Need help navigating the service contract, extended warranty or GAP waiver regulatory process?
If you are a provider, administrator, seller or insurer of service contracts or GAP waivers; or want to be, let us be your guide to all the state service contract/extended warranty and GAP waiver lawsaround the country. We can help guide you through the licensing and registration hoops; and also help you establish and maintain a compliant service contract, extended warranty or GAP program.
The Service Contracts Compass is designed to assist companies like yours by providing valuable information about changes in laws and regulations which may impact your service contract or GAP waiver programn and by offering compliance consulting services that can help you keep pace with the insurance laws. service contract laws and GAP waiver laws that govern your industry.
Depending on how your service contract program is structured, or if you are just starting out, some or all of the questions below may be worth exploring…and we can help!
– Do you wonder about recent law changes and need help implementing them accurately and timely?
– Do you need help developing a strategy to expand your program into other states?
– Are you considering the acquisition of an existing provider or program and need a due diligence audit?
– Do you and your program partners have the right license(s) for the kinds of service contracts that you offer or sell?
– Do you qualify for any exemptions that you may be unaware of?
– Are you calculating and returning refunds accurately in every jurisdiction?
– Could you benefit from a limited scope operational audit conducted by someone that is “on your team” to help identify potential regulatory problems before a regulator does?
– Do you have a knowledgeable resource who can offer issue-by-issue and state-by-state support for regulatory matters that may arise regarding your service contract program?
Be proactive rather than reactive! Whether it’s regulatory filing support, contract analysis, or help communicating with a regulator, we have the experience and expertise in the world of service contract laws to offer strategies and solutions for every aspect of your program.
House Bill 1181 has been introduced in the State of Colorado. The bill intends to codify regulations applicable to GAP waivers previously addressed in regulations of the Uniform Consumer Credit Code.
According to materials filed with this legislation, codifying and updating the GAP agreement rules that are in the code of Colorado regulations, the general assembly will provide Colorado consumers with stability, predictability, and efficiency regarding GAP agreements, while ensuring a fair and viable market for GAP agreement providers and making important updates to the laws that govern these agreements.
Specifically, the legislation:
Sets conditions and provisions that must be a part of any GAP agreement in order for it to be valid and for a creditor to receive an additional charge or fee in relation to the GAP agreement;
Establishes the method by which the deficiency balance is calculated and what the consumer will be owed pursuant to the GAP agreement in the event of a total loss;
Details when a consumer must submit the consumer’s GAP agreement claim after a total loss;
Establishes the maximum fee that may be charged for a GAP agreement, which must not exceed 5% of the amount financed in the consumer credit transaction; and Prohibits the sale of a GAP agreement in specified circumstances.
The information on this website is provided solely for informational purposes and presents only highly condensed summaries or general information relating to the topics presented. Therefore, it should not be relied upon as a complete record for purposes of regulatory compliance, nor is it intended to furnish legal advice adequate to any particular circumstances. (c) Copyright Shirley F. Kerns 2016
