GAP Addendum Quiz PDF
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This document is a quiz about GAP Addendums, a type of insurance addendum that protects auto loan borrowers. It covers questions about the purpose of a GAP Addendum, the borrower's responsibilities, when the addendum terminates, what constitutes a "Constructive Total Loss," and what vehicles are covered/excluded, questions about maximum deductible amounts, cancellation conditions, and documents required for a constructive total loss.
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**Quiz:** 1. **What is the main purpose of the GAP Addendum?** - a\) It provides collision insurance for the vehicle. - b\) It waives the GAP amount in the event of a constructive total loss. - c\) It replaces the need for comprehensive insurance. - d\) It provides vehi...
**Quiz:** 1. **What is the main purpose of the GAP Addendum?** - a\) It provides collision insurance for the vehicle. - b\) It waives the GAP amount in the event of a constructive total loss. - c\) It replaces the need for comprehensive insurance. - d\) It provides vehicle maintenance services. 2. **Which of the following is NOT a responsibility of the borrower according to the GAP Addendum?** - a\) Maintaining collision and comprehensive insurance on the vehicle. - b\) Filing claims with the automobile insurance company. - c\) Processing insurance claims for the seller/creditor. - d\) Notifying the seller/creditor in writing to cancel coverage. 3. **When does the GAP Addendum terminate?** - a\) When the vehicle is stolen. - b\) Upon payment in full of the financing contract. - c\) When the vehicle undergoes maintenance. - d\) Upon reaching 100,000 miles on the vehicle. 4. **What is defined as a \"Constructive Total Loss\"?** - a\) A situation where the vehicle is sold to a new owner. - b\) Accidental damage or theft resulting in the vehicle being declared a total loss. - c\) A minor accident causing partial damage to the vehicle. - d\) A vehicle breakdown requiring repair. 5. **Which of the following vehicles is NOT covered under the GAP Addendum?** - a\) Vehicles used for Uber or Lyft. - b\) Limousines and taxis. - c\) A private passenger automobile. - d\) Light trucks used for personal purposes. 6. **What is the maximum deductible amount waived by the GAP Addendum on the Primary Carrier\'s policy?** - a\) \$500 - b\) \$1,000 - c\) \$2,000 - d\) \$5,000 7. **Under what condition is there no right to cancel the GAP Addendum?** - a\) When a benefit has been provided or is in process. - b\) When the vehicle is used for personal purposes. - c\) After 60 days from the addendum purchase date. - d\) When the financing contract is not paid in full. 8. **Which document is NOT required to be submitted in the event of a Constructive Total Loss?** - a\) The original financing contract. - b\) A copy of the insurance settlement check. - c\) A copy of the vehicle registration. - d\) A copy of the primary insurance settlement. 9. **What happens if a customer misrepresents any material fact related to a benefit request?** - a\) The GAP addendum is voided, and charges are returned. - b\) The customer is charged an additional fee. - c\) The vehicle is repossessed. - d\) The customer is required to purchase new insurance. 10. **What is the process for canceling the GAP Addendum within 30 days of purchase?** - a\) Notify the seller/creditor in writing. - b\) File a claim with the insurance company. - c\) Contact the primary carrier. - d\) Sign an online form through the GAP Administrator's website. **Answer Sheet:** 1. b\) It waives the GAP amount in the event of a constructive total loss. 2. c\) Processing insurance claims for the seller/creditor. 3. b\) Upon payment in full of the financing contract. 4. b\) Accidental damage or theft resulting in the vehicle being declared a total loss. 5. b\) Limousines and taxis. 6. b\) \$1,000. 7. a\) When a benefit has been provided or is in process. 8. c\) A copy of the vehicle registration. 9. a\) The GAP addendum is voided, and charges are returned. 10. a\) Notify the seller/creditor in writing.
