Ariz. Rev. Stat. § 20-1608 – Policy provisions and disclosures

A. Before a debtor elects to purchase consumer credit insurance, the following information shall be disclosed to the debtor in the manner provided in subsection C of this section:
1. 1. Purchase of consumer credit insurance is optional and not a condition of obtaining credit approval.
2. 2. If more than one kind of consumer credit insurance is being made available to the debtor, whether the debtor can purchase each kind separately or the multiple coverages only as a package.
3. 3. The conditions of eligibility.
4. 4. If the consumer has other life or disability insurance, the consumer may not want or need credit insurance.
5. 5. Within the first thirty days after receiving the individual policy or group certificate, the debtor may cancel the coverage and have all premiums paid by the debtor refunded or credited.
6. 6. A description of:
  1. (a) The amount.
  2. (b) The term if less than the term of the loan or extension of credit.
  3. (c) The premium rate for each coverage or for all coverages in a package.
7. 7. If the premium or insurance charge is financed, it will be subject to finance charges at the rate applicable to the credit transaction.
B. A person may combine the disclosures required by subsection A of this section with other disclosures required by the laws of this state or the federal government.
C. The disclosures required under subsection A of this section shall be provided in the following manner:
1. 1. For consumer credit insurance offered contemporaneously with the extension of credit or offered through direct mail advertisements, the disclosures shall be made in writing and presented to the consumer in a clear and conspicuous manner.
2. 2. For consumer credit insurance offered after the extension of credit by other than direct mail advertisements, the disclosures required by subsection A, paragraphs 1, 6 and 7 of this section may be provided orally or electronically if both of the following occur:
  1. (a) The following oral disclosure is also made to a debtor who elects to purchase any consumer credit insurance:
    You will be receiving important written information about the insurance you have chosen to purchase and your rights. We recommend that you read and carefully review this information as soon as you receive it.
  2. (b) Written disclosure of all information required by subsection A of this section is provided to the debtor no later than the earlier of either:
    1. (i) Ten days after the debtor elects coverage.
    2. (ii) The date any other written material is provided to the debtor.
D. All consumer credit insurance shall be evidenced by an individual policy or a group certificate of insurance that shall be delivered to the debtor.
E. In addition to other requirements of law, the individual policy or group certificate shall state all of the following:
1. 1. The name and home office address of the insurer.
2. 2. The name of the debtor, or, in the case of a group certificate, the identity by name or otherwise of the debtor.
3. 3. The premium or amount of payment by the debtor separately for each kind of coverage or for all coverages in a package, except that, for open-end loans, the premium rate and the basis of the premium calculation, such as average daily balance and prior monthly balance, shall be specified.
4. 4. A full description of the coverage or coverages, including the amount and term and any exceptions, limitations and exclusions.
5. 5. 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.
6. 6. If the scheduled term of insurance is less than the scheduled term of the credit transaction, a statement to that effect on the face of the individual policy or group certificate in not less than ten point bold face type.
F. Unless the individual policy or group certificate of insurance is delivered to the debtor at the time the debt is incurred, or at such other time that the debtor elects to purchase coverage, a copy of the application for the policy that is signed by the debtor or a notice of proposed insurance that sets forth the name and home office address of the insurer, the name of the debtor, the premium rate or amount of payment by the debtor for the insurance and the amount, term and a brief description of the coverage provided shall be delivered to the debtor at the time the debt is incurred or the election to purchase coverage is made. The copy of the application for, or notice of proposed insurance, shall also refer exclusively to insurance coverage and shall be separate and apart from the loan, sale or other credit statement of account, instrument or agreement, unless the information required by this subsection is prominently set forth therein. On acceptance of the insurance by the insurer and within thirty days of the date on which the debt is incurred or the election to purchase coverage is made, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor. The application or notice of proposed insurance shall state that on acceptance by the insurer, the insurance shall become effective as provided in section 20-1607.
G. The application, notice of proposed insurance or certificate may be used to fulfill all of the requirements of subsection A of this section and subsection E of this section if it contains all of the information required by those subsections.
H. The debtor has thirty days from the date that the debtor receives either the individual policy or the group certificate to review the coverage purchased. At any time within the thirty-day period, the debtor may contact the creditor or insurer issuing the policy or certificate and request that the coverage be cancelled. The individual policy or group certificate may require the request to be in writing or that the policy or certificate be returned to the insurer, or both. Within thirty days of the request, the debtor shall receive a full refund or credit of all premiums or insurance charges paid by the debtor.
I. If the insurer is not willing to insure the particular risk, another insurer may agree to accept the risk and be substituted for the original insurer. A substitute insurer shall provide the debtor with a policy or certificate of insurance stating the name and home office address of the substituted insurer and the amount of the premium to be charged. If the amount of premium is less than that stated in the notice of proposed insurance, an appropriate refund shall be made within thirty days. If no insurer accepts the risk, then all premiums paid shall be refunded or credited within thirty days of application to the person entitled to the refund.
J. For the purpose of subsection F of this section, an individual policy or group certificate delivered in conjunction with an open-end consumer credit agreement or any consumer credit insurance requested by the debtor after the date of the debt is deemed to be delivered at the time the debt is incurred or election to purchase coverage is made if the delivery occurs within thirty days of the date the insurance is effective.
K. An individual policy or group certificate delivered in conjunction with an open-end credit agreement continues from its effective date through the term of the agreement unless the individual policy or group certificate is terminated according to its terms at an earlier date.