Page 1 of 83
ARIZONA PROPERTY & CASUALTY INSURANCE FINAL EXAM
QUESTIONS WITH DETAILED- VERIFIED ANSWERS- ALREADY
GRADED A+ || NEWEST EXAM 2025-2026
Insurance Laws & Regulations
Covers ARS Title 20, DIFI rules: licensing (age 18, 2‑year renewal, no CE
for producers; adjusters 24 hrs CE), auto (25/50/15 limits), unfair claims
(20‑461, prompt settlement), homeowners (30‑day non‑renewal, ACV =
replacement cost less depreciation), workers’ comp (all employers,
assigned risk plan), surplus lines (diligent search, $15M capital, taxes),
fraud reporting immunity, policy suit limits (1 year property, 2 years
casualty), FAIR Plan (none in AZ), standard fire policy (NY 1943),
notice‑prejudice, certificate of authority, and Director’s powers.
Questions
1. Under A.R.S. § 28‑4009, the minimum financial responsibility
requirements for a private passenger auto liability policy in Arizona are:
A) $15,000/$30,000/$10,000
✔ B) $25,000/$50,000/$15,000
C) $30,000/$60,000/$25,000
D) $50,000/$100,000/$25,000
, Page 2 of 83
Rationale: Arizona law requires minimum liability limits of $25,000 bodily
injury per person, $50,000 per accident, and $15,000 property damage.
2. An insurance producer in Arizona must be at least how old to obtain a
license?
A) 16 years
✔ B) 18 years
C) 21 years
D) 25 years
Rationale: Applicants must be at least 18 years of age.
3. How often must an Arizona insurance producer renew their license?
A) Annually
✔ B) Every 2 years
, Page 3 of 83
C) Every 4 years
D) Every 5 years
Rationale: Arizona producer licenses are renewed biennially (every 2
years).
4. Does Arizona require continuing education (CE) hours for most
insurance producers to renew their license?
A) Yes, 12 hours every renewal period
B) Yes, 24 hours every renewal period
C) Yes, 48 hours every renewal period
✔ D) No, Arizona does not have a state‑mandated CE requirement for
most producers
Rationale: Arizona is unusual – no state‑mandated CE for most
producers; DIFI encourages but does not require.
, Page 4 of 83
5. Under A.R.S. § 20‑461, which of the following is an unfair claim
settlement practice?
A) Denying a claim without a reasonable investigation
✔ B) Not attempting in good faith to effectuate prompt, fair and
equitable settlements when liability is reasonably clear
C) Paying a claim within 10 business days
D) Requesting a sworn proof of loss
Rationale: Failing to make a good‑faith effort to promptly settle claims
once liability is reasonably clear is prohibited.
6. For a property insurance loss, an Arizona policy may contain a
contractual limitations period to file suit. What is the minimum period
allowed for a property policy under A.R.S. § 20‑1115?
A) 6 months
✔ B) 1 year
ARIZONA PROPERTY & CASUALTY INSURANCE FINAL EXAM
QUESTIONS WITH DETAILED- VERIFIED ANSWERS- ALREADY
GRADED A+ || NEWEST EXAM 2025-2026
Insurance Laws & Regulations
Covers ARS Title 20, DIFI rules: licensing (age 18, 2‑year renewal, no CE
for producers; adjusters 24 hrs CE), auto (25/50/15 limits), unfair claims
(20‑461, prompt settlement), homeowners (30‑day non‑renewal, ACV =
replacement cost less depreciation), workers’ comp (all employers,
assigned risk plan), surplus lines (diligent search, $15M capital, taxes),
fraud reporting immunity, policy suit limits (1 year property, 2 years
casualty), FAIR Plan (none in AZ), standard fire policy (NY 1943),
notice‑prejudice, certificate of authority, and Director’s powers.
Questions
1. Under A.R.S. § 28‑4009, the minimum financial responsibility
requirements for a private passenger auto liability policy in Arizona are:
A) $15,000/$30,000/$10,000
✔ B) $25,000/$50,000/$15,000
C) $30,000/$60,000/$25,000
D) $50,000/$100,000/$25,000
, Page 2 of 83
Rationale: Arizona law requires minimum liability limits of $25,000 bodily
injury per person, $50,000 per accident, and $15,000 property damage.
2. An insurance producer in Arizona must be at least how old to obtain a
license?
A) 16 years
✔ B) 18 years
C) 21 years
D) 25 years
Rationale: Applicants must be at least 18 years of age.
3. How often must an Arizona insurance producer renew their license?
A) Annually
✔ B) Every 2 years
, Page 3 of 83
C) Every 4 years
D) Every 5 years
Rationale: Arizona producer licenses are renewed biennially (every 2
years).
4. Does Arizona require continuing education (CE) hours for most
insurance producers to renew their license?
A) Yes, 12 hours every renewal period
B) Yes, 24 hours every renewal period
C) Yes, 48 hours every renewal period
✔ D) No, Arizona does not have a state‑mandated CE requirement for
most producers
Rationale: Arizona is unusual – no state‑mandated CE for most
producers; DIFI encourages but does not require.
, Page 4 of 83
5. Under A.R.S. § 20‑461, which of the following is an unfair claim
settlement practice?
A) Denying a claim without a reasonable investigation
✔ B) Not attempting in good faith to effectuate prompt, fair and
equitable settlements when liability is reasonably clear
C) Paying a claim within 10 business days
D) Requesting a sworn proof of loss
Rationale: Failing to make a good‑faith effort to promptly settle claims
once liability is reasonably clear is prohibited.
6. For a property insurance loss, an Arizona policy may contain a
contractual limitations period to file suit. What is the minimum period
allowed for a property policy under A.R.S. § 20‑1115?
A) 6 months
✔ B) 1 year
