Key Takeaways
- The Arizona Department of Insurance and Financial Institutions (DIFI) regulates all insurance activities in Arizona under Arizona Revised Statutes Title 20
- The Director of Insurance is appointed by the Governor and confirmed by the State Senate
- DIFI handles licensing, enforcement, consumer complaints, rate review, and market conduct examinations
- Arizona insurance law is found in the Arizona Revised Statutes Title 20 (Insurance)
- Arizona requires fingerprinting through Fieldprint after passing the licensing exam
Arizona Department of Insurance and Financial Institutions (DIFI)
Important: This study guide covers Arizona state-specific Life & Health insurance content only. You should complete the national Life & Health exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Arizona Department of Insurance and Financial Institutions (DIFI) is the state agency responsible for regulating the insurance industry in Arizona. DIFI was created in 2020 when the former Arizona Department of Insurance merged with the Department of Financial Institutions.
The Director of Insurance
The Director of Insurance is:
- Appointed by the Governor with Senate confirmation
- Serves at the pleasure of the Governor
- Responsible for enforcing Arizona Revised Statutes Title 20
- Authorized to adopt rules, investigate violations, and discipline licensees
Director Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt rules interpreting insurance statutes |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review insurance rates for compliance |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
Arizona Revised Statutes Title 20
Arizona insurance law is found in Arizona Revised Statutes (A.R.S.) Title 20 - Insurance:
- Licensing requirements for producers and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: Remember that the Arizona Director of Insurance is APPOINTED by the Governor, not elected. Arizona merged its insurance and financial institutions departments in 2020.
DIFI Organization
DIFI operates through several divisions:
- Producer Licensing - Handles agent licensing and continuing education
- Insurance Regulation - Reviews rates and policy forms
- Market Conduct - Examines insurer practices
- Financial Affairs - Monitors insurer solvency
- Consumer Protection - Handles consumer complaints and assistance
How is the Arizona Director of Insurance selected?
Where is Arizona insurance law primarily found?