§ 8-37A-1 — Purpose and Application of Chapter

(a) The purpose of this chapter is to define motor vehicle value protection agreements and to authorize the agreements to be offered within this state.
(b) This chapter does not apply to either of the following:
(1) An insurance policy offered by an insurer under the insurance laws of this state.
(2) A debt cancellation or debt suspension contract being offered by a federally regulated financial institution operating under 12 C.F.R. Part 37 or a credit union operating under 12 C.F.R. Part 721 or other federal law; or a debt cancellation or debt suspension contract being offered by a state chartered bank or credit union.
(c) Except as provided in this chapter, motor vehicle value protection agreements governed under this chapter are not insurance and are exempt from the insurance laws of this state. Persons marketing, selling, or offering to sell motor vehicle value protection agreements to borrowers that comply with this chapter are exempt from insurance licensing and insurance regulation requirements of this state.
(d) This chapter applies only to motor vehicle value protection agreements for financing of motor vehicles as defined in this chapter. This chapter does not affect the validity or enforcement of other asset protection waivers, debt cancellation contracts, or debt suspension agreements.

Legislative History

(Act 2022-179, §2.)