O.C.G.A. § 33-63-3 — Deﬁnitions

The following terms are 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, that 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: (A) The lender in a loan or credit transaction; (B) The lessor in a lease transaction; (C) Any retail installment seller that provides credit to any retail buyer of motor vehicles, provided that such entity complies with the provisions of this chapter; (D) The seller in commercial retail installment transactions; or (E) The assignees of any of the creditors listed in subparagraphs (A) through (D) of this paragraph 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 guaranteed asset protection waiver until the date the borrower may cancel the guaranteed asset protection waiver without penalty, fees, or costs to the borrower. This period of time must not be shorter than 30 days. (6) ‘‘Guaranteed asset protection 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 1066 33-63-4 addendum to, the ﬁnance agreement or a contractual agreement wherein a creditor agrees for a separate charge to cancel or waive all or part of the excess wear and use charges owed by the borrower to the creditor under the lease contract when the borrower returns a leased vehicle to the creditor at termination of the lease, which agreement must be part of, or a separate addendum to, the lease contract. (7) ‘‘Insurer’’ means an insurance company licensed, registered, or otherwise authorized to do business under the insurance laws of this state. (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, campers, boats, personal watercraft, and motorcycle, boat, camper, and personal watercraft trailers. (9) ‘‘Person’’ includes an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity. (10) ‘‘Retail buyer’’ shall have the same meaning as provided in Code Section 10-1-31. (11) ‘‘Retail installment seller’’ shall have the same meaning as provided in Code Section 10-1-31. History. — Code 1981, § 33-63-3, enacted by Ga. L. 2008, p. 1097, § 1/SB 470; Ga. L. 2014, p. 181, § 6/HB 610. 33-63-4. Offering, selling, or providing to borrowers guaranteed asset protection waivers. (a) Guaranteed asset protection waivers may be offered, sold, or provided to borrowers in this state in compliance with this chapter. (b) 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. (c) 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. Section 1601, et seq., and its implementing regulations, as they may be amended from time to time, must be separately stated and is not to be considered a ﬁnance charge or interest. (d) A retail installment seller must insure its guaranteed asset protection waiver obligations under a contractual liability or other 1067 33-63-4 insurance policy issued by an insurer. A creditor other than a retail installment seller may insure its guaranteed asset protection waiver obligations under a contractual liability policy or other such policy issued by an insurer. Any such insurance policy may be directly obtained by a creditor or retail installment seller or may be procured by an administrator to cover a creditor’s or retail installment seller’s obligations. However, retail installment sellers that are lessors on motor vehicles are not required to insure obligations related to guaranteed asset protection waivers on such leased vehicles. (e) The guaranteed asset protection waiver shall remain a part of the ﬁnance agreement upon the assignment, sale, or transfer of such ﬁnance agreement by the creditor. (f ) Neither the extension of credit, the term of credit, nor the term of the related motor vehicle sale or lease may be conditioned upon the purchase of a guaranteed asset protection waiver. (g) Any creditor that offers a guaranteed asset protection waiver must report the sale of, and forward funds received on, all such waivers to the designated party, if any, as prescribed in any applicable administrative services agreement, contractual liability policy, other insurance policy or other speciﬁed program documents. (h) Funds received or held by a creditor or administrator and belonging to an insurer, creditor, or administrator pursuant to the terms of a written agreement must be held by such creditor or administrator in a ﬁduciary capacity. (i) A retail installment seller that offers, provides, or sells a guaranteed asset protection waiver in connection with the sale of a motor vehicle shall not be required to insure its guaranteed asset protection waiver if the retail installment seller does both of the following: (1) Maintains, or has a parent company that maintains, a net worth or stockholders’ equity of at least $50 million, provided the parent company guarantees the obligations of the retail installment seller arising from guaranteed asset protection waivers underwritten pursuant to this subsection; and (2) Files a copy of its Form 10-K or Form 20-F disclosure statements, or, if it does not ﬁle with the United States Securities and Exchange Commission, a copy of its audited ﬁnancial statements reported on generally accepted accounting principles. If the retail installment seller’s ﬁnancial statements are consolidated with those of its parent company, then the retail installment seller may comply with the provisions of this paragraph by ﬁling the statements of its parent company. The statement shall be ﬁled with the Commissioner at least 30 days prior to the retail installment seller’s initial offering 1068 33-63-6 or delivering a guaranteed asset protection waiver, and thereafter the statement shall be ﬁled with the Commissioner annually. History. — Code 1981, § 33-63-4, enacted by Ga. L. 2008, p. 1097, § 1/SB 470; Ga. L. 2009, p. 8, § 33/SB 46; Ga. L. 2012, p. 1350, § 11/HB 1067. 33-63-5. Contractual liability or other insurance policies.