Arizona Market Conduct, Ethics & Unfair Practices
The final state topic covers how a Arizona producer must behave in the market: prohibited unfair trade practices, the duty to handle client money properly, and honest advertising and disclosure. Most rules flow from the state's unfair trade practices law and related department rules.
Unfair Trade Practices
Arizona's unfair trade practices law lists prohibited methods of competition and deceptive acts in the business of insurance, including misrepresentation of policy terms, false or misleading advertising, unfair discrimination between similar risks, defamation of an insurer, coercion, and unfair claim settlement practices. Violations can lead to fines and license suspension or revocation by the Arizona Department of Insurance and Financial Institutions (DIFI).
Rebating and Twisting
Rebating — offering any part of the premium or commission, or other valuable consideration, as an inducement to buy — is prohibited in Arizona. Twisting is using misrepresentation or misleading comparisons to induce a policyholder to drop an existing policy for a new one. Both are barred because they harm consumers and create unfair discrimination among policyholders.
Fiduciary Duty and Client Funds
Premiums a producer collects belong to the insurer or the client, not to the producer. Arizona treats this as a fiduciary responsibility: funds must be remitted properly and not commingled or converted for personal use. Failing to account for premiums, or misappropriating client money, is grounds for discipline and can also be a crime.
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State-specific details
State exam facts
- State regulator
- Arizona Department of Insurance and Financial Institutions
- Exam vendor
- PSI
- Passing score
- 70%
Who regulates property & casualty insurance licensing in Arizona?
The Arizona Department of Insurance and Financial Institutions (DIFI) licenses property & casualty producers. As of September 2025, PSI Services replaced Pearson VUE as Arizona's exam vendor, so P&C candidates now register through PSI.
What can I sell with an Arizona P&C license?
The property & casualty license covers personal and commercial property/casualty lines — homeowners, personal and commercial auto, general liability, commercial property, and workers' compensation — broader than the personal-only Personal Lines license. A score of 70% is required to pass.
Does Arizona require prelicensing education for the P&C exam?
Arizona's prelicensing requirement has been the subject of recent changes; confirm the current property & casualty requirement directly with DIFI before enrolling in a course.
Sources: https://difi.az.gov, https://www.psiexams.com/
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