(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."
(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.
(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.
(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