State RegulationsAZ specificDifficulty 2/5
A scheduled-premium variable life policy delivered in Tucson has a premium coming due. Under A.R.S. 20-2604, the policy's grace period must be not less than:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under A.R.S. 20-2604, a scheduled-premium variable life policy must carry a grace period of not less than 31 days. This differs from the 30-day grace period for ordinary individual life policies under A.R.S. 20-1203, so candidates must keep the two figures separate. The 61-day figure applies to flexible-premium variable life, measured from the mailing of the policyholder report.
Why the other options are wrong
- A) Ordinary individual life grace is 30 days under A.R.S. 20-1203, but scheduled-premium variable life requires not less than 31 days under A.R.S. 20-2604.
- B) A 10-day figure is the variable life right of return, not its grace period; the grace minimum is 31 days for scheduled premiums.
- C) The 61-day grace measured from the policyholder report applies to flexible-premium variable life, not scheduled-premium contracts.
Memory hook
Scheduled variable life grace runs one day longer — 31, not 30.