§ 45-1104 — Guaranteed asset protection waivers; not insurance; exempt from insurance laws; sale options; separate statement of cost; part of finance agreement; sale and marketing restrictions

(1) Guaranteed
asset protection waivers offered, sold, or provided to borrowers under the
terms of the Guaranteed Asset Protection Waiver Act are not insurance and
are exempt from the insurance laws of this state. Persons marketing, selling,
or offering to sell guaranteed asset protection waivers to borrowers that
comply with the act are exempt from this state's insurance licensing requirements.
(2) Guaranteed
asset protection waivers may, at the option of the creditor, be sold for a
single payment or may be offered with a monthly or periodic payment option.
(3) Notwithstanding
any other provision of law, any cost to the borrower for a guaranteed asset
protection waiver entered into in compliance with the federal Truth in Lending
Act, 15 U.S.C. 1601 et seq., and its implementing regulations, as such act
and regulations existed on July 15, 2010, shall be separately stated and is
not to be considered a finance charge or interest.
(4) The guaranteed asset
protection waiver remains a part of the finance agreement upon the assignment,
sale, or transfer of such finance agreement by the creditor.
(5) Neither
the extension of credit, the terms of the credit, nor the terms of the related
motor vehicle sale or lease may be conditioned upon the purchase of a guaranteed
asset protection waiver.
(6) Persons marketing, selling, or offering
to sell guaranteed asset protection waivers to a borrower shall not market
such guaranteed asset protection waivers to any borrower or potential borrowers
as being insured under a contractual liability or other insurance policy issued
by an insurer.

Legislative History

Source: Laws 2010, LB571, § 4.