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.
  • 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.