(a) Compliance with law.--The following shall comply with the act of September 2, 1961 (P.L.1232, No.540), known as the Model Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance:
(1) The seller and buyer, if:
(i) the cost of the insurance is included in the closed-end credit agreement; and
(ii) a separate charge is made to the buyer for the insurance.
(2) The seller or holder, if the insurance is to be procured by the seller or holder under an open-end credit agreement.
(b) Separate charge; agreement.--
(1) If the cost of insurance is to be separately charged to the buyer under an open-end credit agreement, the buyer and seller must so specify in a signed agreement.
(2) A copy of the agreement under paragraph (1) shall be given or furnished to the buyer.
(3) The agreement shall state whether the insurance is to be procured by the buyer, seller or holder.
Cross References. Section 6342 is referred to in sections 6302, 6327, 6347 of this title.
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