HB5907 - Guaranteed Asset Protection Waiver Act

• Establishes regulatory framework for guaranteed asset protection (GAP) waivers on motor vehicle finance agreements, defining them as non-insurance products exempt from state insurance licensing requirements.

• Requires GAP waivers to include written disclosures covering creditor/borrower information, purchase price, terms, conditions, a free look period of at least 30 days with full refund rights, and cancellation procedures.

• Mandates that creditors offering GAP waivers must secure contractual liability or other insurance coverage to back their obligations; retail sellers must obtain such coverage while other creditors may obtain it directly or through administrators.

• Allows borrowers to cancel GAP waivers during the 30-day free look period for full refunds if no benefits were provided, and to receive refunds of unearned portions upon cancellation or early termination of the finance agreement after the free look period.

• Prohibits conditioning credit extension, credit terms, or vehicle sale/lease terms upon GAP waiver purchase; authorizes the Secretary of Financial and Professional Regulation to enforce the Act with penalties up to $500 per violation and $10,000 in aggregate.