Arizona Revised Statutes Title 20, Secs. 20-1602 onward: Consumer Credit Insurance

What this document is

Arizona Revised Statutes Title 20, Secs. 20-1602 onward - Consumer Credit Insurance is a state statute published by Arizona State Legislature (azleg.gov). It is one of the Arizona documents that insurance license exam questions are written from, including arizona life & health, arizona property & casualty, arizona personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• A.R.S. Title 20 § 20-1606(B)(2) (Maximum amount of credit disability and credit unemployment insurance)

  “An insurer may offer credit disability insurance with a periodic or lump sum indemnity that exceeds the creditor's minimum repayment schedule if no single indemnity exceeds the net debt.”

• A.R.S. Title 20 § 20-1603(4) (Definitions: credit unemployment insurance)

  “"Credit unemployment insurance" means casualty insurance on a debtor to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed as defined in the policy.”

• A.R.S. Title 20 § 20-1613(C) (Reporting and Settlement of Claims)

  “No plan or arrangement shall be used whereby any person, firm or corporation, other than the insurer or its designated claim representative, shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims.”

• A.R.S. Title 20 § 20-1608(E)(5) (Policy Provisions and Disclosures)

  “A statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid debt and, whenever the amount of insurance benefit exceeds the unpaid debt, that any excess shall be payable to a beneficiary, other than the creditor, named by the debtor or to the debtor's estate.”

• A.R.S. Title 20 § 20-1605(A)-(B) (Maximum amount of credit life insurance)

  “A. The initial amount of credit life insurance shall not exceed the gross debt. 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.”

• A.R.S. Title 20 § 20-1611(B) (Refunds)

  “If a creditor requires a debtor to make any payment for consumer credit insurance and an individual policy or group certificate is not issued, the creditor shall immediately give written notice to the debtor and shall promptly make an appropriate refund to the debtor or credit the debtor's account.”

• A.R.S. § 20-1631(C) (Definition of motor vehicle; cancellation of or failure to renew coverage; limitations)

  “C. An insurer shall not cancel or refuse to renew a motor vehicle insurance policy solely because of the location of residence, age, race, color, religion, sex, national origin or ancestry of anyone who is an insured, except that an insurer may refuse to renew a motor vehicle insurance policy if a...”

• A.R.S. § 20-1631(F) (Definition of motor vehicle; cancellation of or failure to renew coverage; limitations)

  “The written agreement that excludes coverage under a policy for a named individual is effective for each renewal of the policy by the insurer and remains in effect until the insurer agrees in writing to provide coverage for the named individual who was previously excluded from coverage.”

• A.R.S. § 20-1632(B) (Cancellation, nonrenewal and reduction of limits for reasons other than nonpayment of premium)

  “B. Failure of the insurer to comply with subsection A of this section shall invalidate any cancellation, nonrenewal or reduction in limits of liability or coverage.”

• A.R.S. § 20-1652(B) (Grounds for valid notice of cancellation; inquiries; definitions)

  “B. If nonrenewal is based on the condition of the premises, the insured shall be given thirty days' notice to remedy the identified conditions. If the identified conditions are remedied, coverage shall be renewed. If the identified conditions are not satisfactorily remedied, the insured shall be...”

• A.R.S. § 20-1652(A) (Grounds for valid notice of cancellation; inquiries; definitions)

  “A. After a policy has been in effect for sixty days or, if the policy is a renewal, effective immediately, a notice of cancellation is not effective unless it is based on the occurrence, after the effective date of the policy, of one or more of the following: 1. Nonpayment of premium. 2. Conviction...”

• A.R.S. § 20-1676(C) (Notice of nonrenewal)

  “C. Notice of nonrenewal is not required if either of the following occurs: 1. The insurer or a company within the same insurance group has offered to issue a renewal policy. 2. The named insured has obtained replacement coverage or has agreed in writing to obtain replacement coverage.”

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More Arizona sources

• Ariz. Rev. Stat. s. 20-443: Misrepresentations and false advertising of policiesState statute
• Ariz. Rev. Stat. s. 20-295: License denial, suspension, or revocation; civil penaltyState statute
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• A.R.S. Title 20, Chapter 2, Article 2 - Unfair Trade Practices (Secs. 20-441 through 20-462)State statute
• Arizona Revised Statutes Title 20, Chapter 1 - General Provisions (Secs. 20-101 through 20-191)State statute
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