APCI - Arizona Property and Casualty Insurance Exam

Question 21: An Arizona producer moves her residence from Peoria to Prescott and also changes the email address she uses for business. Her colleague asks how quickly she must notify the Director of those changes. Which of the following states the deadline?

Ten days

Fifteen days

Thirty days

Sixty days

Question 22: An Arizona commercial insured has paid a full annual premium when his carrier is declared insolvent two months into the term. He asks the guaranty fund how much of his unearned premium it can return. Which of the following describes the unearned premium limits?

No minimum and no maximum

Twenty-five dollar minimum, no maximum

One hundred to three hundred thousand

Twenty-five to ten thousand dollars

Question 23: An Arizona producer is arrested and formally charged with a felony in another state. Months later a court enters a judgment of conviction against him. His attorney asks when the duty to report to the Director was triggered. Which of the following is correct?

When the charges were filed

On the date of arrest

On the filing date of the conviction

When the appeal period expires

Question 24: A regulator in another state completes an administrative proceeding against an Arizona nonresident licensee and enters a final order. The licensee asks his compliance officer how quickly Arizona must be told and what must accompany the report. Which of the following is correct?

Thirty days after final disposition

Fifteen days after the hearing

Sixty days after final disposition

At the next quadrennial renewal

Question 25: An Arizona resident producer holding the property and casualty lines is planning the continuing education she must complete for a license period that began well after the start of two thousand fourteen. Which of the following states her requirement?

Twenty-four hours including three ethics hours

Forty hours including four ethics hours

Thirty hours including two ethics hours

Forty-eight hours including six ethics hours

Question 26: An Arizona independent adjuster who has held her adjuster license for several years asks whether she must complete the same continuing education hours her producer colleagues complete before their licenses expire. Which of the following correctly describes her position?

The full producer requirement applies

No continuing education requirement applies

Half the producer requirement applies

Only ethics hours apply

Question 27: An Arizona workers compensation carrier becomes insolvent while several injured worker claims are open. The employer asks whether the guaranty fund's dollar caps will limit what those claimants recover. Which of the following describes how the statute treats those claims?

Barred from the fund entirely

Capped at half the ceiling

Capped at the unearned premium maximum

Excepted from the caps

Question 28: The Director revokes an Arizona producer's license after a hearing, and the former licensee asks his attorney how soon he may apply for a new Arizona insurance license of any kind. Which of the following describes the statutory bar that follows a revocation?

Six months

Two years

One year

Five years

Question 29: An Arizona agency's license is revoked because its designated responsible producer engaged in misconduct. A junior officer of that agency, who knew nothing of the conduct, wants her own individual license. Which of the following best describes her position?

Eligible if not personally at fault

Barred one year without exception

Permanently barred as an officer

Eligible only after the agency is reinstated

Question 30: An Arizona agency owner wants to pay a finder's fee to a friend who refers commercial prospects to the agency. The friend holds no insurance license of any kind. Which of the following describes what Arizona law permits in this situation?

Allowed if the amount is modest

Prohibited, since the friend is unlicensed

Allowed with the insured's written consent

Allowed if labeled a marketing expense

Question 31: A retired Arizona producer who let her license lapse still receives renewal commissions on personal lines business she wrote while fully licensed. Her former agency asks whether continuing those payments violates the commissions statute. Which of the following is correct?

Permitted, since she was licensed then

Prohibited, since her license lapsed

Permitted for one year after lapse

Permitted only if she reinstates

Question 32: An Arizona producer competing for a large homeowners account offers to reduce the premium out of her own commission if the applicant places the policy with her agency. Which of the following best describes that offer under Arizona's unfair practices law?

A permitted price concession

A prohibited rebate

A permitted producer fee

A prohibited misrepresentation

Question 33: An Arizona insurer writing homeowners business wants to give each new policyholder a set of hardwired smoke detectors and a free home risk audit. Its compliance officer asks whether these giveaways run afoul of the rebating statute. Which of the following is correct?

Prohibited as inducements

Permitted if the insured pays cost

Permitted as ancillary products

Permitted for commercial policyholders only

Question 34: An Arizona producer wants to give holiday gifts to her best clients and asks how much she may spend before the prohibited inducements statute becomes a problem. Which of the following states the aggregate value cap Arizona applies to such gifts?

Twenty-five dollars

Fifty dollars

Seventy-five dollars

One hundred dollars

Question 35: An Arizona insurer underpays one homeowners claim through a clerical error, corrects the payment as soon as the insured complains, and has no other similar incidents on record. Which of the following best describes whether the unfair claim settlement practices statute has been violated?

Yes, any single underpayment violates it

Yes, correcting after complaint violates it

No, a general business practice is required

No, it reaches third-party claims only

Question 36: A Tucson homeowner telephones her insurer on a Monday morning to report smoke damage from a nearby brush fire. She asks her producer how quickly the company must respond to that notification. Which of the following states the acknowledgment deadline Arizona's claims rule imposes?

Ten working days

Ten calendar days

Fifteen working days

Thirty calendar days

Question 37: An Arizona insurer receives notification of a fire loss at a Gilbert rental property and begins gathering estimates and statements. Its claims manager asks how long the rule gives the company to complete its investigation. Which of the following is correct?

Fifteen working days after notification

Thirty days after notification

Forty-five days after notification

Sixty days after notification

Question 38: An Arizona insured submits a completed proof of loss for water damage at her home in Casa Grande. Her producer explains that the company must now either accept or reject the claim within a stated period. Which of the following describes that deadline?

Ten working days after proof

Twenty calendar days after proof

Thirty working days after proof

Fifteen working days after proof

Question 39: An Arizona underwriter orders a report from a consumer reporting agency showing an applicant's credit history and public records before deciding whether to write a homeowners policy. Which federal law governs how that report may be obtained and used?

The Gramm-Leach-Bliley Act

The Fair Credit Reporting Act

The Telemarketing Sales Rule

The Violent Crime Control Act

Question 40: An insurer evaluating a large Scottsdale commercial property risk hires an outside firm to interview the applicant's neighbors and business associates about her character, reputation and general mode of living. Which of the following identifies the report this activity produces?

An investigative consumer report

A standard consumer report

A loss history report

A public records abstract

APCI Arizona Property and Casualty Insurance Exam - Set 1 - Part 2