(D) GAP waivers only may be offered in conjunction with a loan that is unrelated to the purchase of a motor vehicle if: (1) the consumer loan has an original repayment term of more than twelve months; and (2) the principal loan amount is greater than four thousand dollars. Section 3730110. For purposes of this chapter: (1) ‘Borrower’ means a debtor, retail buyer, or lessee under a finance agreement. (2) ‘Creditor’ means a person, who in connection with the initial financing of the sale, or leasing, of a motor vehicle, is: (a) a lender in a loan or credit transaction; (b) a lessor in a lease transaction; or (c) a dealer of motor vehicles that provides credit to a borrower, provided that the entity complies with the provisions of this chapter. (3) ‘Finance agreement’ means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle. (4) ‘Free look period’ means the period of time from the effective date of the GAP waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. This period of time must be at least thirty days. (5) ‘Guaranteed asset protection waiver’ or ‘GAP waiver’ means a contractual agreement in which a creditor agrees for a separate charge to cancel or waive all or part of amounts due on a borrower’s finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement must be part of, or a separate addendum to, the finance agreement. (6) ‘Insurer’ means an insurance company licensed, registered, or otherwise authorized to do business under Title 38. (7) ‘Manager’ means a person, by any title, other than an insurer or creditor that performs administrative or operational functions with respect to GAP waivers. (8) ‘Motor vehicle’ means selfpropelled or towed vehicles designed for personal use including, but not limited to, automobiles, trucks, motorcycles, recreational vehicles, allterrain vehicles, snowmobiles, campers, boats, personal watercraft, and trailers for motorcycles, boats, campers, and personal watercraft. (9) ‘Person’ means an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.
(2) a debt cancellation or debt suspension contract being offered in compliance with 12 C.F.R. Part 37, or 12 C.F.R. Part 721, or any other federal law. (C) GAP waivers governed under this chapter are not insurance and are exempt from the provisions of Title 38, as are persons administering, marketing, selling, or offering to sell GAP waivers to borrowers. Section 3730110. For purposes of this chapter: (1) ‘Administrator’ means a person, other than an insurer or creditor that performs administrative or operational functions with respect to GAP waivers. (2) ‘Borrower’ means a debtor, retail buyer, or lessee under a finance agreement. (3) ‘Creditor’ means: (a) a lender in a loan or credit transaction; (b) a lessor in a lease transaction; (c) a dealer of motor vehicles that provides credit to a borrower, provided that the entity complies with the provisions of this chapter; (d) a seller in commercial retail installment transactions; or (e) an assignee of a lender, lessor, dealer, or seller as defined in this item to whom the credit obligation is payable. (4) ‘Finance agreement’ means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle. (5) ‘Free look period’ means the period of time from the effective date of the GAP waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. This period of time must be at least thirty days. (6) ‘Guaranteed asset protection waiver’ or ‘GAP waiver’ means a contractual agreement in which a creditor agrees for a separate charge to cancel or waive all or part of amounts due on a borrower’s finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement must be part of, or a separate addendum to, the finance agreement. (7) ‘Insurer’ means an insurance company licensed, registered, or otherwise authorized to do business under Title 38. (8) ‘Motor vehicle’ means selfpropelled or towed vehicles designed for personal or commercial use including, but not limited to, automobiles, trucks, motorcycles, recreational vehicles, all terrain vehicles, snowmobiles, campers, boats, personal watercraft,