Technically renumbered to avoid duplication of newly enacted Chapter also in SB 152, Chapter 498, SB 225, Chapter 377, and SB 274, Chapter 536.

1. (1)

   1. (a) A vehicle value protection agreement shall provide for a preliminary period of at least 30 days.

   2. (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. (i) if benefits have not been provided, a full refund; or
      2. (ii) if benefits have been provided, a refund to the extent provided for in the vehicle value protection agreement.

2. (2)

   1. (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:

      1. (i) the purchaser's failure to pay the provider's fee under the vehicle value protection agreement; or
      2. (ii) the purchaser's breach of the purchaser's duties relating to the covered vehicle.

3. (3) A notice described in Subsection (2) shall include:

   1. (a) the effective date of the cancellation; and
   2. (b) the reason for the cancellation.

4. (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:

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

Enacted by Chapter 509, 2023 General Session