Who regulates your policy in Arizona
Insurance is regulated state by state, so your policy is governed by Arizona law and overseen by the Arizona Department of Insurance and Financial Institutions — not by a federal agency. It licenses the agent who sells to you and handles complaints if something goes wrong.
Two things worth doing before you sign: verify your agent's license is active in Arizona, and keep the consumer line (602-364-2499) on hand. Both are free, and an agent not licensed in your state is a hard stop.
Your window to cancel in Arizona
We could not confirm a fixed statutory free-look period for life policies in Arizona. Many states set a range the insurer chooses from rather than one mandated number, so the period that binds you is the one printed in your own contract. Confirm it in writing before the policy is issued.
If a carrier fails in Arizona
If your carrier became insolvent, the Arizona Life and Disability Insurance Guaranty Fund is the backstop. In Arizona it covers a death benefit up to $300,000 and cash surrender value up to $100,000. Those are separate ceilings, so an IUL's accumulated cash value is protected independently of the death benefit.
This protection is not a reason to skip carrier due diligence. It caps what you would recover, and a policy designed above that cap leaves the excess exposed.
What Arizona adds to the cost
Arizona levies a state premium tax of 1.7% on life insurance premiums. That sits below the 2% median of the 50 states covered here. You do not pay it as a separate line item — carriers price it into the premium, which is part of why the same policy design can cost differently across state lines.