Claims Process & Documentation Flashcards
7 cards from real GAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Claims Process & Documentation flashcards as text
What document must the claimant provide to show the exact loan payoff amount owed to the lender at the time of the total loss?
Answer: A 10-day payoff quote from the lender dated near the loss date
A 10-day payoff quote dated close to the loss date reflects the accurate outstanding balance including accrued interest, which is the figure GAP uses to calculate the deficiency.
After a total loss, the primary insurer pays the ACV directly to the lienholder. The lienholder then applies the payment and provides a deficiency balance. What should the GAP claimant submit next?
Answer: Documentation of the deficiency balance confirmation from the lienholder
The GAP administrator needs the lienholder's deficiency balance confirmation to verify what remains owed after the primary settlement was applied.
Which document is used to verify the vehicle's mileage at the time of loss, which can affect depreciation calculations in the GAP claim?
Answer: The primary insurer's total loss inspection or appraisal report
The primary insurer's total loss appraisal report typically records the vehicle's mileage at inspection, which is used to determine the ACV and thus affects the deficiency calculation.
A GAP claim is submitted six months after the total loss date. The GAP agreement requires claims to be filed within 90 days of loss. What is the likely outcome?
Answer: The claim may be denied for failure to comply with the filing deadline
GAP agreements include filing deadlines, and failure to submit within the required timeframe can result in claim denial for non-compliance with contract terms.
What is the role of the 'certificate of total loss' issued by the primary insurer in the GAP claims process?
Answer: It officially declares the vehicle a total loss and triggers the GAP claim eligibility review
The total loss declaration from the primary insurer is the trigger document that confirms a covered loss event has occurred and initiates the GAP claim review.
A borrower purchased a vehicle with no down payment and rolled negative equity from a prior trade-in into the new loan. How does this affect the GAP claim calculation?
Answer: Negative equity rolled in is automatically excluded from the GAP benefit
Most GAP products exclude negative equity rolled in from a prior trade, as the product is designed to cover the depreciation gap on the current vehicle only.
Which party typically receives the GAP benefit payment after a successful claim is processed?
Answer: The lienholder (lender), to satisfy the remaining loan deficiency
GAP benefit payments are made directly to the lienholder to pay off the remaining deficiency balance on the borrower's behalf.