State RegulationsAZ specificDifficulty 1/5
Under Arizona law, an individual life insurance policy issued in Phoenix must provide a grace period of what minimum length for the payment of any premium after the first?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1203, an individual life insurance policy must provide a grace period of 30 days (or, at the insurer's option, one month of not less than 30 days) for the payment of any premium after the first. Coverage stays in force during the grace period, so a death claim arising in grace is still payable, subject to deduction of the overdue premium.
Why the other options are wrong
- A) 7 days is the Arizona grace figure for weekly-premium health policies under A.R.S. 20-1347, not for life insurance.
- C) 31 days is a common distractor: in Arizona it applies to health policies and scheduled-premium variable life, but ordinary life grace is 30 days.
- D) 61 days is the minimum end of the grace window for flexible-premium variable life measured from the policyholder report, not the individual life grace period.
Memory hook
Arizona life grace is a flat 30 - one month of at least 30 days.