GAP Claims Process & Documentation 2

Question 1

When a GAP claim is filed after a total loss, which document confirms the vehicle's actual cash value (ACV) used by the primary insurer?

Accepted Answer

The primary insurer's total loss settlement letter

Answer

The primary insurer's total loss settlement letter establishes the ACV that GAP uses as the baseline for calculating the deficiency balance.

Question 2

A customer's GAP claim is delayed because the lender has not yet provided a payoff statement. Who is responsible for obtaining this document?

Accepted Answer

The claimant or their representative must request it from the lender

Answer

The claimant (or their representative) is typically responsible for requesting the payoff statement from their lender as part of the GAP claim submission.

Question 3

Which type of loss event does GAP coverage typically exclude from the claims process?

Accepted Answer

Mechanical breakdown rendering the vehicle inoperable

Answer

GAP covers total losses due to collision, theft, or other covered perils—not mechanical breakdowns, which are addressed by warranty products.

Question 4

During a GAP claim review, the administrator discovers the borrower was 60 days past due on loan payments at the time of loss. How does this most likely affect the claim?

Accepted Answer

Accrued interest from late payments may be excluded from the GAP benefit

Answer

Excessive accrued interest resulting from delinquency may be excluded from the GAP benefit, as GAP covers the standard deficiency—not penalties from borrower default.

Question 5

What is the purpose of the 'proof of primary insurance' document in a GAP claim file?

Accepted Answer

It proves the vehicle was insured at the time of loss, confirming primary coverage triggered the total loss payout

Answer

Proof of primary insurance confirms the vehicle had active coverage at the time of loss, which is required for GAP to pay the remaining deficiency.

(GAP) Guaranteed Asset Protection Certified Practice Test

(GAP) Guaranteed Asset Protection Certified Practice Test

GAP Claims Process & Documentation 2