State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-1208, after a policyowner's due request for a cash loan, the insurer may defer payment for up to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1208, together with A.R.S. 20-1209, lets the insurer defer payment of a cash loan for up to 6 months after a due request, unless the loan is for premium payment, which cannot be deferred. The deferment right protects the insurer's liquidity against sudden mass loan demands while still guaranteeing the owner eventual access to the cash value.
Why the other options are wrong
- B) 90 days is the A&H proof-of-loss window, not the loan deferment ceiling.
- C) 45 days is the health reinstatement trigger under a conditional receipt.
- D) 2 months is the maximum life claim settlement period under A.R.S. 20-1215.
Memory hook
Loan money can wait six months.