{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/38.2-6404.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/38.2-6404.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/38.2-6404.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/38.2-6404.html"}],"law_id":362955,"edition_id":2,"section_id":362955,"structure_id":51809,"section_number":"38.2-6404","catch_line":"Cancellation","history":"2019, cc. 799, 800.","full_text":"A\n\nGuaranteed asset protection waiver agreements may be cancelable or non-cancelable after the free look period. GAP waivers shall provide that if a borrower cancels a waiver within the free look period, the borrower will be entitled to a full refund of the purchase price, if no benefits have been provided.\n\nB\n\nIn the event of a borrower’s cancellation of the GAP waiver or early termination of the finance agreement, after the agreement has been in effect beyond the free look period, the borrower may be entitled to a refund of any unearned portion of the purchase price of the waiver unless the waiver provides otherwise. In order to receive any refund due in the event of a borrower’s cancellation of the GAP waiver agreement or early termination of the finance agreement after the free look period of the GAP waiver, the borrower, in accordance with the terms of the waiver, is required to provide a written request to cancel to the creditor, administrator, or such other party. If the GAP waiver is canceled as a result of the early termination of the finance agreement, the borrower shall provide the request within 90 days of the occurrence of the event terminating the finance agreement.\n\nC\n\nIf the cancellation of a GAP waiver occurs as a result of a default under the finance agreement or the repossession of the motor vehicle associated with the finance agreement, or any other termination of the finance agreement, any refund due may be paid directly to the creditor or administrator and applied as set forth in subsection D.\n\nD\n\nAny cancellation refund under subsection A, B, or C may be applied by the creditor as a reduction of the amount owed under the finance agreement unless the borrower can show that the finance agreement has been paid in full.\n\n","order_by":null,"text":{"0":{"id":1352330,"text":"Guaranteed asset protection waiver agreements may be cancelable or non-cancelable after the free look period. GAP waivers shall provide that if a borrower cancels a waiver within the free look period, the borrower will be entitled to a full refund of the purchase price, if no benefits have been provided.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1352331,"text":"In the event of a borrower’s cancellation of the GAP waiver or early termination of the finance agreement, after the agreement has been in effect beyond the free look period, the borrower may be entitled to a refund of any unearned portion of the purchase price of the waiver unless the waiver provides otherwise. In order to receive any refund due in the event of a borrower’s cancellation of the GAP waiver agreement or early termination of the finance agreement after the free look period of the GAP waiver, the borrower, in accordance with the terms of the waiver, is required to provide a written request to cancel to the creditor, administrator, or such other party. If the GAP waiver is canceled as a result of the early termination of the finance agreement, the borrower shall provide the request within 90 days of the occurrence of the event terminating the finance agreement.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":1352332,"text":"If the cancellation of a GAP waiver occurs as a result of a default under the finance agreement or the repossession of the motor vehicle associated with the finance agreement, or any other termination of the finance agreement, any refund due may be paid directly to the creditor or administrator and applied as set forth in subsection D.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":1352333,"text":"Any cancellation refund under subsection A, B, or C may be applied by the creditor as a reduction of the amount owed under the finance agreement unless the borrower can show that the finance agreement has been paid in full.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":51809,"edition_id":2,"name":"Guaranteed Asset Protection Waivers","identifier":"64","label":"chapter","depth":2,"order_by":38,"parent_id":51644,"metadata":{"child_laws":8,"child_structures":0},"date_created":"2026-08-02 02:49:13","date_modified":"2026-08-02 12:33:16","permalink":{"id":1445313,"object_type":"structure","relational_id":51809,"identifier":"64","token":"38.2\/64","url":"\/38.2\/64\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51644,"edition_id":2,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":88,"parent_id":null,"metadata":{"child_laws":1890,"child_structures":173},"date_created":"2026-08-02 02:45:30","date_modified":"2026-08-02 12:32:55","permalink":{"id":1437663,"object_type":"structure","relational_id":51644,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":362951,"structure_id":51809,"section_number":"38.2-6400","catch_line":"Definitions","url":"\/38.2-6400\/","token":"38.2\/64\/38.2-6400","metadata":false},{"id":362952,"structure_id":51809,"section_number":"38.2-6401","catch_line":"Requirements for offering guaranteed asset protection waivers","url":"\/38.2-6401\/","token":"38.2\/64\/38.2-6401","metadata":false},{"id":362953,"structure_id":51809,"section_number":"38.2-6402","catch_line":"Contractual liability or other insurance policies","url":"\/38.2-6402\/","token":"38.2\/64\/38.2-6402","metadata":false},{"id":362954,"structure_id":51809,"section_number":"38.2-6403","catch_line":"Disclosures","url":"\/38.2-6403\/","token":"38.2\/64\/38.2-6403","metadata":false},{"id":362955,"structure_id":51809,"section_number":"38.2-6404","catch_line":"Cancellation","url":"\/38.2-6404\/","token":"38.2\/64\/38.2-6404","metadata":false},{"id":362956,"structure_id":51809,"section_number":"38.2-6405","catch_line":"Commercial transactions","url":"\/38.2-6405\/","token":"38.2\/64\/38.2-6405","metadata":false},{"id":362957,"structure_id":51809,"section_number":"38.2-6406","catch_line":"GAP waivers not insurance","url":"\/38.2-6406\/","token":"38.2\/64\/38.2-6406","metadata":false},{"id":362958,"structure_id":51809,"section_number":"38.2-6407","catch_line":"Exemptions from chapter","url":"\/38.2-6407\/","token":"38.2\/64\/38.2-6407","metadata":false}],"previous_section":{"id":362954,"structure_id":51809,"section_number":"38.2-6403","catch_line":"Disclosures","url":"\/38.2-6403\/","token":"38.2\/64\/38.2-6403","metadata":false},"next_section":{"id":362956,"structure_id":51809,"section_number":"38.2-6405","catch_line":"Commercial transactions","url":"\/38.2-6405\/","token":"38.2\/64\/38.2-6405","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-6404\/","history_text":"

This law was first created in 2019. The record of its establishment is cataloged in chapters 799<\/a> and 800<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":1445331,"object_type":"law","relational_id":362955,"identifier":"38.2-6404","token":"38.2\/64\/38.2-6404","url":"\/38.2-6404\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/38.2-6404\/","token":"38.2\/64\/38.2-6404","dublin_core":{"Title":"Cancellation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-6404","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Guaranteed asset protection waiver<\/span> agreements may be cancelable or non-cancelable after the free look period<\/span>. GAP waivers<\/span> shall provide that if a borrower<\/span> cancels a waiver within the free look period<\/span>, the borrower<\/span> will be entitled to a full refund of the purchase price, if no benefits have been provided. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In the event of a borrower<\/span>’s cancellation of the GAP waiver<\/span> or early termination of the finance agreement<\/span>, after the agreement has been in effect beyond the free look period<\/span>, the borrower<\/span> may be entitled to a refund of any unearned portion of the purchase price of the waiver unless the waiver provides otherwise. In order<\/span> to receive any refund due in the event of a borrower<\/span>’s cancellation of the GAP waiver<\/span> agreement or early termination of the finance agreement<\/span> after the free look period<\/span> of the GAP waiver<\/span>, the borrower<\/span>, in accordance with the terms of the waiver, is required to provide a written request to cancel to the creditor<\/span>, administrator<\/span>, or such other party<\/span>. If the GAP waiver<\/span> is canceled as a result of the early termination of the finance agreement<\/span>, the borrower<\/span> shall provide the request within 90 days of the occurrence of the event terminating the finance agreement<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the cancellation of a GAP waiver<\/span> occurs as a result of a default<\/span> under the finance agreement<\/span> or the repossession of the motor vehicle<\/span> associated with the finance agreement<\/span>, or any other termination of the finance agreement<\/span>, any refund due may be paid directly to the creditor<\/span> or administrator<\/span> and applied as set forth in subsection D. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any cancellation refund under subsection A, B, or C may be applied by the creditor<\/span> as a reduction of the amount owed under the finance agreement<\/span> unless the borrower<\/span> can show that the finance agreement<\/span> has been paid in full. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCANCELLATION (\u00a7 38.2-6404)\n\nA. Guaranteed asset protection waiver agreements may be cancelable or\nnon-cancelable after the free look period. GAP waivers shall provide that if a\nborrower cancels a waiver within the free look period, the borrower will be\nentitled to a full refund of the purchase price, if no benefits have been\nprovided.\n\nB. In the event of a borrower’s cancellation of the GAP waiver or early\ntermination of the finance agreement, after the agreement has been in effect\nbeyond the free look period, the borrower may be entitled to a refund of any\nunearned portion of the purchase price of the waiver unless the waiver provides\notherwise. In order to receive any refund due in the event of a borrower’s\ncancellation of the GAP waiver agreement or early termination of the finance\nagreement after the free look period of the GAP waiver, the borrower, in\naccordance with the terms of the waiver, is required to provide a written\nrequest to cancel to the creditor, administrator, or such other party. If the\nGAP waiver is canceled as a result of the early termination of the finance\nagreement, the borrower shall provide the request within 90 days of the\noccurrence of the event terminating the finance agreement.\n\nC. If the cancellation of a GAP waiver occurs as a result of a default under the\nfinance agreement or the repossession of the motor vehicle associated with the\nfinance agreement, or any other termination of the finance agreement, any refund\ndue may be paid directly to the creditor or administrator and applied as set\nforth in subsection D.\n\nD. Any cancellation refund under subsection A, B, or C may be applied by the\ncreditor as a reduction of the amount owed under the finance agreement unless\nthe borrower can show that the finance agreement has been paid in full.\n\nHISTORY: 2019, cc. 799, 800.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}