State RegulationsAZ specificDifficulty 2/5
A Tucson policyholder argues that a verbal promise made by the selling agent modifies the coverage in her Arizona accident and health policy. Under A.R.S. 20-1345, what constitutes the entire contract, and can the agent's promise change it?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under A.R.S. 20-1345, the entire contract clause makes the policy plus the attached application and papers the complete agreement between the parties, and no agent may waive the policy's terms. Verbal side promises have no contractual force in Arizona, which protects both the insurer and the policyholder from undocumented changes to coverage.
Why the other options are wrong
- B) The attached application and papers are part of the entire contract, and A.R.S. 20-1345 expressly denies agents the power to waive policy terms.
- C) Reasonable reliance on an agent's verbal promise does not amend the contract; A.R.S. 20-1345 confines the agreement to the policy and attached papers.
- D) Verbal statements are excluded from the entire contract by definition; only the written policy and attached papers count under A.R.S. 20-1345.
Memory hook
Paper only: policy plus attached papers — and agents cannot waive.