Section R20-4-534. Insurance

A.      A licensee shall obtain written evidence of the borrower’s vol-

untary election to purchase insurance in connection with a loan if the licensee’s sale of insurance to the borrower is intended to secure repayment of a loan. The licensee shall retain this evi- dence of voluntary election in its records as required by stat- ute. A document sufficient to comply with this Section shall read as follows:

TO SECURE REPAYMENT OF MY LOAN, I ELECT TO PURCHASE INSURANCE IN THE AMOUNT OF

$                         .

I UNDERSTAND THAT MY TOTAL LOAN OBLIGA- TION IS THE SUM OF $   .

B.       A licensee shall obtain written evidence of the borrower’s vol- untary election to purchase property insurance in connection with a loan if the licensee’s sale of property insurance to the borrower is intended to secure repayment of a loan. The licensee shall retain this evidence of voluntary election in its records as required by statute. A document sufficient to com- ply with this Section shall read as follows:

TO SECURE REPAYMENT OF MY LOAN, I ELECT TO PURCHASE PROPERTY INSURANCE IN THE AMOUNT OF $                                                    .

I UNDERSTAND THAT MY TOTAL LOAN OBLIGA- TION IS THE SUM OF $   .

I ATTEST THAT THE VALUE OF MY PROPERTY INSURED IN CONNECTION WITH THIS LOAN IS THE SUM OF $                                                   .

Historical Note

Former Rule 34. R20-4-534 recodified from R4-4-534 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R.

4605, effective November 14, 2000 (Supp. 00-4).