State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-1213, a lapsed individual life policy in Arizona may be reinstated within how long from premium default, upon written application, evidence of insurability to the insurer's satisfaction, and payment of all overdue premiums with interest?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under A.R.S. 20-1213, an Arizona life policyowner may apply to reinstate a lapsed policy within three years from the date of premium default. Reinstatement requires a written application, evidence of insurability satisfactory to the insurer, payment of all overdue premiums plus interest, and repayment of any policy debt. Candidates should note the contrast with the shorter reinstatement window that applies to variable life products under Arizona law.
Why the other options are wrong
- B) Two years is the variable life reinstatement window, not the general individual life reinstatement period of three years under A.R.S. 20-1213.
- C) One year understates the statutory period; A.R.S. 20-1213 allows reinstatement applications for three years after default.
- D) Four years is the license renewal term, not the reinstatement window; the statute gives three years from premium default.
Memory hook
Life reinstatement — three years, proof of insurability, and every overdue dollar with interest.