Arizona Life and Health Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The correct duration for contesting an individual life insurance policy by the insurer is two years. This period is defined by the Arizona and many other states' Unfair Claims Settlement Practices regulations. The rationale behind this time frame is to ensure that policyholders have a degree of security in their coverage after a reasonable amount of time has passed since the policy was issued.

The two-year contestability period allows insurers to investigate and contest claims based on misrepresentations or omissions made during the application process. However, after this period, the insurer typically cannot deny a claim on those grounds, provided the policyholder has maintained their premiums and the policy remains in force. This provision is designed to prevent insurers from indefinitely delaying the payout of claims, thus providing some level of assurance and stability for policyholders and beneficiaries.

While the options indicate different time frames, the two-year window is the standard recognized across many jurisdictions for contesting life insurance policies.