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 or operational functions pursuant to guaranteed asset protection waiver programs.
(2) BORROWER. A debtor, retail buyer or lessee, under a finance agreement.
(3) CREDITOR means any of the following:
a. The lender in a loan or credit transaction.
b. The lessor in a lease transaction.
c. Any retail seller of motor vehicles in a retail installment transaction.
d. The seller in commercial retail installment transactions.
e. The assignees of any of the foregoing to whom the credit or lease obligation is payable.
(4) FINANCE AGREEMENT. A loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.
(5) FREE LOOK PERIOD. The period of time from the effective date of the GAP waiver until the date the borrower may cancel the GAP waiver without penalty, fees, or costs to the borrower. This period of time shall not be shorter than 30 days.
(6) GUARANTEED ASSET PROTECTION WAIVER or GAP WAIVER. 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 shall be part of, or a separate addendum to, the finance agreement.
(7) INSURER. An insurance company licensed, registered, or otherwise authorized to do business under the insurance laws of this state.
(8) MOTOR VEHICLE. Self-propelled or towed vehicles designed for personal or commercial use, including but not limited to automobiles, trucks, motorcycles, recreational vehicles, all terrain vehicles, snowmobiles, campers, boats, personal watercraft, and motorcycle, and boat, camper and personal watercraft trailers.
(9) PERSON. An individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.
Last modified: May 3, 2021