Arizona § 20-1606 - Maximum amount of credit disability insurance and credit unemployment insurance
Full text of Arizona Arizona Revised Statutes § 20-1606 — Maximum amount of credit disability insurance and credit unemployment insurance, with citation guidance and answers to common questions.
§ 20-1606. Maximum amount of credit disability insurance and credit unemployment insurance
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.
Source: official Arizona text · Last verified 2026-08-27
Frequently Asked Questions About Arizona § 20-1606
What does Arizona Revised Statutes § 20-1606 cover?
Section 20-1606 ("Maximum amount of credit disability insurance and credit unemployment insurance") is part of the Arizona Revised Statutes, the codified statutory law of Arizona. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arizona § 20-1606?
A common citation format is "Arizona Revised Statutes § 20-1606" (Arizona). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arizona law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arizona official source linked on this page or consult a licensed Arizona attorney.
How does Arizona § 20-1606 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arizona can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arizona.