SB 980 Summary

• Establishes a regulatory framework for guaranteed asset protection waivers on motor vehicle finance agreements, effective January 1, 2020, exempting them from insurance licensing requirements if they comply with the law.

• Requires waivers to include a minimum 30-day free look period allowing borrowers to cancel and receive refunds for unearned portions, with cancellation permitted after expiration upon written notice within 90 days.

• Mandates disclosure to borrowers in easily readable language including creditor/administrator names, purchase price, terms, conditions, exclusions, benefit application procedures, refund calculation methods, and confirmation that waiver purchase is not required for credit.

• Prohibits creditors from requiring waiver purchase as a condition of extending credit or leasing/selling vehicles, and requires motor vehicle dealers to insure their waiver obligations under an insurance policy.

• Authorizes the Commissioner of Consumer Protection to impose civil penalties up to $500 per violation or $10,000 in aggregate for similar violations, and to adopt implementing regulations.