Nothing in this article shall prevent a mortgagee, lender, vendor, or holder from requiring insurance on the collateral security for a loan or exercising a reasonable privilege of approval or disapproval of the insurance provided for such purpose by the borrower, mortgagor or purchaser.
Reasonable requirements of security holder are valid
A.R.S. § 20-475 — under Insurance on Collateral Security.
A.R.S. § 20-475