State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-1204, an Arizona life insurance policy becomes incontestable after a period of years from its issue date, except for:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1204, a life policy issued in Arizona may not be contested after it has been in force for two years from issue, except for nonpayment of premiums. Incontestability bars the insurer from attacking the policy for misstatements in the application once the two-year window closes, while premium nonpayment remains a ground to rescind or lapse coverage at any time.
Why the other options are wrong
- A) After the two-year incontestable period runs, material misrepresentations — including fraudulent ones in the application — can no longer be used to contest the policy, except for nonpayment.
- C) A.R.S. 20-1204 lists only nonpayment of premiums as the exception; suicide handling is not the statutory incontestability exception.
- D) Occupational misstatements are application misstatements that fall within the two-year contestable window and are barred once it closes.
Memory hook
Two years to contest, and only nonpayment survives the clock.