Finance or other charge or cancellation related to motor club service contracts prohibited.

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    (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.


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