State RegulationsAZ specificDifficulty 2/5
Following a hearing on unfair-practice grounds, what is the maximum period for which the Director of the Arizona Department of Insurance and Financial Institutions may suspend a producer's license?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Arizona law reflected in A.R.S. 20-294 and the unfair-practice grounds of A.R.S. 20-288, the Director may suspend a license for not more than twelve months, or revoke it, after a hearing. Suspension is the capped, shorter sanction; anything beyond the cap means revocation rather than a longer suspension.
Why the other options are wrong
- B) Wrong because one hundred eighty days is the temporary-license ceiling under A.R.S. 20-286, not the suspension cap.
- C) Wrong because the suspension cap is twelve months; two years exceeds what the Director may impose as a suspension under Arizona law.
- D) Wrong because ninety days understates the cap; the Director may suspend for up to twelve months after a hearing.
Memory hook
Suspension tops out at twelve months; beyond that, revoke.