State RegulationsAZ specificDifficulty 2/5
Three days after his Arizona individual life policy was reinstated, an insured is injured in an auto accident; five days after reinstatement he develops pneumonia. Under A.R.S. 20-1213, which loss does the reinstated policy cover?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under A.R.S. 20-1213, a reinstated Arizona life policy provides renewed coverage under which sickness is covered only if it begins more than 10 days after the reinstatement date. The accidental injury is covered because the accident-based loss does not depend on the sickness waiting period, while the pneumonia arising five days after reinstatement falls inside the 10-day sickness window and is not covered.
Why the other options are wrong
- A) The policy does not suspend all coverage after reinstatement; A.R.S. 20-1213 restores coverage with a specific waiting rule for sickness only.
- B) Sickness coverage does not resume immediately; sickness beginning more than 10 days after reinstatement is what the statute requires.
- C) Full immediate restoration is wrong for sickness, because the 10-day post-reinstatement waiting rule in A.R.S. 20-1213 excludes early-onset sickness.
Memory hook
Reinstated life policy: accidents count now, sickness waits past 10 days.