SB 343 Summary

• Renames and restructures the "Guaranteed Asset Protection Waiver Act" as the "Motor Vehicle Financial Protection Products Act" to regulate broader financial protection products for motor vehicles beyond just GAP waivers.

• Expands the scope to include two types of motor vehicle financial protection products: debt waivers (guaranteed asset protection waivers and excess wear and use waivers) and vehicle value protection agreements (which provide benefits toward finance deficiency reduction or replacement vehicle purchase/lease).

• Establishes that motor vehicle financial protection products cannot be conditioned on credit extension or terms, must include clear written disclosures, provide a minimum 30-day free look period for cancellation with full refunds if no benefits received, and specify refund methodologies and cancellation procedures.

• Requires providers of vehicle value protection agreements to maintain financial security through one of three options: reimbursement insurance with specified capital requirements, funded reserves (40% of gross consideration) plus a financial security deposit (5% minimum, not less than $25,000), or parent company net worth of $100,000,000.

• Transfers enforcement authority from the Commissioner of the Office of Financial and Insurance Regulation to the Department of Attorney General, which may issue cease-and-desist orders and pursue remedies under the Michigan Consumer Protection Act; exempts debt waivers offered by banks/credit unions and products in commercial transactions from certain requirements.