Arizona Life Insurance

Arizona life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Arizona life insurance regulations.

  • Explains the protection of the Arizona Guaranty Association.

  • Links to more information about life insurance in Arizona

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Arizona life insurance rights and regulations

The insurance industry in Arizona is regulated under Title 20 of the Arizona Revised Statutes. Through these laws, the state oversees claims procedures and policy requirements in order to protect you, the consumer.

Under the code, insurance companies are required to allow a grace period of 30 days for payment of late premiums. This means that, should you miss a premium, you have one month to make your account current before the insurance company is allowed to cancel your policy.

Arizona law also states that life insurance settlements should be made upon receipt of proof of death and should never take longer than 2 months to finalize. If the death benefit is not received by the policy's beneficiaries in a timely manner, the proceeds may begin to collect interest.

(A detailed description of the specific claims procedure followed by your insurance company will be included within the text of your life insurance policy.)

Arizona law also prohibits insurance companies from disclosing any personal or privileged information about an individual collected or recieved in connection with an insurance transaction, unless given permission to do so.

However the code also protects insurers against consumer deception. Insurance companies may contest statements made in the application for up to two years from the effective date of the policy. Misstatements are grounds for cancelling coverage.

Misstatement of age, however, can be corrected at any point during the life of the policy. In this case, the death benefit will be adjusted to reflect the actual age of the insured.

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If you are ready to apply for an Arizona term life insurance policy, or if you just want a quick online quote, visit Netquote now.
If you are not sure about what type of life coverage you want, you can also try Insurecom. They will put you in touch with agents who can answer any questions that you might have.

The Arizona Life Insurance Guaranty

Licensed insurance companies in Arizona are required to pay annual fees to a state-run organization that protects policyholders. This organization is the Arizona Life and Disability Insurance Guaranty Fund, and it helps compensate policyholders for the loss of death benefits and cash values should the insurer become insolvent.

This protection does have limits, though. In Arizona the maximum per person death benefit compensation is $300,000 and the per person net cash surrender or net cash withdrawal maximum is $100,000. So even if you own two insurance policies with a higher total coverage, the $300,000 for death benefits or $100,000 for cash surrender or withdrawal still apply.

The Life Insurance Guaranty Association also only provides protection to policyholders of licensed insurance companies, so make sure your insurance company is licensed and covered. You can verify any company's status by calling the Arizona Insurance Department at (602) 912-8401.

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Apply for a quote with confidence at Netquote
(for Arizona term life insurance), or Insurecom.
Your insurer will be licensed in Arizona.

Viatical settlements in Arizona

Viatical settlements, which are written purchasing agreements between an insured and a viatical agent, are regulated in Arizona. These settlements allow the agent to buy an insured's life insurance policy, pay its premiums, and become the policy beneficiary. Check with an agent before you arrange a this type of settlement.

More AZ life insurance help

If you want more help getting the best value on your AZ life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about AZ life insurance laws and regulations, visit the state's official website at the State of Arizona Department of Insurance.

For more help . . .

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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