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Questions and Answers
What is the maximum amount covered by GAP as the primary insurance deductible for a vehicle?
What is the maximum amount covered by GAP as the primary insurance deductible for a vehicle?
- $1,000 (correct)
- $1,500
- $2,000
- $500
What is the maximum number of occurrences of GAP deductible assistance allowed in a 12 month period?
What is the maximum number of occurrences of GAP deductible assistance allowed in a 12 month period?
- 4
- 2 (correct)
- 3
- 1
At what point can member purchase GAP assistance?
At what point can member purchase GAP assistance?
- Only during the first 24 payments
- Anytime during the life of the loan (correct)
- Within 60 days of loan closing
- Only at loan closing
What is required for a vehicle to be considered protected under this program?
What is required for a vehicle to be considered protected under this program?
What GAP Loans are allowed for watercraft protection?
What GAP Loans are allowed for watercraft protection?
What is the maximum benefit provided by the Guaranteed Asset Protection (GAP) for all vehicle types?
What is the maximum benefit provided by the Guaranteed Asset Protection (GAP) for all vehicle types?
Which of the following vehicles is excluded from the GAP protection eligibility criteria?
Which of the following vehicles is excluded from the GAP protection eligibility criteria?
What is the maximum loan-to-value ratio applicable under the GAP program?
What is the maximum loan-to-value ratio applicable under the GAP program?
What happens if a vehicle is declared a total loss while being protected by GAP?
What happens if a vehicle is declared a total loss while being protected by GAP?
What is the maximum term for loans under the GAP program?
What is the maximum term for loans under the GAP program?
Which of these statements regarding GAP is incorrect?
Which of these statements regarding GAP is incorrect?
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Study Notes
Guaranteed Asset Protection (GAP)
- GAP helps to cover the difference between the insurance settlement and the outstanding loan balance for a vehicle that is stolen or declared a total loss
- GAP is available for various vehicles like motor vehicles, powersports, watercrafts and RVs
- GAP is available for new and used vehicles, with restrictions on age and utilization purposes
- GAP is available for loans or leases that are secured solely by the vehicle
- GAP is not available for specific financing structures including balloon loans, interest-only loans, real estate secured loans, and signature loans
GAP Coverage
- Loss or damage incidents during repossession or placement of the vehicle in the possession of the credit union or its employees are not protected by GAP
- GAP can cover up to $1,000 of the vehicle insurance deductible
- The GAP plan includes up to 5 skipped payments during the term of the financial agreement (missed payments authorized by the credit union or caused by delinquency)
- GAP is available for purchase at any point during the life of the loan
- Deductible assistance covers a maximum of $1,000 per deductible, with a limit of 2 occurrences within a 12-month period
- Maximum GAP benefit per vehicle is $50,000
- Maximum loan amount eligible for GAP coverage varies by vehicle type: 100,000formotorvehiclesandpowersports;100,000 for motor vehicles and powersports; 100,000formotorvehiclesandpowersports;50,000 for watercrafts; $125,000 for RVs
- Maximum loan term eligible for GAP coverage is 84 months for all vehicle types
- Maximum loan-to-value (LTV) ratio is 110% for all vehicle types, calculated based on MSRP (Manufacturer's Suggested Retail Price) for most vehicles and JD Power Clean Retail for other vehicles
- GAP fees can be paid as a single fee, either included in the loan payment or paid upfront, or as a monthly fee.
- Non-refundable single GAP fees are available for all vehicle types.
- Refundable single GAP fees are not available.
- Monthly GAP fees are not available.
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