As used in this chapter, unless the context requires another meaning: “Administrator” means a person, other than an insurer or creditor, that performs administrative or operational functions pursuant to a guaranteed asset protection waiver program. “Borrower” means a debtor, retail buyer, or lessee, under a finance agreement. “Commercial transaction” means a transaction entered into primarily […]
A. Guaranteed asset protection waivers may be offered, sold, or provided to borrowers in the Commonwealth in compliance with this chapter. B. GAP waivers may, at the option of the creditor, be sold for a single payment or may be offered with a monthly or periodic payment option. C. Notwithstanding any other provision of law, […]
A. Contractual liability or other insurance policies insuring GAP waivers shall state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the GAP waivers issued by the creditor and purchased or held by the borrower. B. Coverage under a contractual liability or […]
Guaranteed asset protection waivers shall disclose, as applicable, in writing and in clear, understandable language that is easy to read the following: 1. The name and address of the initial creditor and the borrower at the time of sale; 2. The identity of any administrator if different from the creditor; 3. The purchase price and […]
A. 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. B. In the event […]
Subsection C of § 38.2-6401 and § 38.2-6403 do not apply to a guaranteed asset protection waiver offered in connection with a lease or retail installment sale associated with a commercial transaction. 2019, cc. 799, 800.
GAP waivers governed under this chapter are not insurance and are exempt from the insurance laws of the Commonwealth. Persons marketing, soliciting, negotiating, selling, or offering to sell GAP waivers that comply with this chapter are exempt from the Commonwealth’s licensing requirements. 2019, cc. 799, 800.
This chapter does not apply to: 1. Any insurance policy offered by an insurer under the insurance laws of the Commonwealth; or 2. A debt cancellation or debt suspension contract offered (i) by a bank or credit union regulated pursuant to Title 6.2 or (ii) in compliance with 12 C.F.R. Part 37, 12 C.F.R. Part […]
