HB343 Summary

• Authorizes and regulates guaranteed asset protection (GAP) waivers for motor vehicle loans, which protect borrowers for outstanding loan balances when vehicles are totaled or stolen and insurance payments are insufficient.

• Exempts GAP waivers from insurance regulation and licensing requirements, classifying them as non-insurance financial products when compliant with the act.

• Requires creditors to offer a minimum 30-day "free look period" allowing borrowers to cancel waivers without penalty for full refund, and allows pro rata refunds with cancellation fees up to $75 if cancelled after the free look period.

• Mandates clear written disclosure of waiver terms, purchase price, cancellation procedures, and confirms that GAP waivers cannot be conditioned as requirements for extending credit or financing terms.

• Grants the Superintendent of Banks authority to enforce compliance, order cease and desist actions, and impose civil penalties up to $500 per violation with a maximum aggregate penalty of $10,000 for similar violations.