MN SF1051

Creates Minnesota Statutes chapter 59D to regulate guaranteed asset protection (GAP) waivers for motor vehicle financing, leasing, and retail installment sales.

Exempts GAP waivers from insurance regulation and licensing requirements under chapters 60A-79A and 60K, treating them as contractual debt waiver agreements instead.

Requires retail sellers to obtain contractual liability or other insurance coverage for GAP waiver obligations; other creditors may optionally obtain such coverage.

Mandates GAP waivers include written disclosures covering creditor/borrower information, purchase price, terms, conditions, cancellation procedures, and refund methodologies in clear, understandable language.

Establishes a mandatory 30-day free look period allowing borrowers to cancel waivers without penalty and receive full refunds, with potential pro-rata refunds after the free look period if the waiver permits cancellation.