Arizona Laws 20-1605. Maximum amount of credit life insurance
A. The initial amount of credit life insurance shall not exceed the gross debt.
Terms Used In Arizona Laws 20-1605
- Credit life insurance: means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction that provides for the satisfaction of a debt, in whole or in part, on the death of an insured debtor. See Arizona Laws 20-1603
- Creditor: means the lender of money or vendor or lessor of goods, services, property, rights or privileges, including a lessor under a lease intended as a security, where payment is arranged through a credit transaction. See Arizona Laws 20-1603
- Gross debt: means the sum of the remaining payments that a debtor owes a creditor. See Arizona Laws 20-1603
- Loan: means an advance or commitment of certain funds pursuant to a repayment agreement. See Arizona Laws 20-1603
B. If a debt is repayable in substantially equal installments, the amount of insurance shall at no time exceed the scheduled or actual amount of the gross debt, whichever is greater.
C. Notwithstanding subsections A and B, credit life insurance in connection with a loan not exceeding one year in duration, or pursuant to a bank or financial institution loan checking account or revolving line of credit plan, may be issued or made effective on a nondecreasing or level term plan in an amount not in excess of the loan. Credit life insurance on an educational transaction commitment may be issued or made effective in an amount which includes that portion of the commitment not yet advanced by the creditor.