State RegulationsAZ specificDifficulty 2/5
An Arizona accident and health claim becomes payable to a minor child with no guardian appointed. Under A.R.S. 20-1353, what may the insurer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-1353 permits the insurer, when the payee is a minor or is not competent to give a valid release, to pay a relative by blood or marriage (or a guardian) who appears equitably entitled to the proceeds. Such a payment discharges the insurer — a practical Arizona protection that keeps minor claimants from waiting on formal court proceedings.
Why the other options are wrong
- A) A.R.S. 20-1353 offers the equitable-relative payment option precisely to avoid holding funds for years; waiting for the age of majority is not required.
- B) The minor's incapacity does not defeat the claim; the statute works around it by allowing payment to an equitably entitled relative or guardian.
- C) A court-appointed representative is not the only lawful payee; A.R.S. 20-1353 expressly allows payment to an equitably entitled relative by blood or marriage.
Memory hook
Minor payee? Pay the fairly entitled relative — and you're off the hook.