Client Advisory Services 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 Client Advisory Services flashcards as text
When advising a leasing client about GAP coverage, what key distinction should an advisor communicate compared to a financed purchase?
Answer: Many lease agreements include built-in GAP coverage, but advisors should verify the terms
Many lease contracts include GAP-like provisions, but the coverage terms vary widely, so advisors must review the specific lease agreement before recommending additional GAP.
A client is deciding between a dealer-sold GAP product and a GAP product offered by their credit union. What is a key advisory point?
Answer: Credit union GAP products typically have lower premiums and may offer refunds on unused portions
Credit union and lender-sold GAP products often carry lower premiums and pro-rated refund provisions compared to dealer-financed GAP add-ons.
Which regulatory requirement is most important for a GAP advisor to communicate to a client at the point of sale?
Answer: Clients must be informed of the right to cancel GAP coverage and receive a pro-rated refund
Federal and state consumer protection regulations generally require that clients be informed of their cancellation rights and any applicable refund provisions for GAP coverage.
A client asks an advisor what happens to their GAP coverage if they sell their vehicle before the loan is paid off. What is the correct answer?
Answer: The GAP coverage terminates, and the client may be eligible for a pro-rated refund
GAP coverage is tied to the specific vehicle and loan; when the vehicle is sold and the loan is paid off, the GAP policy terminates and a refund of the unused premium may be available.
What is the advisor's responsibility when a client experiences a total loss and needs to file a GAP claim?
Answer: The advisor should guide the client to notify their primary insurer first, then initiate the GAP claim process with required documentation
Advisors should counsel clients to promptly notify their primary insurer to establish the ACV settlement, then coordinate with the GAP administrator using that settlement documentation.
A client's vehicle was declared a total loss due to theft. Which document is typically NOT required in a GAP claim submission?
Answer: The vehicle's original window sticker (Monroney label) from the time of purchase
While purchase documentation may sometimes be requested, the Monroney sticker is generally not a standard required document for a GAP theft claim.
A client is concerned that their GAP coverage may not pay the full loan balance. Which common GAP limitation should an advisor proactively disclose?
Answer: GAP typically excludes delinquent payments, late fees, and extended warranties rolled into the loan
GAP policies commonly exclude past-due payments, penalties, and add-on product costs that were rolled into the loan balance from the covered payoff amount.