State RegulationsAZ specificDifficulty 2/5
Which statement correctly describes the application of the Arizona life insurance grace period under A.R.S. 20-1203?
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 A is correct
A.R.S. 20-1203 grants the grace period for any premium after the first, and it expressly continues coverage during grace. The first premium must be paid to put the policy in force, and the grace protection then attaches to every subsequent premium regardless of premium mode.
Why the other options are wrong
- B) The initial premium is not covered by grace; the statute applies only to premiums after the first.
- C) Coverage continues during the grace period under A.R.S. 20-1203; it is not suspended.
- D) The life grace period is not mode-based; it applies to the same 30-day length whatever the premium mode.
Memory hook
First premium down, then 30 days of grace every time.