Although state law does not provide for continuation, most health policies must allow dependents to convert to their own individual policy following the death or divorce of the named insured. Dependents have the right to convert to an individual policy when group coverage ends for any reason except failure to pay a premium (AZ Stat. Sec. 20-1408). However, conversion does not have to be offered if the spouse or child is (1) eligible for Medicare or (2) eligible for similar benefits under another policy, and the combination of those benefits with the converted policy would result in overinsurance.
The covered person must apply in writing for the converted policy and pay the first premium within 31 days after termination of group coverage.