Montana Statutes

§ 33-1-217 — Gap Amount -- Gap Insurance

Montana·Title 33 INSURANCE AND INSURANCE COMPANIES·Ch. 1 ADMINISTRATION AND GENERAL PROVISIONS·Part 2 Definitions and Insurance Coverages

33-1-217 . Gap amount -- gap insurance.

(1)As used in this section, gap amount means the difference between the amount owed by the lessee or borrower under the purchase or lease agreement in the event of total loss of the personal property prior to the expiration of the agreement by theft or physical damage and the actual cash value or portion received by the lessor or creditor from insurance proceeds or from any other person on account of the total loss or destruction of the personal property.
(2)Gap insurance means insurance covering the gap amount that is payable upon the total loss of personal property, which is the subject of a lease or a loan or another credit transaction, occasioned by the theft of or physical damage to the property.
(3)Gap insurance is a type of casualty insuran

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Legislative History

En. Sec. 68, Ch. 472, L. 1999; amd. Sec. 13, Ch. 227, L. 2001.

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