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ARIZONA PROPERTY & CASUALTY INSURANCE: 125
EXAM-STYLE QUESTIONS WITH FULL RATIONALES
(2026 EDITION)
Risk Management / Contract Law / Property & Casualty Insurance Principles
Exam coverage :-
✓ Section A (Q1–30): Nursing regulation, licensure,
education, renewal, Board administration, and disciplinary
actions.
✓ Section B (Q31–65): Scope of practice, delegation,
supervision, and practice settings.
✓ Section C (Q66–100): Ethics, professional conduct,
unprofessional conduct, and reporting requirements.
✓ Section D (Q101–125): Arizona-specific statutes,
regulations, Board procedures, and practice settings.
SECTION A: INSURANCE REGULATION & LICENSING (Q1–
Q30)
1. The Arizona Property and Casualty Insurance Guaranty
Fund is established under which statute?
A) A.R.S. § 20-662
B) A.R.S. § 20-321
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C) A.R.S. § 20-461
D) A.R.S. § 20-167
CORRECT ANSWER: A) A.R.S. § 20-662
RATIONALE: Option A is correct because A.R.S. § 20-662
establishes the Arizona Property and Casualty Insurance
Guaranty Fund to protect policyholders and claimants in the
event of an insurer's insolvency. Option B is incorrect because §
20-321 governs adjuster licensing. Option C is incorrect
because § 20-461 addresses claim settlement practices. Option
D is incorrect because § 20-167 addresses fees.
2. How many hours of continuing education are required for a
P&C insurance producer every two years in Arizona?
A) 12 hours
B) 18 hours
C) 24 hours
D) 30 hours
CORRECT ANSWER: C) 24 hours
RATIONALE: Option C is correct because Arizona requires 24
hours of continuing education every two years for P&C
insurance producers. Option A is incorrect because 12 hours is
insufficient. Option B is incorrect because 18 hours does not
meet the requirement. Option D is incorrect because 30 hours
exceeds the requirement.
3. What is the passing score requirement for the Arizona P&C
insurance exam?
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A) 60%
B) 65%
C) 70%
D) 75%
CORRECT ANSWER: C) 70%
RATIONALE: Option C is correct because the Arizona P&C exam
requires a minimum passing score of 70%. Option A is incorrect
because 60% is below the passing threshold. Option B is
incorrect because 65% is not the passing standard. Option D is
incorrect because 75% exceeds the requirement.
4. What is the exam fee for the Arizona P&C insurance exam?
A) $42
B) $50
C) $55
D) $75
CORRECT ANSWER: C) $55
RATIONALE: Option C is correct because the exam fee is $55
and is administered by Prometric. Option A is incorrect because
$42 is not the current fee. Option B is incorrect because $50 is
below the actual fee. Option D is incorrect because $75
exceeds the exam fee.
5. How many questions are on the Arizona P&C insurance
exam?
A) 50 questions
B) 75 questions
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C) 100 questions
D) 150 questions
CORRECT ANSWER: C) 100 questions
RATIONALE: Option C is correct because the Arizona P&C exam
has 100 multiple-choice questions with a 2-hour time limit.
Option A is incorrect because 50 questions is below the actual
count. Option B is incorrect because 75 questions is not the
exam length. Option D is incorrect because 150 questions
applies to the adjuster exam.
6. Which Arizona agency administers the P&C insurance
producer licensing examination?
A) Arizona Department of Real Estate
B) Arizona Department of Insurance and Financial Institutions
C) Prometric (contracted vendor)
D) Arizona Secretary of State
CORRECT ANSWER: C) Prometric (contracted vendor)
RATIONALE: Option C is correct because Prometric
administers the Arizona P&C exam on behalf of the Arizona
Department of Insurance and Financial Institutions (ADOI).
Option A is incorrect because ADRE handles real estate
licensing. Option B is incorrect because ADOI is the regulatory
agency but does not directly administer exams. Option D is
incorrect because the Secretary of State does not administer
licensing exams.
7. What is the minimum age requirement to obtain an Arizona
P&C insurance producer license?
ARIZONA PROPERTY & CASUALTY INSURANCE: 125
EXAM-STYLE QUESTIONS WITH FULL RATIONALES
(2026 EDITION)
Risk Management / Contract Law / Property & Casualty Insurance Principles
Exam coverage :-
✓ Section A (Q1–30): Nursing regulation, licensure,
education, renewal, Board administration, and disciplinary
actions.
✓ Section B (Q31–65): Scope of practice, delegation,
supervision, and practice settings.
✓ Section C (Q66–100): Ethics, professional conduct,
unprofessional conduct, and reporting requirements.
✓ Section D (Q101–125): Arizona-specific statutes,
regulations, Board procedures, and practice settings.
SECTION A: INSURANCE REGULATION & LICENSING (Q1–
Q30)
1. The Arizona Property and Casualty Insurance Guaranty
Fund is established under which statute?
A) A.R.S. § 20-662
B) A.R.S. § 20-321
, Page 2 of 66
C) A.R.S. § 20-461
D) A.R.S. § 20-167
CORRECT ANSWER: A) A.R.S. § 20-662
RATIONALE: Option A is correct because A.R.S. § 20-662
establishes the Arizona Property and Casualty Insurance
Guaranty Fund to protect policyholders and claimants in the
event of an insurer's insolvency. Option B is incorrect because §
20-321 governs adjuster licensing. Option C is incorrect
because § 20-461 addresses claim settlement practices. Option
D is incorrect because § 20-167 addresses fees.
2. How many hours of continuing education are required for a
P&C insurance producer every two years in Arizona?
A) 12 hours
B) 18 hours
C) 24 hours
D) 30 hours
CORRECT ANSWER: C) 24 hours
RATIONALE: Option C is correct because Arizona requires 24
hours of continuing education every two years for P&C
insurance producers. Option A is incorrect because 12 hours is
insufficient. Option B is incorrect because 18 hours does not
meet the requirement. Option D is incorrect because 30 hours
exceeds the requirement.
3. What is the passing score requirement for the Arizona P&C
insurance exam?
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A) 60%
B) 65%
C) 70%
D) 75%
CORRECT ANSWER: C) 70%
RATIONALE: Option C is correct because the Arizona P&C exam
requires a minimum passing score of 70%. Option A is incorrect
because 60% is below the passing threshold. Option B is
incorrect because 65% is not the passing standard. Option D is
incorrect because 75% exceeds the requirement.
4. What is the exam fee for the Arizona P&C insurance exam?
A) $42
B) $50
C) $55
D) $75
CORRECT ANSWER: C) $55
RATIONALE: Option C is correct because the exam fee is $55
and is administered by Prometric. Option A is incorrect because
$42 is not the current fee. Option B is incorrect because $50 is
below the actual fee. Option D is incorrect because $75
exceeds the exam fee.
5. How many questions are on the Arizona P&C insurance
exam?
A) 50 questions
B) 75 questions
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C) 100 questions
D) 150 questions
CORRECT ANSWER: C) 100 questions
RATIONALE: Option C is correct because the Arizona P&C exam
has 100 multiple-choice questions with a 2-hour time limit.
Option A is incorrect because 50 questions is below the actual
count. Option B is incorrect because 75 questions is not the
exam length. Option D is incorrect because 150 questions
applies to the adjuster exam.
6. Which Arizona agency administers the P&C insurance
producer licensing examination?
A) Arizona Department of Real Estate
B) Arizona Department of Insurance and Financial Institutions
C) Prometric (contracted vendor)
D) Arizona Secretary of State
CORRECT ANSWER: C) Prometric (contracted vendor)
RATIONALE: Option C is correct because Prometric
administers the Arizona P&C exam on behalf of the Arizona
Department of Insurance and Financial Institutions (ADOI).
Option A is incorrect because ADRE handles real estate
licensing. Option B is incorrect because ADOI is the regulatory
agency but does not directly administer exams. Option D is
incorrect because the Secretary of State does not administer
licensing exams.
7. What is the minimum age requirement to obtain an Arizona
P&C insurance producer license?
