§ 19-32-2. Definitions. The following are terms defined for purposes of this chapter and are not intended to provide actual terms required in guaranteed asset-protection waivers:

(1) "Administrator" means a person, other than an insurer or creditor who performs administrative or operational functions pursuant to guaranteed asset-protection waiver programs.

(2) "Borrower" means a debtor, retail buyer, or lessee, under a finance agreement.

(3) "Creditor" means:

(i) The lender in a loan or credit transaction;

(ii) The lessor in a lease transaction;

(iii) Any dealer of motor vehicles that provides credit to retail buyers of such motor vehicles, provided that such entities comply with the provisions of this section;

(iv) Any retail seller of motor vehicles as defined herein in commercial retail installment transactions; or

(v) The assignees of any of the foregoing to whom the credit obligation is payable.

(4) "Finance agreement" means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.

(5) "Free-look period" means the period of time from the effective date of the GAP waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. This period of time must be not less than thirty (30) days.

(6) "Guaranteed asset-protection waiver" or "GAP waiver" means a contractual agreement wherein 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, which agreement must be part of, or a separate addendum to, the finance agreement.

(7) "Insurer" means an insurance company licensed, registered, or otherwise authorized to do business under title 27.

(8) "Motor vehicle" means self-propelled or towed vehicles designed for personal or commercial use, including, but not limited to: automobiles, trucks, motorcycles, recreational vehicles, all-terrain vehicles, snowmobiles, campers, boats, personal watercraft, and trailers for motorcycles, boats, campers, and personal watercraft.

(9) "Person" includes an individual, company, association, organization, partnership, business trust, corporation, or other legal entity.

History of Section. (P.L. 2016, ch. 530, § 1.)