31A-6b-303. Cancellation or termination of a guaranteed asset protection waiver.
(1) A borrower may cancel a guaranteed asset protection waiver in accordance with this section. A borrower may not waive by contract the borrower's right to cancel a guaranteed asset protection waiver in accordance with this section. A guaranteed asset protection waiver terminates on the day on which the related finance agreement terminates.
(2) A guaranteed asset protection waiver shall provide for a preliminary period of at least 30 days. 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: if benefits have not been provided, a full refund; or if benefits have been provided, a refund to the extent provided for in the guaranteed asset protection waiver.
(3) 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: in a writing provided to: the creditor; an administrator; or another person designated in the guaranteed asset protection waiver; 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 in accordance with any additional terms in the guaranteed asset protection waiver. 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: 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 subject to any other terms of the guaranteed asset protection waiver.
(4) 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) a default under the finance agreement; the repossession of the vehicle associated with the finance agreement; or any other type of termination of the finance agreement or guaranteed asset protection waiver. A creditor may apply a refund described in this Subsectionto reduce the amount owed under a finance agreement, unless the borrower can show that the finance agreement is paid in full. (4)