What must be disclosed if a guaranteed installment contract is canceled?

In the context of a guaranteed installment contract, when it is canceled, it is important to disclose the conditions regarding the cash surrender value. This refers to the amount that the buyer is entitled to receive back from the insurance or investment associated with the contract. If the contract is canceled, the guarantee typically indicates that the buyer has the right to receive the cash surrender value rather than the full amount paid or an immediate refund.

By focusing on the cash surrender value, it ensures compliance with legal and ethical standards in the industry. This transparency protects the buyer's rights and clarifies their options following the cancellation of the contract. It allows the buyer to understand precisely what they can expect to receive, which is crucial for informed decision-making.

Thus, emphasizing the entitlement to only the cash surrender value ensures that all parties are aware of their rights and obligations under the terms of the contract.