State RegulationsAZ specificDifficulty 2/5
Under A.R.S. 20-1348, how does coverage for accidents differ from coverage for sickness immediately after an individual health policy is reinstated with a conditional receipt?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under A.R.S. 20-1348, reinstatement with a conditional receipt covers accidents from the moment coverage resumes, but sicknesses are covered only if they begin more than 10 days after reinstatement. The split guards the insurer against a sickness already incubating at reinstatement while still protecting the reinstated insured against unforeseen accidents.
Why the other options are wrong
- B) Immediate sickness coverage is exactly what the 10-day provision in A.R.S. 20-1348 withholds.
- C) The 2-year concept belongs to the time limit on defenses under A.R.S. 20-1346, not to post-reinstatement sickness coverage.
- D) The statute treats accidents more favorably than sickness, not the reverse.
Memory hook
Accidents now; sickness after ten.