State RegulationsAZ specificDifficulty 3/5
The fresh contestable window following reinstatement of an Arizona life policy has run. The insurer now learns the insured made fraudulent statements in the reinstatement application. What is the insurer's position under A.R.S. 20-1227 and A.R.S. 20-1204?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A.R.S. 20-1227 confines contest of a reinstated policy to the same window the policy gives after issue, and A.R.S. 20-1204 permits post-window contest only for nonpayment of premiums. Once the fresh window runs, even fraud in the reinstatement application can no longer support a contest.
Why the other options are wrong
- A) There is no perpetual fraud right; the contest window from A.R.S. 20-1227 applies to reinstatement-related fraud.
- B) Reinstatement-related fraud does not carry an unlimited time limit; it must be raised within the fresh window.
- C) Prospective cancellation is not the statutory mechanism, and the claim itself can no longer be contested on the fraud ground.
Memory hook
Fresh window after reinstatement - then only nonpayment speaks.