§ 26.1-57-06 — Cancellation

North Dakota § 26.1-57-06

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-57: Guaranteed Asset Protection Waivers

Text

1. A guaranteed asset protection waiver agreement is cancellable. A guaranteed asset
protection waiver must provide if a borrower cancels a waiver within the free-look
period, the borrower is entitled to a full refund of the purchase price, if benefits have
not been provided. If a borrower cancels the waiver after the free-look period and no
benefits have been provided, the creditor, administrator, or other authorized party shall
provide the borrower a refund of the purchase price, calculated in a manner at least as
favorable as using the sum-of-the-digits method, less any cancellation fee no greater
than fifty dollars.
2. To receive a refund, the borrower, in accordance with any applicable terms of the
waiver, shall provide a written request to cancel to the creditor, administrator, or other
party. If the request to cancel is a result of the early termination of the finance
agreement the borrower shall provide the written request to cancel within ninety days
of the occurrence of the event terminating the finance agreement.
3. If the cancellation of a guaranteed asset protection waiver occurs as a result of a
default under the finance agreement or the repossession of the motor vehicle
associated with the finance agreement, or any other termination of the finance
agreement, any refund due may be paid directly to the creditor or administrator and
applied as set forth in subsection 4.
4. Any cancellation refund under subsection 1, 2, or 3 may be applied by the creditor as a
reduction of the amount owed under the finance agreement, unless the borrower can
show that the finance agreement has been paid in full.