MARVIN MANDEL, Governor

489

12-613. INSURANCE.

(A)   SCOPE OF SECTION.

THE PROVISIONS OF THIS SECTION ARE IN ADDITION TO
AND NOT IN SUBSTITUTION FOR ANY OTHER APPLICABLE
PROVISION OF STATUTORY LAW.

(B)   PREMIUM.

IF A HOLDER UNDERTAKES AT THE EXPENSE OF THE BUYER
TO SELL, PURCHASE, OR SUPPLY INSURANCE ON THE GOODS SOLD,
THE AMOUNT CHARGED THE BUYER FOR THE INSURANCE MAY NOT
EXCEED THE LESSER OF:

(1)    THE PREMIUM ACTUALLY PAYABLE BY THE
HOLDER; OR

(2)    THE RATE CHARGED FOR SIMILAR INSURANCE
COVERAGE BY THOSE COMPANIES WHOSE RATES ARE PROMULGATED
BY A NATIONALLY RECOGNIZED ORGANIZATION OF UNDERWRITERS.

(C)   COPY OF CHARGES TO BE MAILED BUYER; DESCRIPTION
OF COVERAGE.

(1)   IF THE BUYER IS CHARGED FOR INSURANCE,
THE HOLDER SHALL DELIVER OR MAIL TO THE BUYER AT HIS
ADDRESS SHOWN ON THE AGREEMENT, WITHIN 25 DAYS AFTER
DELIVERY OF THE GOODS, A COPY OF EACH INSURANCE POLICY OR
AN OWNER'S CERTIFICATE REPRESENTING THE POLICY, WHICH
SETS FORTH:

(i) THE AMOUNT OF THE PREMIUM, TYPE OF
INSURANCE, SCOPE OF COVERAGE, AND EACH TERM, EXCEPTION,
LIMITATION, RESTRICTION, AND CONDITION OF THE INSURANCE
CONTRACT; AND

(ii) IF THE GOODS SOLD INCLUDE A MOTOR
VEHICLE, A DEFINITE STATEMENT IN 12-POINT BOLD TYPE OR
LARGER AS TO WHETHER THE INSURANCE INCLUDES COVERAGE FOR
PERSONAL LIABILITY AND FOR PROPERTY DAMAGE CAUSED TO
OTHERS.

(2)    IF THE HOLDER ASSIGNS THE AGREEMENT AND
HAS NOT COMPLIED WITH THE REQUIREMENTS OF THIS
SUBSECTION, THE ASSIGNEE SHALL DELIVER OR MAIL IN LIKE
MANNER TO THE BUYER THE COPY OR CERTIFICATE, WITHIN THE
SAME PERIOD OR WITHIN FIVE DAYS AFTER THE ASSIGNMENT,
WHICHEVER IS LATER.

(D) CANCELLATION, REFUNDS, AND DIVIDENDS.

EACH CANCELLATION, SURRENDER, OR OTHER REFUND AND
EACH DIVIDEND RECEIVED UNDER THE INSURANCE POLICY BY THE