Montana Code 30-14-2204. Contractual liability or other insurance policies
30-14-2204. Contractual liability or other insurance policies. (1) 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.
Terms Used In Montana Code 30-14-2204
- Borrower: means a debtor, retail buyer, or lessee under a finance agreement. See Montana Code 30-14-2202
- Creditor: means :
(a)the lender in a loan or credit transaction;
(b)the lessor in a lease transaction;
(c)a retail dealer of motor vehicles that provides credit to buyers as part of a retail sale, provided that the dealer complies with the provisions of this part;
(d)the seller in commercial retail installment transactions; or
(e)the assignees of any of the persons set out in subsections (3)(a) through (3)(d) to whom the credit obligation is payable. See Montana Code 30-14-2202
- Finance agreement: means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle. See Montana Code 30-14-2202
- GAP waiver: means a contractual agreement that is part of or a separate addendum to the finance agreement in which 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 a motor vehicle. See Montana Code 30-14-2202
- Insurer: means an insurance company licensed, registered, or otherwise authorized to do business under the insurance laws of this state. See Montana Code 30-14-2202
- 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: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)Coverage under a contractual liability or other insurance policy insuring a GAP waiver must also cover any subsequent assignee upon the assignment, sale, or transfer of the finance agreement.
(3)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 insurance laws of this state.
(4)The cancellation or termination of a contractual liability or other insurance policy may not reduce the insurer’s responsibility for GAP waivers issued by the creditor prior to the date of cancellation or termination and for which premiums have been received by the insurer.