State RegulationsAZ specificDifficulty 1/5
Under A.R.S. 20-1354, an insurer investigating a health claim may require a physical examination or autopsy of the insured as a condition of its liability. Who bears the cost?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-1354 lets the insurer require physical examinations and autopsies at its own expense as a condition of its liability on the claim. The insurer gains the medical evidence it needs to evaluate the claim, while the insured pays nothing for the examination the insurer chooses to demand.
Why the other options are wrong
- B) The statute places the expense on the insurer, not the insured.
- C) No cost-splitting provision exists in A.R.S. 20-1354.
- D) The physician is paid by the insurer requiring the examination, not by absorbing the cost as a courtesy.
Memory hook
Insurer wants the exam? Insurer pays.