State RegulationsAZ specificDifficulty 3/5
A life policy issued in Scottsdale has been in force during the insured's lifetime for more than two years. Which ground still allows the insurer to avoid payment under A.R.S. 20-1204?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A.R.S. 20-1204 leaves exactly one surviving ground after the two-year period: nonpayment of premiums. Misrepresentation and similar defenses fall away once the policy has been in force for two years during the insured's lifetime, so unpaid premiums remain the insurer's only contest path.
Why the other options are wrong
- A) Material misrepresentation is barred once the two-year contestable period has run under A.R.S. 20-1204.
- B) Insurable-interest challenges are likewise subject to the same contestable window and fall away after two years.
- D) Beneficiary fraud is not listed as an exception in A.R.S. 20-1204; only nonpayment of premiums survives.
Memory hook
After two years only one sword remains: unpaid premiums.