State RegulationsAZ specificDifficulty 2/5
An Arizona life insurer discovers what appears to be a staged death claim submitted by a beneficiary in Mesa. Beyond the criminal exposure, what civil penalty exposure does the fraudster face from the state?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-466.02 authorizes the attorney general to recover a civil penalty of not more than $5,000 per violation for fraudulent insurance acts, and this is separate from the criminal penalties under A.R.S. 20-463.
Why the other options are wrong
- A) A civil penalty is expressly available under A.R.S. 20-466.02; restitution is not the sole remedy.
- B) $250 is the unintentional producer-violation figure under A.R.S. 20-295(F), not the fraud penalty.
- C) $2,500 is the intentional producer-violation figure under A.R.S. 20-295(F), not the fraud civil penalty.
Memory hook
Staged claims cost up to $5K each — the AG collects via 20-466.02.