State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-1208 and 20-1209, how long may an Arizona insurer defer payment of a policy loan (other than a loan to pay premiums) after due request?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-1208 and 20-1209 permit the insurer to defer payment of a cash policy loan, other than a loan applied to premium payment, for up to 6 months after due request. The deferral right protects insurer liquidity while capping how long the policyholder must wait.
Why the other options are wrong
- A) 30 days is the life grace period figure under A.R.S. 20-1203, not the loan-deferment limit.
- C) 2 months is the claims settlement cap under A.R.S. 20-1215, not the loan-deferment limit.
- D) 3 years is the reinstatement window under A.R.S. 20-1213, not a loan-deferment period.
Memory hook
Loan requests can wait up to 6 months.