218.0148 Guaranteed asset protection agreements.

321 words·~1 min read·/wi/chapter-218/218-0148-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. In this section:

(a)“Administrator” means a person, other than an insurer or creditor, that performs administrative or operational functions pursuant to guaranteed asset protection waiver programs.

(b)“Borrower” means a retail buyer who purchases a motor vehicle under a retail installment contract, a lessee, or any other debtor to whom a creditor extends credit for the purchase or refinancing of a motor vehicle.

(c)“Creditor” means a sales finance company, including any motor vehicle dealer described in s. 218.0101

(b), a lessor, or any other lender that extends credit to a borrower for the purchase or refinancing of a motor vehicle, but does not include a depository institution, as defined in 12 USC 1813

(c)(1), or any state or federal credit union.

(d)“Finance agreement” means any of the following:

1. A retail installment contract.

2. A loan agreement in which a creditor extends credit to a borrower for the purchase or refinancing of a motor vehicle.

3. A consumer lease.

(e)“Guaranteed asset protection waiver” means a contractual obligation under which a creditor agrees, for a separate charge, to cancel or waive all or part of amounts due on a borrower’s finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle specified in the finance agreement.

(2)Guaranteed asset protection waivers authorized.

(a)Subject to par.

(b), guaranteed asset protection waivers may be offered and sold to borrowers in this state in compliance with the requirements under this section. A guaranteed asset protection waiver must be part of, or a separate addendum to, the finance agreement for the motor vehicle.

(b)A creditor may not require a borrower to purchase a guaranteed asset protection waiver.

(c)Guaranteed asset protection waivers may, at the option of the creditor, be offered and sold upon a single payment or with required periodic payments.