State RegulationsAZ specificDifficulty 1/5
An insured returns a reinstatement application for a lapsed individual health policy together with a conditional receipt. Under A.R.S. 20-1348, when is the policy reinstated if the insurer has not yet approved the application?
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 C is correct
A.R.S. 20-1348 provides that when a conditional receipt is given, the reinstated policy takes effect on approval of the application or on the 45th day after the receipt is issued, whichever occurs first. This 45th-day backstop prevents the insurer from leaving a reinstatement application in limbo indefinitely while the insured believes coverage exists.
Why the other options are wrong
- A) 10 days relates to the post-reinstatement sickness waiting rule, not the reinstatement effective date.
- B) 20 days is the notice-of-claim deadline under A.R.S. 20-1349, not the reinstatement clock.
- D) 90 days is the proof-of-loss period under A.R.S. 20-1351, not the reinstatement effective date.
Memory hook
45 days or approval — whichever comes first.