Arizona Health Insurance Practice Exam

A health insurance claim may be contested due to statements made on the application for up to how many years after issuance of the policy?

1. 1 year

2. 2 years

3. 3 years

4. 5 years

The correct answer is: 2 years

A health insurance claim may be contested due to statements made on the application for up to two years after the issuance of the policy. This time frame is rooted in the principle of ensuring that both the insurer and the insured have a reasonable amount of time to address any issues relating to the accuracy and honesty of the information presented during the application process. After this two-year period, insurers generally lose the ability to contest the claim based on misrepresentations or fraudulent statements, promoting the stability and reliability of the insurance coverage for policyholders. This regulatory guideline is designed to protect consumers and encourage full disclosure while providing a fair and equitable approach to claims handling.