HB 1672 Summary

• Establishes that guaranteed asset protection waivers are not insurance and exempts persons marketing or selling them from state insurance licensing requirements.

• Defines guaranteed asset protection waivers as contractual agreements where a creditor waives amounts owed on a motor vehicle finance agreement in case of total physical damage loss or unrecovered theft, for a separate charge.

• Requires waivers to include a free look period of at least 30 days allowing borrowers to cancel without penalty and receive full refund if no benefits used.

• Mandates clear written disclosures covering purchase price, terms, cancellation procedures, refund methodology, and that credit terms cannot be conditioned on purchasing the waiver.

• Authorizes the Insurance Commissioner to enforce the law and impose penalties up to $500 per violation with a $10,000 maximum for similar violations.