State RegulationsAZ specificDifficulty 2/5
An agent in Tucson tells an applicant that an exclusion in her health policy will never be enforced and encourages her to rely on that promise. Under A.R.S. 20-1345, what is the legal effect of the agent's statement?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-1345 makes the policy plus attached papers the entire contract and provides that no agent is authorized to waive or alter its terms. The Tucson applicant cannot enforce the agent's side promise; only the written contract documents control the coverage the insurer must provide.
Why the other options are wrong
- A) Even though the agent acts for the insurer, the statute specifically withholds authority to waive policy terms.
- C) Premium payment does not transform an agent's extra-contractual promise into an enforceable term.
- D) Repeating the statement in a brochure does not make it part of the entire contract under A.R.S. 20-1345.
Memory hook
Agents can promise the moon — only the contract counts.