General requirements for a guaranteed asset protection waiver

(1) A person may not issue, market, sell, offer to sell, or otherwise provide a guaranteed asset protection waiver except in compliance with this chapter. (2) If a creditor assigns, sells, or transfers a finance agreement, a guaranteed asset protection waiver remains a part of the finance agreement. (3) (a) If a borrower finances or otherwise pays the charge for a guaranteed asset protection waiver, the creditor is liable to the borrower for a benefit due under the guaranteed asset protection waiver regardless of whether the retail seller, administrator, or other person who receives the payment from the borrower remits the charge. (b) This Subsection (3) may not be construed to prejudice any claim a creditor may have against a retail seller, administrator, or other person who receives a payment from a borrower but fails to remit the payment. (4) A creditor may require that a guaranteed asset protection waiver that the creditor issues be sold for: (a) a single payment; or (b) periodic payments. (5) The following may not be conditioned on a borrower purchasing a guaranteed asset protection waiver: (a) the extension of credit; (b) a term of credit; or (c) a term of the related vehicle sale or lease.