Arizona § 20-1606 Maximum amount of credit disability insurance and credit unemployment insurance

Arizona Statutes

§ 20-1606 — Maximum amount of credit disability insurance and credit unemployment insurance

Arizona § 20-1606

Title 20Arizona Revised Statutes

Ch. 6PARTICULAR TYPES OF INSURANCE

Art. 10Consumer Credit Insurance

This text of Arizona § 20-1606 (Maximum amount of credit disability insurance and credit unemployment insurance) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 20-1606 (2026).

Text

A.The total amount of periodic indemnity payable by credit disability insurance in the event of disability, as defined in the policy, or credit unemployment insurance, in the event of unemployment, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the gross debt or, with respect to group insurance where the indebtedness is repayable in installments, the maximum sum permitted by section 20-1401. The amount of each periodic indemnity payment shall not exceed the original gross debt divided by the number of periodic installments.

B.Notwithstanding subsection A of this section:

1.For credit disability insurance or credit unemployment insurance written in connection with an open-end credit agreement, the amount of insurance shall not

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A. The total amount of periodic indemnity payable by credit disability insurance in the event of disability, as defined in the policy, or credit unemployment insurance, in the event of unemployment, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the gross debt or, with respect to group insurance where the indebtedness is repayable in installments, the maximum sum permitted by section 20-1401. The amount of each periodic indemnity payment shall not exceed the original gross debt divided by the number of periodic installments.

B. Notwithstanding subsection A of this section:

1. For credit disability insurance or credit unemployment insurance written in connection with an open-end credit agreement, the amount of insurance shall not exceed the gross debt which would accrue on that amount using the periodic indemnity. Subject to any policy maximums, the periodic indemnity shall not be less than the creditor's minimum repayment schedule.

2. 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.