- (a) A premium finance company may not impose any finance charge or other charge on any payment for the purchase price of a motor club service contract.
(b) A premium finance company may not cancel an insurance contract if any payment under the premium finance agreement:
- (1) is sufficient to pay the installment due under the premium finance agreement that is related to the insurance contract obligation; but
- (2) is not sufficient to cover the amount of the monthly payment for the motor club service contract.
Added by Acts 2013, c. 334, § 1, eff. July 1, 2013.