Arizona Laws 20-1621.08. Claims
A. A creditor shall promptly report all claims to the insurer or its designated claim representative.
Terms Used In Arizona Laws 20-1621.08
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Creditor: means the lender of money or the vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, or any successor to the right, title or interest of a lender, vendor or lessor and an affiliate, associate or subsidiary of any of them, any director, officer or employee of any of them or any person in any way associated with any of them. 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
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- 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
B. All claims shall be paid either by draft drawn on the insurer, by electronic funds transfer, by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions or on direction of the claimant to the party specified by the claimant.
C. A person shall not authorize a person, firm or corporation, other than the insurer or its designated claim representative, to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims, except that once the amount is determined, a group policyholder, by arrangement with the group insurer, may draw drafts, checks or electronic transfers in payment of claims due to the group policyholder subject to audit and review by the insurer.
D. A person shall not deny a claim because the debtor was ineligible for coverage later than ninety days after the initiation of coverage unless the debtor misrepresented a material fact. If a claim is denied because the debtor was ineligible for coverage within ninety days of initiation of coverage or because the debtor misrepresented a material fact for coverage, the insurer shall refund to the debtor all premiums paid and the creditor shall refund any finance charge paid on the premiums.