State RegulationsAZ specificDifficulty 2/5
A resident of Tucson receives a newly issued LTC policy and, three weeks later, decides the coverage is unaffordable. Under A.R.S. 20-1691.07, what may the policyholder do?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1691.07's free look runs 30 days from delivery, so a return made three weeks in falls well inside the window and triggers a full premium refund. The right does not depend on the policyholder's reason or on any producer misconduct, but it does expire — a first-year walk-away right is not Arizona law.
Why the other options are wrong
- B) There is no 45-day LTC window and no partial-refund formula; the statutory right is 30 days with a full refund.
- C) The return right is unconditional during the free-look period; producer misstatement is not a precondition to returning the policy.
- D) The right expires after 30 days from delivery; a year-long return privilege is not part of A.R.S. 20-1691.07.
Memory hook
Three weeks in, still inside the 30-day door.