A. All consumer credit insurance issued, sold or made effective in connection with a loan or other credit transaction for personal, family or household purposes is subject to this article and to all other provisions of this title not inconsistent with this article. Any provision of other law, general or special, that is inconsistent with this article is repealed to the extent of the inconsistency. In addition, all consumer credit insurance issued or made effective relative to consumer lender loans under Title 6, Chapter 5 is subject to this article.

Terms Used In Arizona Laws 20-1602

  • Consumer credit insurance: means any one or a combination of the following:

    (a) Credit life insurance. 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
  • Debtor: means a borrower of money or a person possessing a commitment for a loan of certain funds or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction. See Arizona Laws 20-1603
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Identifiable charge: means a charge for a type of consumer credit insurance that is made to debtors having that insurance and not made to debtors not having the insurance, and that includes a charge for insurance that is disclosed in the credit or other instrument furnished to the debtor that states the financial elements of the credit transaction and any difference in the finance, interest, service or other similar charge made to debtors in like circumstances except for the insured or noninsured status of the debtor or of the property used as security for the credit transaction. See Arizona Laws 20-1603
  • Loan: means an advance or commitment of certain funds pursuant to a repayment agreement. See Arizona Laws 20-1603
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

B. The following consumer credit insurance transactions are not subject to this article:

1. Insurance on credit transactions of more than fifteen years duration.

2. Insurance written in connection with a credit transaction that is secured by a first mortgage or deed of trust and made to finance the purchase of real property or the construction of a dwelling or to refinance a prior credit transaction made for such a purpose.

3. Insurance sold as an isolated transaction on the part of the insurer and not related to an agreement or a plan for insuring debtors of the creditor.

4. Insurance for which no identifiable charge is made to the debtor.

 

 

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