(a)  The general assembly finds that guaranteed asset-protection waivers are not insurance. All guaranteed asset-protection waivers issued prior to and after the date of enactment of this chapter shall not be construed as insurance.

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(b)  The purpose of this chapter is to provide a framework within which guaranteed asset-protection waivers are defined and may be offered within this state.

(c)  This chapter does not apply to:

(1)  An insurance policy offered by an insurer under title 27 including, but not limited to, vendor single interest coverage; or

(2)  A debt cancellation or debt suspension contract being offered in compliance with § 19-3-1 and § 19-5-25 or 12 C.F.R. part 37 or 12 C.F.R. part 721 or other federal law.

(d)  Guaranteed asset-protection waivers governed under this section 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 this section are exempt from this state’s insurance licensing requirements.