§ 13-64-203 — Preliminary period -- Cancellation -- Refund.

(1) (1)(a) A vehicle value protection agreement shall provide for a preliminary period of at least 30 days.
(1)(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:
(1)(b)(i) if benefits have not been provided, a full refund; or
(1)(b)(ii) if benefits have been provided, a refund to the extent provided for in the vehicle value protection agreement.
(2) (2)(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.
(2)(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:
(2)(b)(i) the purchaser's failure to pay the provider's fee under the vehicle value protection agreement; or
(2)(b)(ii) the purchaser's breach of the purchaser's duties relating to the covered vehicle.
(3) A notice described in Subsection (2) shall include:

(3)(a) the effective date of the cancellation; and
(3)(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:

(4)(a) shall refund the purchaser any unearned provider fee under the vehicle value protection agreement;
(4)(b) may charge the purchaser an administrative fee of up to $75; and
(4)(c) may deduct the amount of a benefit paid under the vehicle value protection agreement from the refund.

Legislative History

Enacted by Chapter 509, 2023 General Session