Property & Casualty- Arizona State
Laws Exam Questions & Answers33
An insurer cannot _____ or ______ a motor vehicle policy solely because of location of
residence, age, race, color, religion, sex, national origin, or ancestry. - ANSWERS -cancel or
nonrenew
Prior to being in effect for ____ days, an auto policy can be cancelled for nonpayment, if the
premium is not received beyond the 7-day grace period. - ANSWERS -60
True or False:
Cancellation of an auto policy is effective on the date the notice is mailed. - ANSWERS -True
True or False:
A cancellation occurs after the renewal date. - ANSWERS -False
A cancellation occurs prior to the renewal date.
A ______ would occur at the end of the policy period. - ANSWERS -nonrenewal
Auto insurance cannot be cancelled or nonrenewed after it is in effect for ____ day sunless
there is a specific allowed reason. - ANSWERS -60
True or False:
,Auto policy can be cancelled if a covered auto is put to commercial use. - ANSWERS -True
Cancel or nonrenewal of auto insurance must include what? - ANSWERS -specific reasons
notice of the insured's rights to appeal to the Director within 10 days of receipt of notice
notice of possible eligibility in Arizona Automobile Insurance Plan
refund of unearned premium
If an individual wants to transact business as an insurance producer, he/she must meet all of the
following requirements EXCEPT:
a. Be at least 18 years old
b. Apply for a license within 2 years of passing the licensing exam
c. Pay all required fees
d. Not commit any act that is grounds for denial - ANSWERS -b
An applicant must apply for a license within 1 year of passing the licensing exam.
In order for a business entity to obtain a producer license, it must comply with which of the
following requirements?
a. Provide the name and address of the company's clients
b. Only disclose the names of the company's CEO
c. Ensure that all employees acting as producers are licensed as producers
d. Pay fees after submitting an application license to the Commissioner - ANSWERS -c.
Business entities must ensure that all employees who act as producers are licensed.
Before granting a license, the Director may require which of the following?
,a. Fingerprints
b. Proof of a college degree
c. Verification of medical history
d. Copy of tax returns - ANSWERS -a.
The Director may order a criminal background check, including fingerprints.
Within what time frame must a nonresident producer apply for a resident producer license
upon moving to Arizona?
a. 90 days
b. 60 days
c. 30 days
d. 10 days - ANSWERS -a.
A nonresident must apply for a producer license within 90 days of becoming a resident if they
wish to act as an insurance provider in this state.
A resident license:
a. Must hold a resident license in another state
b. Is issued a license without examination
c. Must have a residence or principal place of business in this state
d. Cannot hold a nonresident license at the same time - ANSWERS -c.
A resident license does not hold a resident license in any other state and must have a residence
or place of business in this state. They must pass an examination and can request a nonresident
license in any other state.
, All of the following statements about obtaining a nonresident license are correct, except:
a. It is issued to a person whose home state is not Arizona
b. An examination is not required as long as the resident state is reciprocal
c. The applicant's resident license must be valid and in good standing
d. The application fees are waived for nonresident licenses - ANSWERS -d.
A nonresident applicant must submit an application and pay the required fees
A temporary license may be issued to a designated individual for all of the following reasons,
except:
a. A resident license applicant is unable to pass the license exam
b. The disability of an individual licensed on behalf of a business entity
c. An insurance producer enters active service in the Armed Forces
d. The death of a licensed producer for the purpose of selling the business - ANSWERS -a.
A temporary license will not be issued to an individual who cannot qualify based on the
licensing requirements
Which of the following statements regarding using an assumed business name is NOT correct?
a. A producer may use an assumed name at any time
b. An assumed business name may not be misleading or deceptive
c. A trade name must be lawfully registered
d. The Director may deny the use of an assumed name - ANSWERS -a.
In order to use an assumed name, the producer must notify the Director before it can be used
because the Director may deny the use of the assumed name
Laws Exam Questions & Answers33
An insurer cannot _____ or ______ a motor vehicle policy solely because of location of
residence, age, race, color, religion, sex, national origin, or ancestry. - ANSWERS -cancel or
nonrenew
Prior to being in effect for ____ days, an auto policy can be cancelled for nonpayment, if the
premium is not received beyond the 7-day grace period. - ANSWERS -60
True or False:
Cancellation of an auto policy is effective on the date the notice is mailed. - ANSWERS -True
True or False:
A cancellation occurs after the renewal date. - ANSWERS -False
A cancellation occurs prior to the renewal date.
A ______ would occur at the end of the policy period. - ANSWERS -nonrenewal
Auto insurance cannot be cancelled or nonrenewed after it is in effect for ____ day sunless
there is a specific allowed reason. - ANSWERS -60
True or False:
,Auto policy can be cancelled if a covered auto is put to commercial use. - ANSWERS -True
Cancel or nonrenewal of auto insurance must include what? - ANSWERS -specific reasons
notice of the insured's rights to appeal to the Director within 10 days of receipt of notice
notice of possible eligibility in Arizona Automobile Insurance Plan
refund of unearned premium
If an individual wants to transact business as an insurance producer, he/she must meet all of the
following requirements EXCEPT:
a. Be at least 18 years old
b. Apply for a license within 2 years of passing the licensing exam
c. Pay all required fees
d. Not commit any act that is grounds for denial - ANSWERS -b
An applicant must apply for a license within 1 year of passing the licensing exam.
In order for a business entity to obtain a producer license, it must comply with which of the
following requirements?
a. Provide the name and address of the company's clients
b. Only disclose the names of the company's CEO
c. Ensure that all employees acting as producers are licensed as producers
d. Pay fees after submitting an application license to the Commissioner - ANSWERS -c.
Business entities must ensure that all employees who act as producers are licensed.
Before granting a license, the Director may require which of the following?
,a. Fingerprints
b. Proof of a college degree
c. Verification of medical history
d. Copy of tax returns - ANSWERS -a.
The Director may order a criminal background check, including fingerprints.
Within what time frame must a nonresident producer apply for a resident producer license
upon moving to Arizona?
a. 90 days
b. 60 days
c. 30 days
d. 10 days - ANSWERS -a.
A nonresident must apply for a producer license within 90 days of becoming a resident if they
wish to act as an insurance provider in this state.
A resident license:
a. Must hold a resident license in another state
b. Is issued a license without examination
c. Must have a residence or principal place of business in this state
d. Cannot hold a nonresident license at the same time - ANSWERS -c.
A resident license does not hold a resident license in any other state and must have a residence
or place of business in this state. They must pass an examination and can request a nonresident
license in any other state.
, All of the following statements about obtaining a nonresident license are correct, except:
a. It is issued to a person whose home state is not Arizona
b. An examination is not required as long as the resident state is reciprocal
c. The applicant's resident license must be valid and in good standing
d. The application fees are waived for nonresident licenses - ANSWERS -d.
A nonresident applicant must submit an application and pay the required fees
A temporary license may be issued to a designated individual for all of the following reasons,
except:
a. A resident license applicant is unable to pass the license exam
b. The disability of an individual licensed on behalf of a business entity
c. An insurance producer enters active service in the Armed Forces
d. The death of a licensed producer for the purpose of selling the business - ANSWERS -a.
A temporary license will not be issued to an individual who cannot qualify based on the
licensing requirements
Which of the following statements regarding using an assumed business name is NOT correct?
a. A producer may use an assumed name at any time
b. An assumed business name may not be misleading or deceptive
c. A trade name must be lawfully registered
d. The Director may deny the use of an assumed name - ANSWERS -a.
In order to use an assumed name, the producer must notify the Director before it can be used
because the Director may deny the use of the assumed name
