APCI - Arizona Property and Casualty Insurance Exam

Question 1: An Arizona candidate reads older study material that names the state regulator the Arizona Department of Insurance, but the agency title changed when the department absorbed financial institutions oversight. Which of the following correctly identifies the agency that now regulates insurance in Arizona?

Arizona Insurance Commission

Arizona Division of Financial Regulation

Arizona Department of Insurance and Financial Institutions

Arizona Corporation Commission

Question 2: A person who holds no insurance license approaches homeowners at a Chandler street fair, praises a particular insurer's package policy and urges each of them to submit an application to that insurer. Which of the following describes the activity this person performed?

Soliciting

Adjusting

Underwriting

Ratemaking

Question 3: A licensed Arizona producer sits down with a business owner in Tempe, discusses the terms and benefits of a specific commercial policy the owner is considering, and advises the owner on how those terms apply. Which term best describes what the producer did?

Soliciting

Selling

Negotiating

Countersigning

Question 4: A high school senior in Mesa wants to apply for an Arizona resident insurance producer license as soon as possible and asks whether age will stand in the way. Which of the following states the minimum age the Director must find before granting the license?

Sixteen years old

Seventeen years old

Twenty-one years old

Eighteen years old

Question 5: An applicant moving to Arizona from a state that required forty hours of classroom instruction before the licensing examination asks how many hours of general prelicensing education Arizona demands before she may sit for the property and casualty examination. Which of the following is correct?

No general prelicensing hours are required

Twenty hours including two hours of ethics

Forty hours including four hours of ethics

Fifty-two hours of classroom instruction

Question 6: An Arizona producer already licensed for property wants to add the casualty line of authority and asks whether she must repeat the electronic fingerprinting process the Department required when she first applied. Which of the following correctly describes her obligation?

Reprinting for every added line

Reprinting at every renewal

Reprinting after any conviction

No fingerprints for an added line

Question 7: A producer licensed as a nonresident in Arizona sells his home in another state, buys a house in Gilbert and becomes an Arizona resident. Which of the following describes the deadline for applying for Arizona resident licensee status after the move?

Thirty days after becoming a resident

Sixty days after becoming a resident

Ninety days after becoming a resident

At the next quadrennial renewal

Question 8: An Arizona candidate fails the property and casualty examination three times in the spring and asks how many attempts the statute allows within a twelve month period before a waiting period begins. Which of the following states the limit correctly?

Four attempts

Three attempts

Five attempts

Unlimited attempts

Question 9: An Arizona candidate exhausts every permitted attempt at the casualty examination and fails the last one in March. She asks her instructor when she becomes eligible to take that examination again. Which of the following correctly describes the waiting period?

Six months from the first attempt

Six months from the fourth failure

One year from the first attempt

One year from the fourth failure

Question 10: An Arizona candidate passed the property and casualty examination, then spent the following months settling a family matter and did not file a license application until fourteen months later. Which of the following best describes the effect of the delay on her application?

Valid indefinitely once passed

Valid for two years after testing

Passed within one year before application

Cured by a late filing fee

Question 11: A study group in Flagstaff is comparing licensing examinations across several states and wants to know the score a candidate must achieve to pass any Arizona insurance licensing examination. Which of the following states the passing score used in Arizona?

Sixty percent correct

Sixty-five percent correct

Seventy-five percent correct

Seventy percent correct

Question 12: An Arizona homeowners insurer is declared insolvent while a policyholder in Surprise has a fire claim pending. Her producer explains that the Arizona property and casualty guaranty fund pays covered claims only within a band. Which of the following describes that band?

Over one hundred, under three hundred thousand

Anything up to three hundred thousand

Over one thousand, under five hundred thousand

Whatever the policy limit allows

Question 13: An Arizona resident producer born in September asks her agency manager on what calendar date her individual license will expire, since the renewal notice she received does not show a familiar anniversary. Which of the following identifies the expiration date Arizona uses?

The original issue date anniversary

The last day of her birth month

December thirty-first of the fourth year

The last day of the quarter

Question 14: An Arizona agency principal compares the term of his own individual producer license with the term of the agency's business entity license and finds the two described differently. Which of the following best identifies how Arizona states those two terms?

Both exactly four years

Both exactly three years

Individual three to four, entity four

Individual four, entity two to three

Question 15: An Arizona producer whose license expires at the end of next month wants to file her renewal early so the paperwork is off her desk before a long trip. Which of the following describes how far in advance Arizona allows a renewal to be filed?

Thirty days before expiration

Ninety days before expiration

One hundred eighty days before expiration

Only during the expiration month

Question 16: An Arizona producer lets her license lapse and files the renewal application four months after the expiration date. Her manager asks what the statute requires her to pay in addition to the ordinary quadrennial fee. Which of the following is correct?

Twice the quadrennial fee

A fifty-dollar reinstatement charge

A one-hundred-dollar late fee

Nothing, since a year has not passed

Question 17: An Arizona producer stops transacting insurance, allows his license to expire and does nothing about it for eighteen months. He then decides to return to the business and asks what filing he must now make. Which of the following describes his position?

Renewal with the ordinary late fee

Renewal with a doubled late fee

A reinstatement petition before the Director

A new application

Question 18: A licensed Arizona producer in Yuma dies unexpectedly, and his surviving spouse needs authority to continue servicing the book of business while the agency is wound up. Which of the following states the maximum term of the temporary license available to her?

One hundred eighty days

Ninety days

One year

Two years

Question 19: An Arizona property and casualty producer wants to place a difficult manufacturing risk with a non-admitted insurer and asks whether her existing license lets her do so. Which of the following correctly describes what Arizona requires for that placement?

Her property and casualty license suffices

A separate surplus lines broker license

A written waiver from the insured

An endorsement added without testing

Question 20: A Scottsdale insurance agency organized as a limited liability company applies for an Arizona business entity license. The Director reviews the filing for one feature that ties the entity's conduct to a licensed individual. Which of the following must the entity supply?

A designated responsible licensed producer

An unlicensed resident manager

A surety bond to the Director

A written opinion of Arizona counsel

APCI Arizona Property and Casualty Insurance Exam - Set 1 - Part 1