13-64-203. Preliminary period -- Cancellation -- Refund.
(1) A vehicle value protection agreement shall provide for a preliminary period of at least 30 days. If a purchaser cancels a vehicle value protection agreement within the preliminary period, the purchaser is entitled to a refund of the charges under the vehicle value protection agreement as follows: if benefits have not been provided, a full refund; or if benefits have been provided, a refund to the extent provided for in the vehicle value protection agreement.
(2) Except as provided in Subsection, if a provider cancels a vehicle value protection agreement, the provider shall mail a written notice to the purchaser at least five days before the day on which the vehicle value protection agreement is canceled. (2)(b) A provider may immediately cancel a vehicle value protection agreement upon sending a notice of cancellation to the purchaser if the reason for the cancellation is: the purchaser's failure to pay the provider's fee under the vehicle value protection agreement; or the purchaser's breach of the purchaser's duties relating to the covered vehicle.
(3) A notice described in Subsectionshall include: (2) the effective date of the cancellation; and the reason for the cancellation.
(4) If a provider cancels a vehicle value protection agreement for a reason other than the purchaser's failure to pay the provider's fee under the vehicle value protection agreement, the provider: shall refund the purchaser any unearned provider fee under the vehicle value protection agreement; may charge the purchaser an administrative fee of up to $75; and may deduct the amount of a benefit paid under the vehicle value protection agreement from the refund.