1. A dealer who sells or offers to sell guaranteed asset protection waivers shall purchase a policy of contractual liability insurance that insures the obligations of each guaranteed asset protection waiver the dealer sells or offers for sale other than a guaranteed asset protection waiver concerning a leased vehicle. Any other type of creditor who sells or offers to sell guaranteed asset protection waivers may purchase such a policy.
2. A policy of contractual liability insurance purchased pursuant to this section must:
(a) Be issued by an insurer who is authorized to transact insurance in this State or pursuant to the provisions of chapter 685A of NRS.
(b) State the obligation of the insurer to reimburse or pay to the creditor any amount that the creditor is obligated to waive pursuant to the guaranteed asset protection waivers insured by the policy.
(c) Provide coverage for any person to whom a guaranteed asset protection waiver is assigned, including, without limitation, as part of a finance agreement.
(d) Remain in effect until the policy is cancelled or terminated.
3. The cancellation or termination of a policy of contractual liability insurance purchased pursuant to this section must not reduce the responsibility of the insurer to provide coverage for guaranteed asset protection waivers:
(a) That were issued by the insured creditor before the date of the cancellation or termination; and
(b) For which the creditor has paid for coverage.
(Added to NRS by 2015, 2639)