State RegulationsAZ specificDifficulty 1/5
An Arizona policyholder returns an LTC policy within the free-look period under A.R.S. 20-1691.07. What refund is the policyholder entitled to receive?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under A.R.S. 20-1691.07, returning the LTC policy within 30 days after delivery entitles the policyholder to a full premium refund. Arizona does not permit the insurer to deduct administrative charges or the value of interim coverage from a free-look return — the return right restores every premium dollar paid.
Why the other options are wrong
- A) No administrative-cost deduction is authorized; the statute commands a full premium refund.
- B) The value of coverage used during the free-look period is not offset against the refund under A.R.S. 20-1691.07.
- D) The free look yields an affirmative refund of premiums paid, not merely a stop to future billing.
Memory hook
Free look means free: every premium dollar returns.