Colorado § 5-9.3-106 - Cancellation of GAP agreement.
Full text of Colorado Colorado Revised Statutes § 5-9.3-106 — Cancellation of GAP agreement., with citation guidance and answers to common questions.
§ 5-9.3-106. Cancellation of GAP agreement.
(1) The original creditor must refund to the consumer the unearned GAP fee paid pursuant to the GAP agreement if:
(a) The finance agreement is prepaid prior to maturity or the motor vehicle is no longer in the consumer's possession due to the creditor's lawful repossession and disposition of the collateral; and
(b) The consumer has not made a claim under the GAP agreement.
(2) (a) If the GAP agreement is provided as a contractual term of the finance agreement, any refund issued must be calculated using a pro rata method or any other method approved by the administrator.
(b) If the GAP agreement is provided as insurance, any refund issued must be calculated using a method authorized under applicable insurance statutes, rules, or interpretations of the commissioner of insurance pursuant to title 10.
(3) (a) In the event that the consumer finance agreement has been assigned to a person other than the original creditor, the assignee shall send notice to the original creditor requesting, on behalf of the consumer, a refund of the unearned GAP fee pursuant to the GAP agreement. Upon receipt of such notice from the assignee, the original creditor shall provide the unearned GAP fee to the consumer within thirty days.
(b) If the original creditor has not refunded the unearned GAP fee to the consumer within thirty days pursuant to subsection (3)(a) of this section, the assignee shall provide the refund to the consumer, and the original creditor or GAP administrator shall reimburse the assignee for the amount of such refund no later than forty-five days after the original creditor or GAP administrator has received notice from the assignee.
(4) A cancellation fee of not more than twenty-five dollars may be charged to a consumer if the consumer cancels the GAP agreement more than thirty days after the effective date of the GAP agreement.
Source: L. 2023: Entire article added, (HB 23-1181), ch. 425, p. 2502, § 3, effective January 1, 2024.
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 5-9.3-106
What does Colorado Revised Statutes § 5-9.3-106 cover?
Section 5-9.3-106 ("Cancellation of GAP agreement.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 5-9.3-106?
A common citation format is "Colorado Revised Statutes § 5-9.3-106" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 5-9.3-106 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.