NC S425

Creates new Article 48 governing vehicle value protection agreements (VVPAs) that provide benefits for reduction of finance agreement deficiency balances, replacement vehicle purchases, or diminished value/depreciation upon adverse vehicle events.

Establishes financial security requirements for VVPA providers: either reimbursement insurance with $10-15 million in surplus, or provider net worth of at least $100 million with SEC filing or audited financial statements.

Requires VVPAs to include 30-day minimum free-look period allowing full refunds if no benefits claimed, clear written disclosures of terms/conditions/exclusions, and prohibits conditioning credit on VVPA purchase.

Distinguishes VVPAs from guaranteed asset protection (GAP) waivers and exempts both from insurance regulation under Chapter 58 of North Carolina General Statutes.

Becomes effective January 1, 2022, applying to agreements entered into on or after that date; Attorney General empowered to enforce with penalties up to $500 per violation and $10,000 aggregate.