{"data":{"id":"us-ok/okla.-stat.-tit.-15-15-140.4","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 15, § 15-140.4","heading":"Debt waiver obligations – Contractual liability","body":"policies.\n\nA. As used in this section:\n\n1. “Administrator” means a person, other than an insurer or\n\ncreditor that performs administrative or operational functions\n\npursuant to debt waiver programs;\n\n2. “Borrower” means a debtor, retail buyer, or lessee, under a\n\nfinance agreement;\n\n3. “Creditor” means:\n\na. the lender in a loan or credit transaction,\n\nb. the lessor in a lease transaction,\n\nc. any retail seller of motor vehicles,\n\nd. the seller in commercial retail installment\n\ntransactions, or\n\ne. the assignees of any of the foregoing to whom the\n\ncredit obligation is payable; and\n\n4. “Debt waiver” includes, but is not limited to:\n\na. “guaranteed asset protection waivers” or “GAP waivers”\n\nmeans a contractual agreement wherein a creditor\n\nagrees, with or without a separate charge, to cancel\n\nor waive all or part of amounts due on a borrower’s\n\nfinancial agreement in the event of a total physical\n\ndamage loss or unrecovered theft of the motor vehicle,\n\nwhich an agreement shall be part of, or as a separate\n\naddendum to, the financial agreement. A GAP waiver\n\nmay also provide, with or without a separate charge, a\n\nbenefit that waives an amount or provides a borrower\n\nwith a credit towards the purchase of a replacement\n\nmotor vehicle,\n\nb. “excess wear and use waiver” means a contractual\n\nagreement wherein a creditor agrees, with or without a\n\nseparate charge, to cancel or waive all or part of\n\namounts that may become due under a borrower’s lease\n\nagreement as a result of excessive wear and use of a\n\nmotor vehicle, which an agreement shall be part of, or\n\nas a separate addendum to, the lease agreement.\n\nExcess wear and use waivers may also cancel or waive\n\namounts due for excess mileage, and\n\nc. other products as approved by the Insurance\n\nCommissioner.\n\nB. 1. No administrator or creditor operating as an\n\nadministrator shall perform or engage in any administrative or\n\noperational functions of a debt waiver program without first\n\nregistering with the Insurance Department. Registration shall be\n\nrenewed annually by July 15 of each calendar year. All\n\nregistrations shall be filed and fees shall be paid electronically\n\nin the manner and form prescribed by the Commissioner.\n\n2. An administrator or a creditor operating as an administrator\n\nshall electronically file an updated registration within thirty (30)\n\ndays of any change of name, address, or email address.\n\n3. Every administrator or creditor, upon receipt of any inquiry\n\nfrom the Commissioner, shall furnish the Commissioner with an\n\nadequate response to the inquiry within twenty (20) days from the\n\ndate of receipt of the inquiry.\n\nC. As required for offering debt waivers:\n\n1. A retail seller shall insure its debt waiver obligations\n\nunder a contractual liability or other insurance policy issued by an\n\ninsurer. A creditor other than retail sellers may insure its debt\n\nwaiver obligations under a contractual liability policy or other\n\nsuch policy issued by an insurer. Any such insurance policy may be\n\ndirectly obtained by a creditor or retail seller or may be obtained\n\nby an administrator to cover a creditor’s or retail seller’s\n\nobligations. However, retail sellers that are lessors on motor\n\nvehicles are not required to insure obligations related to debt\n\nwaivers on such leased motor vehicles;\n\n2. The debt waiver remains a part of the finance agreement upon\n\nthe assignment, sale, or transfer of such finance agreement by the\n\ncreditor;\n\n3. Any creditor that offers a debt waiver shall report the sale\n\nof, and subsequently forward the funds due to, the designated party\n\nor parties; and\n\n4. Funds received or held by a creditor or administrator that\n\nbelong to an insurer, creditor, or administrator shall be held by\n\nsuch creditor or administrator in a fiduciary capacity.\n\nD. Contractual Liability or Other Insurance Policies.\n\n1. Contractual liability or other insurance policies insuring\ndue to, the designated party\n\nor parties; and\n\n4. Funds received or held by a creditor or administrator that\n\nbelong to an insurer, creditor, or administrator shall be held by\n\nsuch creditor or administrator in a fiduciary capacity.\n\nD. Contractual Liability or Other Insurance Policies.\n\n1. Contractual liability or other insurance policies insuring\n\ndebt waivers shall state the obligation of the insurer to reimburse\n\nor pay to the creditor any sums the creditor is legally obligated to\n\nwaive under a debt waiver.\n\n2. Coverage under a contractual liability or other insurance\n\npolicy insuring a debt waiver shall also cover any subsequent\n\nassignee upon the assignment, sale, or transfer of the finance\n\nagreement.\n\n3. Coverage under a contractual liability or other insurance\n\npolicy insuring a debt waiver shall remain in effect unless canceled\n\nor terminated in compliance with applicable insurance laws of this\n\nstate.\n\n4. The cancelation or termination of a contractual liability or\n\nother insurance policy shall not reduce the insurer’s responsibility\n\nfor debt waivers issued by the creditor prior to the date of\n\ncancelation or termination and for which the premium has been\n\nreceived by the insurer.\n\nE. Debt waivers shall disclose in writing and in clear,\n\nunderstandable language the following:\n\n1. The name and address of the initial creditor and the\n\nborrower at the time of sale and identity of any administrator if\n\ndifferent from the creditor;\n\n2. The purchase price, if any, and the terms of the debt waiver\n\nincluding without limitation, the requirements of protection,\n\nconditions, or exclusions associated with the debt waiver;\n\n3. That the borrower may cancel the debt waiver within a free\n\nlook period, as specified in the debt waiver, and will be entitled\n\nto a full refund of the purchase price paid by the borrower, if any,\n\nas long as no benefits have been provided;\n\n4. The procedures the borrower shall follow, if any, to obtain\n\ndebt waiver benefits under the terms and conditions of the debt\n\nwaiver including, if applicable, a telephone number or website and\n\naddress where the borrower may apply for debt waiver benefits;\n\n5. Whether or not the debt waiver may be canceled after the\n\nfree look period and the conditions under which it may be canceled\n\nor terminated including the procedures for requesting any refund of\n\namounts paid;\n\n6. That in order to receive any refund due in the event of a\n\nborrower’s cancelation of the debt waiver, the borrower, in\n\naccordance with the term of the debt waiver, shall provide a written\n\nrequest to cancel to the creditor, administrator, or other such\n\nparty. If the cancelation of a debt waiver is due to an early\n\ntermination of the finance agreement and no benefit has been or will\n\nbe provided, then the borrower, in accordance with the terms of the\n\ndebt waiver, shall provide a written request to cancel to the\n\ncreditor or administrator within ninety (90) days of the occurrence\n\nof the event terminating the finance agreement;\n\n7. The methodology for calculating any refund of the unearned\n\npurchase price of the debt waiver, if any, shall be due in the event\n\nof cancelation of the debt waiver or early termination of a finance\n\nagreement; and\n\n8. That neither the extension of credit, the terms of the\n\ncredit, nor the terms of the related motor vehicle sale or lease,\n\nmay be conditioned upon the borrower’s purchase of a debt waiver.\n\nF. Cancelation.\n\n1. Debt waiver agreements may be cancelable or non-cancelable\n\nfollowing the free look period. Debt waivers shall provide the\n\nborrower, if a borrower cancels a debt waiver within the free look\n\nperiod, a full refund of the amount the borrower paid, if any, as\n\nlong as no benefits have been provided.\n\n2. In the event of a borrower’s cancelation of the debt waiver\n\nor upon the early termination of the finance agreement after the\ne cancelable or non-cancelable\n\nfollowing the free look period. Debt waivers shall provide the\n\nborrower, if a borrower cancels a debt waiver within the free look\n\nperiod, a full refund of the amount the borrower paid, if any, as\n\nlong as no benefits have been provided.\n\n2. In the event of a borrower’s cancelation of the debt waiver\n\nor upon the early termination of the finance agreement after the\n\ndebt waiver has been in effect beyond the free look period, the\n\nborrower may be entitled to a refund of the amount the borrower paid\n\nof the unearned portion of the purchase price, if any, minus a\n\ncancelation fee not to exceed Seventy-five Dollars ($75.00), if no\n\nbenefit has been or will be provided. In order to receive any\n\nrefund due in the event of a borrower’s cancellation of the debt\n\nwaiver, the borrower shall provide a written request to cancel, in\n\naccordance with the terms of the debt waiver, to the creditor or\n\nadministrator. If the cancelation is due to the early termination\n\nof the finance agreement, then the borrower, in accordance with the\n\nterms of the debt waiver, shall provide a written request to cancel\n\nto the creditor or administrator within ninety (90) days of the\n\noccurrence of the event terminating the finance agreement.\n\n3. If the cancelation of a debt waiver occurs as a result of a\n\ndefault under the finance agreement or the repossession of the motor\n\nvehicle associated with the finance agreement, or any other\n\ntermination of the finance agreement, any refund due may be paid\n\ndirectly to the creditor or administrator, unless the borrower can\n\nshow that the finance agreement has been paid in full.\n\nG. Exempt Transactions.\n\n1. Debt waivers offered by state or federal banks or credit\n\nunions in compliance with the applicable state or federal law are\n\nexempt from Section 140.2 et seq. of this title.\n\n2. Subsection E of this section and Section 140.6 of this title\n\nshall not apply to debt waivers offered in connection with\n\ncommercial transactions.","path":["OK Code","Title 15"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os15.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"507adb60d7044ac2e92dabb28bb785ced99ba94982c1b3fd2d3ea81ad9bf9600","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-15-15-140.3","next":"us-ok/okla.-stat.-tit.-15-15-140.5"},"notice":"GroundRules: Original legal text. Not legal advice."}