§ 45-1105 — Guaranteed asset protection waiver; disclosures required

Guaranteed asset protection waivers shall disclose, as applicable,
in writing and in clear, understandable language that is easy to read, the
following:
(1) The name
and address of the initial creditor or the creditor's designee and the borrower
at the time of sale;
(2) The purchase price and the terms of the guaranteed asset protection
waiver, including the requirements for protection, conditions, or exclusions
associated with the guaranteed asset protection waiver;
(3) That the
borrower may cancel the guaranteed asset protection waiver within the free-look
period as specified in the waiver, and will be entitled to a full refund of
the purchase price, so long as no benefits have been provided. In the event
benefits have been provided during the free-look period, the borrower may
receive a full refund less any benefits provided under the waiver;
(4) The procedure
the borrower shall follow, if any, to obtain guaranteed asset protection waiver
benefits under the terms and conditions of the waiver, including a telephone
number and address where the borrower may apply for waiver benefits;
(5) Whether
or not the guaranteed asset protection waiver is cancelable after the free-look
period and the conditions under which it may be canceled or terminated including
the procedures for requesting any refund due;
(6) That in order to receive
any refund due in the event of a borrower's cancellation of the guaranteed
asset protection waiver agreement or early termination of the finance agreement
after the free-look period of the guaranteed asset protection waiver, the
borrower, in accordance with terms of the waiver, shall provide a written
request to cancel to the creditor or the creditor's designee within ninety
days after the occurrence of the event terminating the finance agreement;
(7) The methodology
for calculating any refund of the unearned purchase price of the guaranteed
asset protection waiver due, in the event of cancellation of the guaranteed
asset protection waiver or early termination of the finance agreement;
(8) That neither
the extension of credit, the terms of the credit, nor the terms of the related
motor vehicle sale or lease shall be conditioned upon the purchase of the
guaranteed asset protection waiver;
(9) That a guaranteed asset protection waiver
is not insurance and is not regulated by the Department of Insurance and that
the guaranteed asset protection waiver remains a part of the finance agreement
upon the assignment, sale, or transfer of such finance agreement by the creditor
or the creditor's designee; and
(10) The events or losses to which the guaranteed
asset protection waiver does not apply.

Legislative History

Source: Laws 2010, LB571, § 5.