State RegulationsAZ specificDifficulty 2/5
A policyholder applies to reinstate a lapsed health policy with a conditional receipt, and the insurer approves the application before the 45th day. Under A.R.S. 20-1348, when did reinstatement take effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1348, reinstatement with a conditional receipt takes effect on approval or on the 45th day after the receipt is issued, whichever occurs first. Earlier approval therefore controls, and the 45th day never operates as a mandatory waiting period when the insurer acts sooner.
Why the other options are wrong
- A) The 45th day is only the backstop for insurer inaction; earlier approval supersedes it.
- C) No 10-day reinstatement trigger exists under A.R.S. 20-1348.
- D) 90 days belongs to the proof-of-loss rule under A.R.S. 20-1351, not reinstatement.
Memory hook
Whichever comes first: approval or day 45.