Code of Alabama - Title 8: Commercial Law and Consumer Protection - Chapter 37 - Guaranteed Asset Protection Waivers

• 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...
• Section 8-37-2 (Effective January 1, 2018) Definitions
  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...
• 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...
• 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...
• 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...
• 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,...
• 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...
• 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...
• 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...
• 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.

Last modified: May 3, 2021