Q1. An Arizona life insurance producer replaces a client's existing policy without providing the required Notice Regarding Replacement. What is the consequence under Arizona law?

• ○The replacement is voidable by the client and the producer may face administrative penalties.
• ○The replacement is valid, but the insurer must refund premiums within 30 days.
• ○No consequence if the client consents verbally after the replacement.
• ○The producer must retake the licensing exam before continuing business.