State RegulationsAZ specificDifficulty 3/5
Under A.R.S. 20-1353, the payee of a health policy claim is a minor and no guardian has been appointed. Who may the insurer pay, and what is the effect of that payment?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-1353 permits the insurer, when the payee is a minor or is not legally competent, to pay a relative by blood or marriage — or a guardian — who appears equitably entitled to the proceeds, and such payment fully discharges the insurer's obligation. This lets modest claims be paid practically without the delay and expense of court proceedings.
Why the other options are wrong
- A) Holding benefits until majority is not required; the statute offers the equitable-relative payment route instead.
- C) A court deposit is not a condition of the statute's discharge mechanism.
- D) The recipient must be a relative by blood or marriage who is equitably entitled, and the statutory payment does discharge the insurer.
Memory hook
Pay the fair relative — and be done.