State RegulationsAZ specificDifficulty 3/5
A flexible-premium variable life policy in Arizona has missed a payment. Under A.R.S. 20-2604, the grace period must end not less than how long after the policyholder report is mailed?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under A.R.S. 20-2604, the grace period of a flexible-premium variable life policy must end not less than 61 days after the policyholder report is mailed. Because flexible premiums can vary, the statute ties the extended grace period to the report mailing rather than to a fixed due date, giving policyholders a longer protection window than the 31 days required for scheduled-premium variable life.
Why the other options are wrong
- A) The 31-day minimum is the scheduled-premium variable life grace period, not the flexible-premium rule measured from the report mailing.
- B) A 10-day figure is the variable life right of return; it plays no role in the flexible-premium grace calculation.
- D) A 30-day figure is the ordinary life grace period under A.R.S. 20-1203 and does not govern flexible-premium variable life under A.R.S. 20-2604.
Memory hook
Flexible premium, longer leash — grace runs 61 days from the report mailing.