1. HOW IS THE CARRIER RATED?

Our underwriter is rated A+ (excellent) by A.M. Best, with written premiums in excess of $470 million.

2. WHAT TYPE OF COLLATERAL IS ELIGIBLE?

A vehicle of less than 10,000 pounds gross vehicle weight, not used for commercial purposes.

3. WHAT IS THE MAXIMUM TERM OF LOAN OR LEASE AVAILABLE?

This protection is available on eligible loans / leases up to eighty-four (84) months in length.

4. HOW ARE PREMIUMS CALCULATED?

Based on the type of program selected (blanket or optional), and the underwriting characteristics of the portfolio being insured, a flat per loan or lease premium is determined. This premium, along with a copy of the debt cancellation and finance agreement is remitted to us monthly. Premiums are fully earned as written, but coverage may be flat cancelled within sixty (60) days of enrollment.

5. WHAT IS THE MAXIMUM GAP WAIVED BY THIS POLICY?

The maximum amount, which can be waived, is $50,000. This does not include any portion of the outstanding balance that results from financing more than 150% of the MSRP of a new car, or 150% of the NADA retail value of a used car (refer to the policy for exact wording and limitations).

6. HOW ARE OUTSTANDING BALANCES CALCULATED?

This is the amount owed by the borrower to clear the account, upon the date of loss. This amount may not include any unearned interest, lease or loan charges, late charges, delinquent payments, uncollected service charges, refundable prepaid taxes and fees, or other charges not associated with the normal amortization of the finance agreement.

7. WHY ARE RATES FOR THE BLANKET PROGRAM LOWER THAN FOR THE OPTIONAL PROGRAM?

If you choose to protect your portfolio on a blanket basis, you spread the risk among all eligible loans, thus allowing a credit to be applied to the rate and lowering the cost per unit. Optional programs, because they are offered on an elective basis to the borrower, have a less favorable spread of risk, and therefore, command a higher premium.

8. HOW ARE CLAIMS PAID?

In the event of a claim, the lender simply submits a notice of loss, detailing the outstanding loan or lease amount, as well as copies of the original finance contract, auto physical damage worksheet, auto physical damage settlement check, payment history, as well as a police report for unrecovered theft losses. In the event that primary insurance was not provided, or maintained, we will verify that the enrolled vehicle is, in fact, a total loss and provide our settlement based on what the borrower’s primary insurance would have paid, had it been available.

9. HOW DOES GAPP FIT WITH BLANKET SINGLE INTEREST COVERAGE?

Blanket Single Interest coverage is considered the same as primary insurance as respects GAPP.

10. CAN GAPP COVER THE BORROWER’S DEDUCTIBLE FOR PRIMARY INSURANCE?

Yes it can, up to $1,000, depending on the program you choose to offer.