GAP Claims Process & Documentation 3

Question 1

What document must the claimant provide to show the exact loan payoff amount owed to the lender at the time of the total loss?

Accepted Answer

A 10-day payoff quote from the lender dated near the loss date

Answer

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.

Question 2

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?

Accepted Answer

Documentation of the deficiency balance confirmation from the lienholder

Answer

The GAP administrator needs the lienholder's deficiency balance confirmation to verify what remains owed after the primary settlement was applied.

Question 3

Which document is used to verify the vehicle's mileage at the time of loss, which can affect depreciation calculations in the GAP claim?

Accepted Answer

The primary insurer's total loss inspection or appraisal report

Answer

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.

Question 4

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?

Accepted Answer

The claim may be denied for failure to comply with the filing deadline

Answer

GAP agreements include filing deadlines, and failure to submit within the required timeframe can result in claim denial for non-compliance with contract terms.

Question 5

What is the role of the 'certificate of total loss' issued by the primary insurer in the GAP claims process?

Accepted Answer

It officially declares the vehicle a total loss and triggers the GAP claim eligibility review

Answer

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.

(GAP) Guaranteed Asset Protection Certified Practice Test

(GAP) Guaranteed Asset Protection Certified Practice Test

GAP Claims Process & Documentation 3