Arizona Adjuster Practice Exam

What action must an insurance agent take to keep their license active after issuance?

1. Pay an annual fee only

2. Submit a renewal application and fee

3. Complete a certain number of continuing education hours

4. Participate in state insurance seminars

The correct answer is: Submit a renewal application and fee

To keep an insurance agent's license active after issuance, it is essential to submit a renewal application and fee. Maintaining an active license is not simply a matter of paying an annual fee or completing educational requirements alone; it involves a specific process that includes formally applying for renewal. The renewal application ensures that the regulatory body has updated information about the agent and their practice. It also allows the agency to confirm that the agent meets all ongoing requirements set forth by the state, including any continuing education stipulations. While fulfilling continuing education hours is also important and helps ensure that agents remain knowledgeable and comply with industry standards, without submitting the renewal application, the license would not remain active. In summary, submitting a renewal application and the associated fee is a critical step that must be completed by the insurance agent to maintain their active status in the state. This process is designed to keep the regulatory framework organized and ensure that only qualified agents are operating within the insurance market.