(A) The purpose of this chapter is to provide a framework within which guaranteed asset protection (GAP) waivers are defined and may be offered within this State.
(B) This chapter does not apply to:
(1) an insurance policy offered by an insurer under Title 38; or
(2) a debt cancellation or debt suspension contract being offered by any national or state-chartered bank or federal or state-chartered credit union in compliance with 12 C.F.R. Part 37, or 12 C.F.R. Part 721, or any other federal law.
(C) GAP waivers governed under this chapter are not insurance and are exempt from the provisions of Title 38, as are persons administering, marketing, selling, or offering to sell GAP waivers to borrowers.
(D) GAP waivers only may be offered in conjunction with a loan that is unrelated to the purchase of a motor vehicle if:
(1) the consumer loan has an original repayment term of more than twelve months; and
(2) the principal loan amount is greater than four thousand dollars.
HISTORY: 2015 Act No. 31 (S.441), Section 2, eff June 1, 2015.
Editor's Note
2015 Act No. 31, Section 3, provides as follows:
"SECTION 3. This act takes effect upon approval by the Governor and applies to all GAP waivers which become effective one hundred eighty days after the effective date."