Requirements for a Guaranteed Asset Protection Waiver

Utah Code tit. 31A, ch. 31A-6b, pt. 31A-6b-P3

in effect

Utah Code § 31A-6b-301 General requirements for a guaranteed asset protection waiver.

31A-6b-301. General requirements for a guaranteed asset protection waiver. (1) A person may not issue, market, sell, offer to sell, or otherwise provide a guaranteed asset protection waiver except in compliance with this chapter. (2) If a creditor assigns, sells, or transfers a finance agreement, a guaranteed asset protection waiver remains a part of the finance agreement. (3) (a) If a borrower finances or otherwise pays the charge for a guaranteed asset protection waiver, the creditor is liable to the borrower for a benefit due under the guaranteed asset protection waiver regardless of whether the retail seller, administrator, or other person who receives the payment from the borrower remits the charge. (b) This Subsection (3) may not be construed to prejudice any claim a creditor may have against a retail seller, administrator, or other person who receives a payment from a borrower but fails to remit the payment. (4) A creditor may require that a guaranteed asset protection waiver that the creditor issues be sold for: (a) a single payment; or (b) periodic payments. (5) The following may not be conditioned on a borrower purchasing a guaranteed asset protection waiver: (a) the extension of credit; (b) a term of credit; or (c) a term of the related vehicle sale or lease. Enacted by Chapter 274, 2010 General Session

Utah Code § 31A-6b-302 Required disclosures.

31A-6b-302. Required disclosures. (1) A guaranteed asset protection waiver shall disclose the information described in Subsection (2): (a) in writing; and (b) in understandable language that is easy to read. (2) A guaranteed asset protection waiver shall disclose: (a) the name and address of the initial creditor and the borrower at the time the guaranteed asset protection waiver is executed; (b) if there is an administrator for the guaranteed asset protection waiver: (i) the name of the administrator; (ii) the address of the administrator; and (iii) a toll-free number to contact the administrator; (c) the charge for the guaranteed asset protection waiver; (d) the terms of the guaranteed asset protection waiver, including: (i) the requirements for receiving the protection of the guaranteed asset protection waiver; (ii) the conditions imposed by the guaranteed asset protection waiver; and (iii) the exclusions from the protection of the guaranteed asset protection waiver; (e) the procedure the borrower must follow, if any, to obtain a benefit under the guaranteed asset protection waiver, including a telephone number and address where the borrower may apply for a benefit under the guaranteed asset protection waiver; (f) that the borrower may cancel the guaranteed asset protection waiver; (g) the rights the borrower has to a refund under Section 31A-6b-303; (h) if the guaranteed asset protection waiver is cancelled or terminated after the preliminary period: (i) the procedures for requesting a refund under Section 31A-6b-303, including that the borrower request a refund in writing in accordance with Section 31A-6b-303; and (ii) the methodology for calculating the refund due, if any; (i) that none of the following may be conditioned on the purchase of a guaranteed asset protection waiver: (i) the extension of credit; (ii) a term of credit; or (iii) a term of the related vehicle sale or lease; and (j) (i) that a guaranteed asset protection waiver is subject to limited regulation by the commissioner; and (ii) that a complaint regarding a guaranteed asset protection waiver may be submitted to the commissioner. Enacted by Chapter 274, 2010 General Session

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

31A-6b-303. Cancellation or termination of a guaranteed asset protection waiver. (1) (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

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title31A/Chapter6B/31A-6b-P3.html?v=C31A-6b-P3_1800010118000101Fetched: 10/26/2026