Commercial automobile, fire, or liability insurance -- Discrimination against premium financing; disclosure of interest in motor club.

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    (a)    An insurer that markets through independent insurance producers as defined in this article may not discriminate, intimidate, or retaliate against an insurance producer or insured that uses premium financing by denying the insurance producer or insured the same rights accorded to insurance producers or insureds who pay premiums in a different manner.

    (b)    With respect to personal lines automobile insurance, an insurance producer, who directly or indirectly has an ownership interest in a premium finance company, shall provide a disclosure to be signed by the insured comparing the costs and terms of premium financing with the insurer’s alternative payment plan.

    (c)    The disclosure required by subsection (b) of this section shall:

        (1)    state the total amount to be paid by the insured under the premium finance agreement during the policy term, including premium, any down payment, and all interest, fees, and charges incident to the premium finance agreement and resulting extension of credit; and

        (2)    state the total amount to be paid by the insured under the insurer’s alternative payment plan during the policy term, including premium, any down payment, and all fees and charges incident to the alternative payment plan.

    (d)    An insurance producer, or an employee or agent of the insurance producer, who directly or indirectly has an ownership interest in a motor club shall provide a disclosure to be signed by the insured informing the insured of the insurance producer’s or the insurance producer’s employee’s or agent’s interest in the motor club.


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