State RegulationsAZ specificDifficulty 2/5
A producer in Arizona tells an applicant that a key coverage term will be 'worked around' and writes the promise on a separate sheet that is never attached to the policy. Under A.R.S. 20-1205, what is the effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under A.R.S. 20-1205, the policy plus the attached application is the entire contract, and only the insurer's officers may change or waive its terms. A producer's side sheet cannot amend the contract, so the promise has no legal effect.
Why the other options are wrong
- A) Producers lack authority to change or waive policy terms; that power rests with the insurer's officers.
- C) There is no lapse-of-time cure that incorporates an unauthorized side agreement.
- D) Premium acceptance does not validate a change made outside the contract.
Memory hook
Only officers can touch the contract - agents cannot.