State RegulationsAZ specificDifficulty 3/5
For which Arizona product is a grace period of not less than 31 days the correct minimum?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Arizona's variable life statute, A.R.S. 20-2604, sets a grace of not less than 31 days for scheduled-premium variable contracts. Ordinary life under A.R.S. 20-1203 runs 30 days, flexible-premium variable life grace ends not less than 61 days after the policyholder report is mailed, and health grace is mode-based under A.R.S. 20-1347, with not less than 7 days for weekly-premium policies. Identifying the product and premium mode is what selects the right figure.
Why the other options are wrong
- A) ordinary life grace is 30 days under A.R.S. 20-1203.
- B) flexible-premium variable life grace ends not less than 61 days after the policyholder report is mailed.
- C) weekly-premium health grace is not less than 7 days under A.R.S. 20-1347.
Memory hook
Scheduled variable runs a day longer.