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State RegulationsAZ specificDifficulty 2/5

Once the contestable period of an Arizona life policy has expired, the insurer may still contest the policy on the ground of:

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

A.R.S. 20-1204 makes the policy incontestable after 2 years except for nonpayment of premiums, which is the one ground that survives the window. Age misstatements have their own equitable-adjustment remedy under A.R.S. 20-1206 rather than a right to void the policy, and ordinary application misstatements simply lose contestability at the two-year mark.

Why the other options are wrong

  • B) age misstatement triggers adjustment of the benefit under A.R.S. 20-1206, not voidance.
  • C) an occupation change after issue is not a contest ground under the statute.
  • D) ordinary application misstatements can no longer be contested once the 2-year period ends.

Memory hook

Only unpaid premiums outlive the window.

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