§ 26.1-57-03 — Requirements for offering guaranteed asset protection waivers

1. A guaranteed asset protection waiver may be offered, sold, or provided to a borrower
in this state in compliance with this chapter.
2. A guaranteed asset protection waiver may, at the option of the creditor, be sold for a
single payment or may be offered with a monthly or periodic payment option.
3. Notwithstanding any contrary provision of law, any cost to the borrower for a
guaranteed asset protection waiver entered in compliance with the federal Truth in
Lending Act [15 U.S.C. 1601 et seq.], and related implementing regulations, must be
separately stated and is not a finance charge or interest.
4. A dealer shall insure the dealer's guaranteed asset protection waiver obligations under
a contractual liability or other insurance policy issued by an insurer. A creditor, other
than a dealer, may insure the creditor's guaranteed asset protection waiver obligations

under a contractual liability policy or other such policy issued by an insurer. Any such
insurance policy may be obtained directly by a creditor or dealer, or may be procured
by an administrator, to cover a creditor's or dealer's obligations. However, a dealer that
is a lessor on a motor vehicle is not required to insure obligations related to
guaranteed asset protection waivers on that leased vehicle.
5. The guaranteed asset protection waiver remains a part of the finance agreement upon
the assignment, sale, or transfer of that finance agreement by the creditor.
6. Neither the extension of credit, the term of credit, nor the term of the related motor
vehicle sale or lease may be conditioned upon the purchase of a guaranteed asset
protection waiver.
7. A creditor that offers a guaranteed asset protection waiver shall report the sale of, and
forward funds received on all such waivers to the designated party, if any, as
prescribed in any applicable administrative services agreement, contractual liability
policy, other insurance policy, or other specified program documents.
8. Funds received or held by a creditor or administrator and belonging to an insurer,
creditor, or administrator, pursuant to the terms of a written agreement, must be held
by the creditor or administrator in a fiduciary capacity.