13-64-203. Preliminary period -- Cancellation -- Refund.
321 words·~1 min read·
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Effective 5/3/2023
13-64-203. Preliminary period -- Cancellation -- Refund.
(a)A vehicle value protection agreement shall provide for a preliminary period of at least 30 days.
(b)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:
(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 vehicle value protection agreement.
(a)Except as provided in Subsection (2)(b) , 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.
(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:
(i)the purchaser's failure to pay the provider's fee under the vehicle value protection agreement; or
(ii)the purchaser's breach of the purchaser's duties relating to the covered vehicle.
(3)A notice described in Subsection
(2)shall include:
(a)the effective date of the cancellation; and
(b)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:
(a)shall refund the purchaser any unearned provider fee under the vehicle value protection agreement;
(b)may charge the purchaser an administrative fee of up to $75; and
(c)may deduct the amount of a benefit paid under the vehicle value protection agreement from the refund.
Enacted by Chapter 509 , 2023 General Session
Technically renumbered to avoid duplication of newly enacted Chapter also in SB 152, Chapter 498, SB 225, Chapter 377, and SB 274, Chapter 536.