Arizona Property & Casualty Insurance License Exam — All Questions

Which agency issues resident property and casualty producer licenses in Arizona?

• a.Arizona Secretary of State
• b.Arizona Department of Motor Vehicles
• c.Arizona Department of Insurance and Financial Institutions (DIFI)✓
• d.The federal National Association of Insurance Commissioners

Arizona's insurance regulator is the Arizona Department of Insurance and Financial Institutions (DIFI), led by the Director appointed by the Governor. It issues producer licenses and enforces the state insurance code — not the DMV, the Secretary of State, or the NAIC.

After a producer is licensed in Arizona, what must occur before he or she can transact business for a specific insurer?

• a.Nothing further; the license alone authorizes representing any insurer
• b.The producer must post a personal surety bond with the state treasurer
• c.The producer must first sell ten policies as a supervised trainee
• d.The insurer must appoint the producer and file that appointment with the Arizona Department of Insurance and Financial Institutions (DIFI)✓

A license lets a person act as a producer, but to represent a particular company the insurer must appoint the producer and file the appointment with the Arizona Department of Insurance and Financial Institutions (DIFI). A producer may hold appointments from several insurers at once.

Which statement best describes Arizona's continuing education (CE) requirement for resident P&C producers?

• a.No CE is ever required once the license is issued
• b.CE can be satisfied only by retaking the state licensing examination
• c.State-approved CE, including an ethics component, must be completed each renewal period to keep the license active✓
• d.CE is required only in the first renewal cycle and never again

Like other NAIC-model states, Arizona requires resident producers to complete approved CE each renewal cycle, including a required ethics portion, plus the renewal fee. Exact hour totals are set by the Arizona Department of Insurance and Financial Institutions (DIFI); confirm the current hours before renewing.