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Underwriting
Company
Rated "A" by A.M. Best which will make sales for your loan officers even easier. Incentive contests for loan officers will be developed and funded by Lawrence Victoria Insurance.
What
is GAP?
GAP offers protection against possible financial
liability for individuals who finance or lease a new or used
vehicle. In the event the customer’s vehicle is deemed
totaled or stolen, there usually is a GAP or deficiency balance
between the primary insurance settlement and the current loan/lease
balance. GAP waives the covered deficiency, protecting the
customer from a potential financial liability.
Basic
GAP
- $50,000
maximum loss per occurrence.
- Provides
coverage for up to $1,000 for borrowers deductible.
- Coverage
up to 84 months.
- No
model year restrictions. New and Used vehicles covered and
includes leases.
- Covers
up to two delinquent payments.
Deluxe
GAP
- All
coverage listed under Basic GAP PLUS an additional $1,000
benefit for the borrower toward the purchase of a new vehicle
if financed at your bank.
- You
can sell Basic GAP or Deluxe GAP to your borrower for whatever
cost you deem appropriate. Also, many Banks are encouraging
the dealers who write their indirect paper to sell their
GAP to their customers. Pricing is up to you.
Questions
the Customer may ask:
What
happens if my car is stolen?
Coverage is good anytime the insurance company declares the
vehicle a total loss. This includes theft, collision, fire,
water, hail, wind, earthquakes and all comprehensive perils.
What
do you mean my insurance won’t cover the full amount
of my payoff?
At the time of loss, the insurance company will only pay for
the value of the vehicle according to their source. GAP coverage
will protect you from this deficeitIs GAP coverage cancelable?
What
if I change my mind after enrolling for the coverage?
Yes, the program can be cancelled and a full refund issued
during the first 30 days. Refunds after 30 days will be based
on the Rule of 78’s, as required by state law.
What
happens if a customer’s insurance would lapse?
If no primary insurance carrier exists or the primary insurance
carrier has been declared insolvent, the retail value will
be determined using the National Automobile Association (NADA)
Official Used Guide, based on the information available on
the vehicles options and conditions. The GAP coverage would
then pay the deficiency balance based on that figure.
Highlights:
- "A" rated carriers.
- Covers
two delinquent payments, other programs may not.
- Full
refund to borrower during first thirty days, partial refund
throughout term. Some programs do not offer refunds to your
customers.
- The
bank cost is the same for loans and leases, some programs
surcharge leases.
- No
restrictions on finance companies, some plans limit finance
company benefits.
- Very
limited exclusions.
- Coverage
available on snowmobiles, ATV’s, RV’s, boats,
trailers, etc. without a surcharge.
- Simple
monthly remittance forms.
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