Arizona Laws 20-1621.02. Amount; term; coverage; prohibited practices
A. For credit property insurance sold in conjunction with a closed-end transaction, an insurer shall not:
Terms Used In Arizona Laws 20-1621.02
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Credit property insurance: means a policy of insurance that covers perils to goods purchased through a credit transaction or used as collateral for a credit transaction and that concerns a creditor's interest in the purchased goods or pledged collateral either in whole or in part. See Arizona Laws 20-1621.01
- Credit transaction: means a transaction in which the repayment of money loaned or credit commitment made or payment of goods, services or properties sold or leased is to be made at a future date. See Arizona Laws 20-1621.01
- Debtor: means the borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction. See Arizona Laws 20-1621.01
- Gross debt: means the sum of the remaining payments owed to a creditor by a debtor, including compensation, finance charges, interest or any other charges. See Arizona Laws 20-1621.01
- Policy: means a policy, contract, endorsement, binder, certificate or evidence of credit property insurance, by whatever name called, and includes all attached or incorporated clauses, endorsements and papers. See Arizona Laws 20-1621.01
- Property: includes both real and personal property. See Arizona Laws 1-215
1. Issue credit property insurance coverage unless the amount financed exceeds one hundred dollars.
2. Issue credit property insurance in an amount that exceeds the amount of the underlying credit transaction unless otherwise required by the laws of this state.
3. Sell credit property insurance with a term that exceeds in duration the scheduled term of the underlying credit transaction.
B. At a minimum, credit property insurance coverage shall include the coverages in the standard fire policy prescribed in section 20-1503 with coverage attachment and extended coverage endorsement.
C. Credit property insurance shall cover the possibility of an actual and substantial risk of loss of or damage to the property related to the credit transaction.
D. An insurer may not require the bundling of any other consumer credit insurance coverage with the purchase of credit property insurance coverage. A debtor may choose to purchase credit property insurance coverage separate from any other consumer credit insurance coverage.
E. An insurer shall not use gross debt as an exposure rating base in determining credit property insurance premiums.