State RegulationsAZ specificDifficulty 1/5
If an Arizona life insurer specifies a period for settling the death claim, the period may not exceed how long after receipt of due proof of loss?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1215, when the insurer elects to specify a settlement period, it may not exceed 2 months from receipt of due proof of loss. The proceeds are then paid according to the beneficiary designation or, if none applies, to the insured's estate. The clock starts with due proof, not with the date of death.
Why the other options are wrong
- A) 6 months is the policy-loan deferment ceiling under A.R.S. 20-1208, not the settlement period.
- C) 90 days is the A&H proof-of-loss filing window under A.R.S. 20-1351, a different rule.
- D) 45 days is the health reinstatement figure under A.R.S. 20-1348, not a life settlement period.
Memory hook
Settle it inside two months of proof.