If you are planning on buying life insurance in Arizona, here is some important information you may need.  Even if you already own life insurance you may be unaware of the laws and regulations governing life insurance in Arizona.  This is what every policy holder and prospective policy holder needs to know.

Arizona Rules and Regulations

Arizona life insurance is regulated under section 20 of the Arizona Statutes.  This regulation protects policyholders.

Free Look

arizonaIn Arizona there is no mandatory free look period.  This is important for policyholders to know, as all sales may be final and consumers may not be able to get a refund if they decide they don’t want the policy after all, after it has been delivered.  While the free look period is not mandatory by law, most insurance companies will provide a “reasonable period”, where a policy can be returned with a refund.  This time period ranges from 7 days to 30 days, depending on the company.  Always check with an insurance company before you purchase a policy to find out how they handle policy returns.

Grace Period

Arizona allows a grace period of 30 days.  This allows policy holders to be late up to 30 days on a premium payment, and the policy will not lapse.  This protects beneficiaries from missing out on potential death benefit payouts because of a slightly late payment.


The Arizona Life and Disability Insurance Guaranty Fund will guarantee up to $100,000 of cash value, and $300,000 of death benefits per person, if an insurance company becomes insolvent.  This protects policy holders to some extent from irresponsible insurers, but if your policy is larger than $300,000 or if you have multiple policies, beneficiaries will miss out on any benefits greater than $300,000.

Timely Payment

Arizona requires your life insurance provider to pay out all claims in a timely manner.  Most claims are paid within a two month period, and often faster.  Failure to do so by the insurance company can result in large fines against the company.

Protection Of Personal Information

State law in Arizona requires all life insurance companies to protect their client’s privacy.  This means that companies can not release any personal information, including health information, without consent of the client.

Arizona Department of Insurance

Telephone:  800-325-2548


Arizona Life & Disability Insurance Guaranty Fund

2910 N. 44th Street, Suite 210

Phoenix, AZ 85018

Telephone:  800-325-2548