HB343 Alabama 2017 Session

Summary

Primary Sponsor

Jimmy Martin

Republican

Session

Regular Session 2017

Title

Motor vehicles, sales and loan transactions, guaranteed asset protection waivers authorized, coverage of loan balance if vehicle a total loss or stolen, Superintendent of Banks authorized to assess penalties, Secs. 8-37-1 to 8-37-9, inclusive, added

Summary

This bill would authorize and regulate guaranteed asset protection waivers (GAP waivers) for motor vehicle loans in Alabama, and give the Superintendent of Banks enforcement power.

What This Bill Does

It creates a new Chapter 37 in Title 8 to govern GAP waivers, defines key terms, and clarifies that GAP waivers are not insurance. GAP waivers may be offered in Alabama with pricing disclosed separately from the loan, may be sold as a single payment or periodic payments, and must be handled in compliance with consumer protections including a free-look period and refunds. The bill also sets insurer and recorder requirements, prohibits conditioning credit on purchase of a GAP waiver, and authorizes penalties for violations by the Superintendent of Banks, with an effective date of January 1, 2018.

Who It Affects

• Borrowers/consumers who obtain motor vehicle loans and may purchase GAP waivers, with new protections such as disclosure, refund rights, and cancellation procedures.
• Creditors and retail sellers who offer GAP waivers (lenders, dealers) who must comply with the new requirements, provide insurance coverage, maintain records, report sales, and may face penalties for violations.

Key Provisions

• Creates Chapter 37 of Title 8 to authorize and regulate GAP waivers, defines terms, clarifies that GAP waivers are not insurance, and assigns enforcement to the Superintendent of Banks, effective 2018-01-01.
• Requires separate disclosure of GAP waiver costs, allows either a single payment or periodic payments, prohibits conditioning credit on purchasing a GAP waiver, mandates insurance coverage arrangements, mandatory recordkeeping/reporting, refund and cancellation procedures, and penalties for noncompliance.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles