Question 1 of 7
Explain how Arizona’s Recovery Fund treats a claim made by a licensee who was acting as a principal or agent in the same transaction. What distinction would you make between that claimant exclusion and a consumer harmed by a licensee acting as principal?
Strong Interview Answer
A.R.S. § 32-2186(D) generally bars the licensee’s own Fund claim when the licensee acted as a principal or agent, including specified affiliated interests. That is different from A.R.S. § 32-2186(A), which can allow an aggrieved consumer to seek Fund relief when a licensee acting as principal committed fraud or misrepresentation and the consumer relied on the licensee’s licensed status.
What to Listen For
- claimant licensee exclusion
- principal or agent
- affiliated interests
- consumer claim distinction
- A.R.S. § 32-2186(A) and (D)
Caution
Do not say the licensee can make the claim merely by waiving a commission.