14.6.1 Licensing and Regulatory Obligations.

JurisdictionArizona

14.6.1 Licensing and Regulatory Obligations. As professionals, insurance producers are regulated by the State to protect the public.102 For example, before insurance producers can legally transact insurance business in Arizona, they must obtain a license.103 According to Darner, “[p]ublic policy supports the adoption of rules which tend to discourage negligence or misconduct in the insurance industry.”104 Arizona’s licensing requirement is such a rule.105 Agents have other statutory responsibilities which also may give rise to regulatory discipline, rather than tort liability, such as the protection, use and maintenance of insureds’ personal information,106 record retention,107 or placing excess and surplus lines coverage.108

Producers may also have specific statutory or regulatory duties which only apply to the solicitation or sale of particular kinds of insurance policies. For example, life insurance producers must investigate whether the offered policy replaces an existing policy, and if so, provide specific, Arizona Department of...

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