State RegulationsAZ specificDifficulty 2/5
An Arizona life policy lapsed and was reinstated. After the fresh contestable window following reinstatement has run, on what ground may the insurer still contest the policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under A.R.S. 20-1227 the post-reinstatement contest window covers fraud or material statements relating to reinstatement; once it runs, A.R.S. 20-1204 leaves only nonpayment of premiums as a surviving contest ground. Health changes are never a contest basis.
Why the other options are wrong
- A) The original-application contest ground closed under A.R.S. 20-1204's two-year rule long before reinstatement.
- B) The reinstatement-related contest window of A.R.S. 20-1227 has itself run.
- D) A post-reinstatement change in health gives no contest right under either statute.
Memory hook
Fresh window closes, nonpayment remains.