(1) A provider shall not offer a vehicle value protection agreement unless the agreement meets the requirements of this article 21. A provider shall not condition the extension of credit, the terms of credit, or the terms of the related vehicle sale or lease upon the purchase of a vehicle value protection agreement. (2) To comply with this section, a vehicle value protection agreement must: (a) Provide a benefit to the contract holder upon the trade-in, total loss, or unrecovered theft of a covered vehicle. The benefit may be: (I) A credit toward the purchase or lease of a subsequent or replacement vehicle; or (II) An amount applied to the cash value of the covered vehicle at the time of trade-in. (b) Identify, in the contract, the administrator or provider, the dealer, the contract holder, and the terms of the sale; (c) (I) Guarantee the provider's obligations by an insurance policy that complies with section 42-21-105; and (II) Conspicuously state that the provider's obligations are guaranteed by an insurance policy, issued by an insurer, that pays the contract holder if the provider fails to perform its obligations under the vehicle value protection agreement; (d) Outline the terms, including the purchase price of the covered vehicle and any eligibility requirements, conditions of coverage, or exclusions, of the vehicle value protection agreement; (e) Notify the contract holder of the following: (I) Whether the vehicle value protection agreement is cancellable and the procedures for requesting any refund of the unearned purchase price of the agreement paid by the contract holder; (II) The methodology for calculating any refund of the unearned purchase price of the vehicle value protection agreement after the agreement is canceled; (III) Any procedures the contract holder must follow to obtain a benefit under the terms and conditions of the vehicle value protection agreement and, if applicable, a telephone number, website, and address where the contract holder may apply for a benefit; and (IV) That neither the extension of credit, the terms of credit, nor the terms of the related vehicle sale or lease may be conditioned upon the purchase of the vehicle value protection agreement; and (f) State the terms, restrictions, and conditions governing cancellation of the vehicle value protection agreement prior to the termination date of the agreement by either the provider or the contract holder.
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