Podcast
Questions and Answers
The member can add the GAP fee as part of the loan amount.
The member can add the GAP fee as part of the loan amount.
- True (correct)
- False
What is the maximum deductible amount that can be covered by GAP coverage?
What is the maximum deductible amount that can be covered by GAP coverage?
- $2,000
- $1,000 (correct)
- $500
- No Limit
When can members purchase GAP coverage during the loan term?
When can members purchase GAP coverage during the loan term?
- Only at loan initiation
- Within the first month of the loan
- Within the first 90 days of the loan.
- Anytime during the life of the loan (correct)
How long can the credit union take to submit a claim after the vehicle is declared a total loss?
How long can the credit union take to submit a claim after the vehicle is declared a total loss?
When making a GAP claim how much is waived off the loan amount if a replacement vehicle is financed by ACCU within 120 days?
When making a GAP claim how much is waived off the loan amount if a replacement vehicle is financed by ACCU within 120 days?
What is the primary purpose of Guaranteed Asset Protection (GAP)?
What is the primary purpose of Guaranteed Asset Protection (GAP)?
A GAP Fee can be refunded within how many days of purchase.
A GAP Fee can be refunded within how many days of purchase.
Which aspect is typically covered under a GAP waiver agreement?
Which aspect is typically covered under a GAP waiver agreement?
What could be a likely maximum term duration for GAP coverage?
What could be a likely maximum term duration for GAP coverage?
What is 'Maximum Loan Amount' covered by a GAP agreement?
What is 'Maximum Loan Amount' covered by a GAP agreement?
What does the loan-to-value ratio indicate in the context of a vehicle loan?
What does the loan-to-value ratio indicate in the context of a vehicle loan?
A Member can have up to 5 skipped payments caused by delinquency and still be eligible to use GAP protection if a covered event occurs.
A Member can have up to 5 skipped payments caused by delinquency and still be eligible to use GAP protection if a covered event occurs.
Flashcards
GAP Fee
GAP Fee
A single fee included in a loan payment or paid separately, covering the difference between the loan balance and the vehicle's actual value in case of a total loss.
Primary Insurance
Primary Insurance
Protects up to $1,000 of your vehicle insurance deductible where allowed by state law.
Right to Purchase
Right to Purchase
The ability to purchase the GAP coverage at any point during the loan duration.
Claims Submission
Claims Submission
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GAP Plus
GAP Plus
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GAP Plus Waiver
GAP Plus Waiver
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Claims Administration
Claims Administration
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GAP
GAP
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GAP Coverage
GAP Coverage
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Refundable GAP
Refundable GAP
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Non-refundable GAP
Non-refundable GAP
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Monthly GAP Fee
Monthly GAP Fee
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Maximum Benefit
Maximum Benefit
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Maximum Loan Amount
Maximum Loan Amount
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Maximum Loan Term
Maximum Loan Term
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Study Notes
Guaranteed Asset Protection (GAP)
- GAP protects against financial loss if a vehicle is stolen or totaled, covering the difference between insurance settlement and loan balance.
- Plan details are available in the waiver agreement.
Vehicle Coverage
- Motor Vehicle:
- Single GAP fee (Refundable/Non-refundable Monthly): Yes/Yes
- Maximum Benefit: $50,000
- Maximum Loan Amount: $100,000
- Maximum Loan Term: 84 Months
- Maximum Loan-to-Value Ratio: 115%
- Power Sport:
- Single GAP fee (Refundable/Non-refundable Monthly): Yes/Yes
- Maximum Benefit: $50,000
- Maximum Loan Amount: $50,000
- Maximum Loan Term: 84 Months
- Maximum Loan-to-Value Ratio: 115%
- Watercraft:
- Single GAP fee (Refundable/Non-refundable Monthly): N/A/N/A
- Maximum Benefit: $50,000
- Maximum Loan Amount: $100,000
- Maximum Loan Term: 84 Months
- Maximum Loan-to-Value Ratio: 115%
- RV:
- Single GAP fee (Refundable/Non-refundable Monthly): Yes/Yes
- Maximum Benefit: $50,000
- Maximum Loan Amount: $125,000
- Maximum Loan Term: 84 Months
- Maximum Loan-to-Value Ratio: 115%
Eligible Assets
- Motor Vehicles: Private passenger cars, vans, light trucks, motorcycles, ATVs, snowmobiles, inflatables.
- Power Sports: Motorcycles, ATVs, snowmobiles, personal watercraft (e.g., jet skis).
- Watercraft: Inboards, Outboards, stern drives, sailboats, houseboats, conventional trailers, fifth wheels, travel trailers.
- RV: Vans, conventional trailers, fifth wheel, travel trailer, folding camping trailers, truck campers, type A, B, and C motor homes
Eligible Loans
- Traditional closed-end loans
- Refinances (different lender)
- Collateral lending (other purposes)
Ineligible Loans
- Balloon loans
- Interest-only loans
- Real estate secured loans
- Signature loans
Incidents Not Protected
- Loss or damage if the vehicle is repossessed by the credit union or its agents.
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Description
Test your knowledge on Guaranteed Asset Protection (GAP) and its coverage specifics for motor vehicles, power sports, watercraft, and RVs. This quiz covers key aspects such as maximum benefits, loan amounts, and GAP fee types. Evaluate your understanding of how GAP safeguards against financial loss due to theft or totaling of vehicles.
