It is enacted by the General Assembly as follows:

SECTION 1. Chapter 27-8 of the general laws entitled "Casualty Insurance Generally" is hereby amended by adding thereto the following section:

{ADD 27-8-18. Debtor's right to deductible election. -- ADD} {ADD Any debtor receiving financing for the purchase of a motor vehicle from any institution or person or other entity shall have an absolute election to choose a deductible of up to five hundred ($500.00) dollars for collision or limited collision coverage, and any and all contrary provisions in an insurance policy or financing agreement shall be null and void. ADD}

SECTION 2. This act shall take effect upon passage.