State RegulationsAZ specificDifficulty 2/5
Which set of requirements applies to reinstating a lapsed Arizona life policy under A.R.S. 20-1213?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1213 spells out the reinstatement package: a written application, evidence of insurability satisfactory to the insurer, all overdue premiums with interest, and repayment of any policy debt. Coverage is not automatic; the insured must re-earn it by proving insurability and clearing every arrears item on the account.
Why the other options are wrong
- B) evidence of insurability is required; paying the overdue premium alone is insufficient.
- C) reinstatement restores the existing policy; it is not a new application with a new free look.
- D) beneficiary consent plays no role in reinstatement.
Memory hook
Apply, prove, pay, plus the debt.