State RegulationsAZ specificDifficulty 2/5
Under A.R.S. 20-1346, what is the effect of the 2-year time limit on certain defenses in an individual health policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under A.R.S. 20-1346, after 2 years from the issue date of the policy no misstatement made by the applicant — except fraudulent misstatement — can void the coverage or be used to deny a claim. The provision gives Arizona insureds stability: honest errors in the application cannot be weaponized against them indefinitely.
Why the other options are wrong
- B) The whole point of the statute is to cut off misstatement defenses after 2 years, except fraud.
- C) The limit covers misstatements generally, not just occupation statements.
- D) The 2-year clock runs from the policy issue date, not from the first claim.
Memory hook
Two years locks the application — fraud is the only key.