Section 8-37-1 (Effective January 1, 2018) Purpose; applicability. (a) The purpose of this chapter is to define guaranteed asset protection waivers (GAP waivers) and to provide that GAP waivers may be offered within this state. (b) This chapter does not apply to either of the following: (1) An insurance policy offered by an insurer under […]
Section 8-37-10 (Effective January 1, 2018) Applicability. Creditors and other persons are not required to comply with this chapter for any GAP waiver entered into prior to January 1, 2018. (Act 2017-392, §2.)
Section 8-37-2 Definitions. THIS SECTION WAS AMENDED BY ACT 2022-179 IN THE 2022 REGULAR SESSION, EFFECTIVE JANUARY 1, 2023. TO SEE THE AMENDED VERSION, SEE THE VERSION LABELED PENDING. For the purposes of this chapter, the following words have the following meanings: (1) ADMINISTRATOR. A person, other than an insurer or creditor, that performs administrative […]
Section 8-37-3 (Effective January 1, 2018) GAP waivers authorized; charges; insurance; creditor requirements. (a) GAP waivers may be offered, sold, or provided to borrowers in this state under this chapter. (b) GAP waivers, at the option of the creditor that offers the GAP waiver, may be sold for a single payment or may be offered […]
Section 8-37-4 (Effective January 1, 2018) Reimbursements; coverage; effect of cancellation or termination. (a) A contractual liability or other insurance policy insuring a GAP waiver 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 waiver issued by the […]
Section 8-37-5 (Effective January 1, 2018) Disclosure requirements. Subject to Section 8-37-7, a creditor that offers a GAP waiver shall disclose, as applicable, in writing and in clear, understandable language that is easy to read, all of the following: (1) The name and address of the initial creditor and the borrower at the time of […]
Section 8-37-6 Cancellation of GAP waiver agreements. (a) Guaranteed asset protection waiver agreements shall be cancellable. GAP waivers shall provide that if a borrower cancels a waiver within the Free Look Period, the creditor, administrator, or other authorized party shall provide the borrower a full refund of the purchase price of the GAP waiver, provided […]
Section 8-37-7 (Effective January 1, 2018) Lease or retail installments sales. Subsection (c) of Section 8-37-3 and Sections 8-37-5 and 8-37-8 of this chapter are not applicable to a GAP waiver offered in connection with a lease or retail installment sale associated with a commercial transaction. (Act 2017-392, §1.)
Section 8-37-8 (Effective January 1, 2018) Enforcement. (a) The Superintendent of Banks may take action which is necessary or appropriate to enforce the provisions of this chapter and to protect GAP waiver holders in this state. After proper notice and opportunity for hearing, the superintendent may do both of the following: (1) Order the creditor, […]
Section 8-37-9 (Effective January 1, 2018) Legislative findings. The Legislature finds that guaranteed asset protection waivers are not insurance. All guaranteed asset protection waivers issued prior to and after January 1, 2018, shall not be construed as insurance. (Act 2017-392, §1.)
