Minnesota Statutes 59D.05 – Contractual Liability or Other Insurance Policies
Subdivision 1.Reimbursement or payment statement.
Contractual liability or other insurance policies insuring GAP waivers must state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the GAP waivers issued by the creditor and purchased or held by the borrower.
Subd. 2.Coverage of assignee.
Terms Used In Minnesota Statutes 59D.05
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
Terms Used In Minnesota Statutes 59D.05
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
Coverage under a contractual liability or other insurance policy insuring a GAP waiver must also cover a subsequent assignee upon the assignment, sale, or transfer of the finance agreement.
Subd. 3.Term.
Coverage under a contractual liability or other insurance policy insuring a GAP waiver must remain in effect unless canceled or terminated in compliance with applicable laws.
Subd. 4.Effect of cancellation or termination.
The cancellation or termination of a contractual liability or other insurance policy must not reduce the insurer’s responsibility for GAP waivers issued by the creditor before the date of cancellation or termination and for which a premium has been received by the insurer.