66-440. Definitions. The following definitions apply in this Article: (1) Administrator. – A person that performs administrative or operational functions with respect to guaranteed asset protection waivers. (2) Borrower. – A debtor, retail buyer, or lessee under a vehicle finance agreement. (3) Creditor. – Any of the following: a. A lender in a loan or […]
66-441. Scope of Article. (a) Complete Exemptions. – This Article shall not apply to any of the following: (1) An insurance policy offered by an insurer under Chapter 58 of the General Statutes, except as provided in G.S. 66-443. (2) A debt cancellation or debt suspension contract being offered pursuant to 12 C.F.R. Part 37, […]
66-442. Guaranteed asset protection waivers not subject to insurance laws. Guaranteed asset protection waivers are not insurance and are exempt from the provisions of Chapter 58 of the General Statutes, as are persons administering, marketing, selling, or offering to sell guaranteed asset protection waivers to borrowers. (2013-193, s. 1.)
66-443. Insurance of guaranteed asset protection waivers. (a) Insurance for Creditors. – Creditors may insure guaranteed asset protection waiver obligations under a contractual liability policy or other similar policy issued by an insurer but shall not be required to do so. (b) Required Terms. – Contractual liability or other insurance policies insuring guaranteed asset protection […]
66-444. Mandatory terms. A guaranteed asset protection waiver shall include all of the following written terms in clear, easily understandable language: (1) The name and address of the initial creditor and the borrower at the time of sale and the identity of any administrator if different from the creditor. (2) The purchase price and the […]
66-445. Cancellation. (a) Cancellation During Free-Look Period. – A guaranteed asset protection waiver shall include a term stating that if a borrower cancels the waiver within the free-look period, the borrower will be entitled to a full refund so long as no benefits have been provided under the guaranteed asset protection waiver. (b) Cancellation After […]
66-446. Miscellaneous provisions. (a) Article Controls. – The offering and sale of guaranteed asset protection waivers in this State shall be subject to the provisions of this Article. (b) Manner of Payment. – Guaranteed asset protection waivers may, at the option of the creditor, be sold for a single payment or may be offered with […]
66-447. Enforcement. The Attorney General may take action which is necessary or appropriate to enforce the provisions of this Article and to protect guaranteed asset protection waiver holders in this State. After proper notice and opportunity for hearing, the Attorney General may: (1) Order a creditor, administrator, or any other person not in compliance with […]
66-448. Severability. If any provision of this Article or the application of the provision to any person or circumstances is held invalid, the remainder of the Article and the application of the provision to persons or circumstances other than those as to which it is held invalid shall not be affected. (2013-193, s. 1.)
