iPhone 11 Pro What happens to AppleCare after paying off iPhone Upgrade Program?

[joro]

I recently upgraded to the iPhone 11 Pro Max (loving it by the way) and was unable to do the IUP again since we had switched our wireless account to a business one, so I ended up doing carrier financing for the new phone. That said, I still have the iPhone XS Max on the IUP which has about a year left in payments. I was considering selling it and using the proceeds to pay off the existing loan but I noticed a weird clause in the Terms & Conditions related to AppleCare, specifically:

8. Termination of the AppleCare+ Plan.

You understand that you have purchased an AppleCare+ plan with funds borrowed from Bank under an Installment Loan. If the AppleCare+ plan associated with your iPhone Upgrade Program is returned or terminated for any reason, including when you exercise your Upgrade Option, any refund due on your AppleCare+ plan will be remitted to the Bank as a payment toward any amount owed by you to Bank. If you do not cancel AppleCare+ on your own, you agree that the Bank is permitted to cancel AppleCare+ on your behalf. If the AppleCare+ refund amount is greater than the amount owed on the Installment Loan, Bank will issue you a refund in the amount of the difference to the credit or debit card you used to enroll in the iPhone Upgrade Program.

I'm not sure if paying off the loan in full qualifies as a "return" or "termination" - it doesn't seem to - but wanted to know if anyone had any experience with this? After paid off would the AppleCare still run through the original term (September 2020) or would it cancel immediately? If cancelled immediately, am I able to extend that covereage since it's past the 30 or 60 day window?

Thanks,