Under A.R.S. 20-281(10), which description best defines 'negotiating' insurance?

Why A is correct

A.R.S. 20-281(10) defines negotiating as acting as an intermediary between the applicant and the insurer for the purpose of effecting an insurance contract. A producer who carries information between the parties and helps the contract come together is negotiating, and must be licensed to do so in Arizona.

Why the other options are wrong

• B) Delivering the policy and collecting the initial premium is part of selling under A.R.S. 20-281(14).
• C) Urging a person to apply for coverage is solicitation under A.R.S. 20-281(15).
• D) Filing claim forms is policyholder service, not the intermediary role that defines negotiating.

Memory hook

Negotiate = the go-between: applicant on one side, insurer on the other.

Why D is correct

A.R.S. 20-281(10) defines negotiating as conferring directly or indirectly with a prospective purchaser about the merits or advisability of a particular insurance policy, with the purpose of influencing the purchase decision. The definition is broad enough to cover indirect persuasion, so a person who steers a prospect's choice is negotiating even without handing over paperwork.

Why the other options are wrong

• A) Wrong because collecting premiums is not negotiating under A.R.S. 20-281(10); the definition centers on conferring with a prospective purchaser.
• B) Wrong because delivering a policy relates to selling, not negotiating; A.R.S. 20-281(10) focuses on persuasion before the purchase decision.
• C) Wrong because examining and rating an application is an insurer function, not the purchaser-directed conferring that A.R.S. 20-281(10) defines.

Memory hook

Negotiate = steer the purchase — talking merits with a prospect is 20-281(10).