Life Insurance in Arizona
Arizona, like most states, does not regulate life insurance on the policy level the way that state Departments of Insurance regulate other insurance such as health or auto. However, there are certain provisions that do vary from state to state regarding free-look time frames, illustration requirements, underwriting and medical exam requirements.
You should be aware of these rules as you shop for this product in Arizona.
Why do I need life insurance?
With life insurance coverage, you can feel secure knowing that your beneficiaries will have some help covering your final expenses and other financial needs they’ll face without you.
Arizona was ranked 18th out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 79.58 years. With this in mind, people living in Arizona may want to consider their life insurance options.
Arizona life insurance specifics
The insurance industry in Arizona is regulated by The State Insurance Code of Arizona. The state uses this code to regulate claims and provide certain provisions to protect Arizona life insurance consumers, such as:
- Grace Period
Life insurance companies in Arizona are required to give you a grace period on late premium payments. You are given at least 30 days after your premium payment due date to make the payment without your policy being cancelled for non-payment.
Arizona companies offering life products are also protected to some degree by state statutes. These regulations are put in place to prevent insurance fraud. Insurance fraud is a serious crime and affects the rates everyone in Arizona pays for their policies.
Arizona life insurance state resources
Arizona Department of Insurance
The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers.
www.id.state.az.us
Arizona Corporation Commission
The commission oversees securities and investment products.
www.azcc.gov/divisions/securities
Arizona Life and Health Insurance Guaranty Fund
State guaranty associations are there to provide coverage protection in the event that an insurance company becomes insolvent.
Arizona Life & Disability Insurance Guaranty Fund
1110 West Washington, Ste 270
Phoenix, AZ 85007
(602) 364-3863
Life Insurance Company Ratings From A.M. Best
A.M. Best provides ratings for life insurance companies based on financial strength and past performance.
www.ambest.com
