State RegulationsAZ specificDifficulty 2/5
Which statement about the Arizona health policy grace period under A.R.S. 20-1347 is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1347 the grace period protects every premium after the first, and its minimum length depends on the payment mode: 7 days for weekly, 10 days for monthly, and 31 days for all other policies. The first premium is not covered because coverage cannot take effect until the initial consideration is actually paid.
Why the other options are wrong
- A) The first premium must be paid before the policy takes effect, so no grace period attaches to it.
- C) Infrequent modes such as quarterly or annual receive the 31-day minimum, but the rule covers all modes, not only annual ones.
- D) The mode-based minimums are statutory floors under A.R.S. 20-1347; an insurer may not undercut them at its discretion.
Memory hook
First premium: no grace. After that: 7, 10, or 31.