State RegulationsAZ specificDifficulty 2/5
An Arizona variable life policy lapses for premium default. Within what period may the policyholder apply for reinstatement under A.R.S. 20-2604?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-2604 allows reinstatement of a variable life policy within 2 years from the date of premium default. This is a key product distinction: ordinary individual life reinstatement runs 3 years under A.R.S. 20-1213, while variable life is 2 years.
Why the other options are wrong
- B) 3 years is the reinstatement application window for ordinary individual life under A.R.S. 20-1213, not variable life.
- C) 6 months is the maximum loan-deferment period for policy loans, not a reinstatement window.
- D) No one-year reinstatement window exists for variable life under A.R.S. 20-2604.
Memory hook
Variable reinstates in 2; ordinary life in 3.