1. (a) This section applies only to a provider who sells or issues service contracts that provide a depreciation benefit optional member program as described by Texas Occupations Code §1304.003(a)(2)(C). For purposes of this section, these service contracts are referred to herein as "depreciation benefit service contracts."
2. (b) A provider or its dealers may not require the purchase of a depreciation benefit service contract as a condition of approval of a loan for the purchase of a vehicle.
3. (c) A depreciation benefit service contract may not be offered by a dealer who requires a loan for the purchase of a vehicle to be financed exclusively with the dealer.
4. (d) The fee or purchase price that is charged for a depreciation benefit service contract must be reasonable in relation to the benefit provided by the depreciation benefit service contract.

Source Note:The provisions of this §77.26 adopted to be effective July 1, 2018, 43 TexReg 3873.