| (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.
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