What is one key requirement for a life insurance policy in Arizona?

In Arizona, one of the key requirements for a life insurance policy is that it must include a "free-look" period for the policyholder. This provision allows individuals who purchase life insurance the opportunity to review their policy after signing it. During this period, typically lasting 10 to 30 days, the policyholder can cancel the insurance contract if they find it unsatisfactory or if their circumstances have changed since the purchase. This requirement is significant as it protects consumers by providing them a window to reconsider their decision without facing penalties or losing their premium.

The "free-look" period is designed to ensure that insured individuals fully understand the terms and conditions of their life insurance before committing to it long-term. It can help prevent regrets from hasty decisions and promotes consumer confidence in the insurance market.

While the inclusion of a death benefit is a standard aspect of life insurance policies, it is not exclusive to Arizona and is expected universally in life insurance contracts. Coverage limited solely to accidental death does not meet the broader definition of life insurance, and annual reviews, while beneficial for policyholders, are not mandated by law. Therefore, the emphasis on the "free-look" period establishes an important consumer protection mechanism in Arizona's insurance regulations.