Utah Code 31A-6b-303. Cancellation or termination of a guaranteed asset protection waiver

(1)

Terms Used In Utah Code 31A-6b-303

Administrator: means the same as that term is defined in Subsection (182). See Utah Code 31A-1-301
Contract: A legal written agreement that becomes binding when signed.
Creditor: means a person, including an insured, having a claim, whether:

(a)

matured;

(b)	unmatured;

(c)	liquidated;

(d)	unliquidated;

(e)

secured;

(f)	unsecured;

(g)

absolute;

(h)

fixed; or

(i)

contingent. See Utah Code 31A-1-301

Person: includes :

(a)	an individual;

(b)	a partnership;

(c)	a corporation;

(d)	an incorporated or unincorporated association;

(e)	a joint stock company;

(f)

a trust;

(g)	a limited liability company;

(h)	a reciprocal;

(i)	a syndicate; or

(j)	another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301 Writing: includes :Utah Code 68-3-12.5
(a)	A borrower may cancel a guaranteed asset protection waiver in accordance with this section.

(b)	A borrower may not waive by contract the borrower’s right to cancel a guaranteed asset protection waiver in accordance with this section.

(c)	A guaranteed asset protection waiver terminates on the day on which the related finance agreement terminates.

(2)

(a)	A guaranteed asset protection waiver shall provide for a preliminary period of at least 30 days.

(b)

If a borrower cancels a guaranteed asset protection waiver or if a guaranteed asset protection waiver terminates within the preliminary period, the borrower is entitled to a refund of the charge for the guaranteed asset protection waiver as follows:

(i)	if benefits have not been provided, a full refund; or

(ii)	if benefits have been provided, a refund to the extent provided for in the guaranteed asset protection waiver.

(3)

(a)

If a guaranteed asset protection waiver is cancelled by the borrower or terminates after the preliminary period, to obtain a refund of any portion of the charge for the guaranteed asset protection waiver, the borrower shall request the refund:

(i)

in a writing provided to:

(A)	the creditor;

(B)	an administrator; or

(C)	another person designated in the guaranteed asset protection waiver;

(ii)	within 90 days of the day on which an event occurs that terminates the finance agreement if the refund is sought on the basis of termination of a finance agreement; and

(iii)

in accordance with any additional terms in the guaranteed asset protection waiver.

(b)

If a guaranteed asset protection waiver is cancelled by the borrower or terminates after the preliminary period, but before the term of the finance agreement ends, a borrower is entitled to a refund:

(i)	of the portion of the charge for the guaranteed asset protection waiver that under the terms of the guaranteed asset protection waiver is considered unearned; and

(ii)	subject to any other terms of the guaranteed asset protection waiver.

(4)

(a)

If the cancellation of a guaranteed asset protection waiver occurs as a result of any of the following, a refund may be paid directly to the creditor or administrator and applied as provided in Subsection (4)(b):

(i)	a default under the finance agreement;

(ii)	the repossession of the vehicle associated with the finance agreement; or

(iii)

any other type of termination of the finance agreement or guaranteed asset protection waiver.

(b)	A creditor may apply a refund described in this Subsection (4) to reduce the amount owed under a finance agreement, unless the borrower can show that the finance agreement is paid in full.

Enacted by Chapter 274, 2010 General Session

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