Arkansas Code Title 4. Business and Commercial Law § 4-90-803. Requirements for offering guaranteed asset protection waivers

(a) A guaranteed asset protection waiver may be offered, sold, or provided to a borrower in this state under this subchapter.

(b) At the option of the creditor that offers the guaranteed asset protection waiver, a guaranteed asset protection waiver may:

(c) Notwithstanding any other provision of law, any cost to the borrower for a guaranteed asset protection waiver entered into in compliance with the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing federal regulations, as it existed on January 1, 2019, shall be separately itemized in the finance agreement and is not to be considered a finance charge or interest.

(e) The guaranteed asset protection waiver remains a part of the finance agreement upon an assignment, sale, or transfer of the finance agreement by the creditor.

(f) Neither the extension of credit, the term of credit, nor the term of the related motor vehicle sale or lease may be conditioned on the purchase of a guaranteed asset protection waiver.

(g) A creditor that offers a guaranteed asset protection waiver shall report the sale of, and forward funds received on, all waivers to the designated party, if any, as prescribed in any applicable administration services agreement, contractual liability policy, other insurance policy, or other specified program documents.

(h) Moneys received or held by a creditor or administrator and belonging to an insurer, creditor, or administrator, under the terms of a written agreement, shall be held by the creditor or administrator in a fiduciary capacity.