New York A03706 authorizes service charges for gap waivers in motor vehicle creditor gap insurance.

New York A03706 amends the insurance law and personal property law to allow service charges for gap waivers in motor vehicle creditor gap insurance. Specifically, it permits a separate charge not exceeding the cost of the insurance plus a service charge of up to $750. This waiver offer can be contingent on the buyer paying this charge. The bill also clarifies that the charge for the waiver can be included in the calculation of payments due under a retail installment contract or in the capitalized cost. This act takes effect 30 days after becoming law.

New York A03706 authorizes service charges for gap waivers in motor vehicle creditor gap insurance.

New York A03706 amends the insurance law and personal property law to allow service charges for gap waivers in motor vehicle creditor gap insurance. Specifically, it permits a separate charge not exceeding the cost of the insurance plus a service charge of up to $750. This waiver offer can be contingent on the buyer paying this charge. The bill also clarifies that the charge for the waiver can be included in the calculation of payments due under a retail installment contract or in the capitalized cost. This act takes effect 30 days after becoming law.