NC S358

Authorizes guaranteed asset protection (GAP) waivers in North Carolina, allowing creditors to offer contractual agreements that waive vehicle finance obligations in cases of total physical damage loss or unrecovered theft.

Establishes that GAP waivers are not insurance products and are exempt from Chapter 58 insurance regulations, though creditors may optionally obtain contractual liability insurance to cover waiver obligations.

Requires GAP waivers to include specific written terms including a minimum 30-day free-look period for cancellation with full refund, clear disclosure of coverage requirements and exclusions, and a statement that the waiver cannot be a condition of credit extension.

Prohibits conditioning credit terms or vehicle purchase/lease terms on the purchase of a GAP waiver and requires refunds of unearned portions upon early termination or cancellation of the underlying vehicle finance agreement.

Grants the Attorney General enforcement authority to issue cease-and-desist orders and impose penalties up to $500 per violation with a maximum of $10,000 in aggregate penalties for similar violations.

Becomes effective October 1, 2013 for all GAP waivers entered into on or after that date.