State RegulationsAZ specificDifficulty 2/5
A producer sells a Medicare supplement policy in Mesa and wants to charge the applicant a service fee on top of the premium. Under A.R.S. 20-465(D), the producer:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-465(D) expressly prohibits a producer from charging any fee in addition to the premium for a Medicare supplement policy. The premium is the entire permitted charge, so a service fee on a Medicare supplement sale is a violation enforceable by the Director.
Why the other options are wrong
- B) Written consent does not create an exception to A.R.S. 20-465(D).
- C) The fee's size relative to the commission is irrelevant; any fee beyond the premium is prohibited.
- D) There is no first-year exception; A.R.S. 20-465(D) bars fees beyond the premium entirely.
Memory hook
Med supp sales: premium only, no extra fee — A.R.S. 20-465(D).