AFSA Publishes Guaranteed Asset Protection (GAP) White Paper June 05, 2017 On June 2, AFSA’s State Government Affairs department published its Guaranteed Asset Protection (GAP) white paper. GAP agreements have been used to ensure that in the case of total loss or unrecovered theft of a vehicle, any debt owed by the borrower that remains following the application of primary auto insurance would be dismissed by the creditor. Although GAP products have been available for at least three decades, how they are regulated varies widely state to state. AFSA’s white paper outlines various aspects concerning the regulation of GAP products including: whether GAP products are classified as an insurance or waiver; who pays the refund when a GAP policy is cancelled; the legislative trends concerning GAP in recent years; and legislation introduced in various states during the 2017 legislative session. AFSA is committed to monitoring the ongoing evolution of the laws and regulations surrounding these products. AFSA’s State Government Affairs team publishes white papers monthly, and members can find previous papers on AFSA’s website under the State Resources section.