Section 646A.776 - Required disclosures; cancellation provisions; effect on motor vehicle purchaser's creditA person may not sell a guaranteed asset protection waiver in connection with a sale of a motor vehicle that is used for personal, family or household purposes unless, at the time of the sale:
(1) The person discloses, in writing and in plain and easily understandable language:(a) The name, address and other contact information for: (A) The person that sells the guaranteed asset protection waiver;(B) The creditor, if different; and(C) Any other person that is a party to or has duties, responsibilities or other obligations under the terms of the guaranteed asset protection waiver.(b) The purchase price of the guaranteed asset protection waiver.(c) The terms and conditions of the guaranteed asset protection waiver, including but not limited to: (A) Conditions under which the creditor will waive or decline to waive all or a portion of the obligation that remains under a finance agreement;(B) The methodology for determining the amount the creditor will waive; and(C) The length of the evaluation period.(d) The identity, location and contact information for the person to which the borrower must submit a claim for benefits or a refund under the guaranteed asset protection waiver and the procedure the borrower must follow to submit the claim.(e) Conditions under which the borrower may cancel the guaranteed asset protection waiver and the procedure the borrower must follow to cancel, both during the evaluation period and after the evaluation period expires, if the terms of the guaranteed asset protection waiver permit cancellation after the evaluation period expires.(f) The formula or methodology that will apply to calculating the amount of any refund available under the terms and conditions of the guaranteed asset protection waiver if: (A) The borrower cancels the guaranteed asset protection waiver during the evaluation period or, if permitted under the terms and conditions of the guaranteed asset protection waiver, after the evaluation period expires; or(B) The finance agreement is terminated early.(2) The guaranteed asset protection waiver provides that the borrower may cancel the guaranteed asset protection waiver during the evaluation period for a full refund of the purchase price if the borrower did not receive any benefits.(3) The creditor states clearly, and the terms of the guaranteed asset protection waiver provide in writing, that purchasing a guaranteed asset protection waiver is not required in order to obtain credit or complete a purchase or lease of a motor vehicle and does not affect the terms and conditions of credit that a borrower obtains from a creditor.