Purchase and sale of insurance.

(a) Purchase of insurance by debtor shall be voluntary.

(b) Policies of insurance shall not be sold if debtor has valid and collectible insurance on the same collateral to offer to the creditor and a loss payable endorsement is provided to the creditor for its protection. In the case of a credit transaction sale, or a transaction involving a debtor pledging personal property as collateral, no policies of insurance shall provide in any one kind of coverage an amount which exceeds the price of the personal property purchased in a time sales finance transaction, or the lesser of the amount of the cash proceeds or the actual cash value of the personal property offered as security or pledged as collateral. No debtor’s policy of insurance shall be extended beyond the time period of the loan or financial arrangement unless at the written request of the insured debtor. If the insured debtor does not so request in writing an extension of the insurance policy term, a pro rata refund of the premium shall be made by the insurer or creditor to the debtor when the indebtedness is discharged by prepayment or otherwise prior to the expiration of the term of the insurance policy.