For purposes of this chapter:
(1) "Borrower" means a debtor, retail buyer, or lessee under a finance agreement.
(2) "Creditor" means a person, who in connection with the initial financing of the sale, or leasing, of a motor vehicle, is:
(a) a lender in a loan or credit transaction;
(b) a lessor in a lease transaction; or
(c) a dealer of motor vehicles that provides credit to a borrower, provided that the entity complies with the provisions of this chapter.
(3) "Finance agreement" means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.
(4) "Free-look period" means the period of time from the effective date of the GAP waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. This period of time must be at least thirty days.
(5) "Guaranteed asset protection waiver" or "GAP waiver" means a contractual agreement in which a creditor agrees for a separate charge to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement must be part of, or a separate addendum to, the finance agreement.
(6) "Insurer" means an insurance company licensed, registered, or otherwise authorized to do business under Title 38.
(7) "Manager" means a person, by any title, other than an insurer or creditor that performs administrative or operational functions with respect to GAP waivers.
(8) "Motor vehicle" means self-propelled or towed vehicles designed for personal use including, but not limited to, automobiles, trucks, motorcycles, recreational vehicles, all-terrain vehicles, snowmobiles, campers, boats, personal watercraft, and trailers for motorcycles, boats, campers, and personal watercraft.
(9) "Person" means an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.
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."