DEFINITIONS For the purpose of the Deficiency Waiver Addendum (Addendum) the following terms shall mean:
Customer means the purchaser of the Vehicle, as listed in the application section of this Addendum. Vehicle means the four-wheeled private passenger vehicle, van, pickup or truck not to exceed 10,000 pounds GVW, as listed in the application section of this Addendum. Date of Loss means the date on which the actual physical loss or damage occurred to the Vehicle. If such date is indeterminable, the Date of Loss shall be either the date established by the primary insurance carrier or the date the occurrence was reported to the Police, whichever is the earlier. Actual Cash Value means the retail value of the Vehicle on the Date of Loss prior to its physical damage or theft, as determined by the Customer's primary insurance company net of the Customer's primary deductible, not to exceed $500. If no primary insurance company exists or the primary insurance company has been declared insolvent, the retail value will be determined using the N.A.D.A. Official Used Car Guide based on the best information available on the Vehicle's options and conditions. Total Loss means a total or constructive total loss as defined by the individual Customer's primary automobile physical damage carrier. If no primary physical damage carrier exists, then a Total Loss shall mean when the repair cost exceeds the Actual Cash Value or, in the event of a theft, when the Vehicle has not been recovered after a minimum period of 30 days from the date of the original police theft report. Unpaid Net Balance means the amount owed by the Customer to clear the outstanding Financing Agreement account balance as of Date of Loss. This amount shall not include any and all unearned and/or future finance or rental charges, loan or lease charges, late charges, delinquent payments, uncollected service charges, refundable prepaid taxes and fees, disposition fees, termination fees, penalty fees or any proceeds which may be recovered by canceling any insurance coverage, service contracts and / or warranties, credit life, accident and health insurance, or, other cancelable items.
TERMS AND CONDITIONS
No coverage is provided for any Financing Agreement when the original term exceeds 84 months.
No coverage is provided for that unpaid portion of the Unpaid Net Balance that results from the amount financed / lease cap cost exceeding 125% of the Manufacturer's Suggested Retail Price (MSRP) for New Vehicles or 125% of NADA Official Used Car Guide's "Retail" value for Used Vehicles, at the inception date of the Financing Agreement. These Financing Agreements will not be disqualified from coverage; however, the Unpaid Net Balance will be determined based on this maximum limit.
Primary Insurance: Should the Customer not have collectible physical damage insurance on the Date of Loss, it is the responsibility of the Customer to advise the Administrator in writing within sixty (60) days when the Total Loss is discovered and the Administrator will calculate the Actual Cash Value of the Vehicle immediately prior to the Total Loss.
The Deficiency Waiver Addendum is transferable only if there is a transfer of equity. If the Customer refinances the original Financing Agreement, this Addendum will be deemed cancelled. This Addendum can not be transferred to another Financing Agreement or Customer.
The Deficiency Waiver Addendum is cancelable upon written notice to the Administrator subject to the effective date of the cancellation not being prior to the date the written notice is received by the Administrator. A cancellation requested within thirty (30) days of the purchase is eligible for a full refund. After the thirty (30) days, refunds will be calculated by the Rule of 78’s less a $50.00 cancellation fee, unless otherwise required by state statute or the Dealer / Assignee. The lien holder will be listed as loss payee on all refunds and sole payee on any refunds due to repossession.
This Addendum shall be void if any material fact(s) have been concealed or misrepresented, or in the case of fraud.
No coverage is provided for any Vehicle unless this Addendum has been reported to the Administrator by the Dealer.
EXCLUSIONS This policy does not apply to loss or damage:
Due to wear and tear, freezing, mechanical or electrical breakdown or failure.
To emergency vehicles, taxicabs, liveries and buses, conversion vans except those converted by the manufacturer or a conversion approved by the manufacturer by an outside facility, and vehicles used for any commercial purposes.
To other than the standard or optional equipment available from the manufacturer of the covered collateral.
Resulting directly or indirectly from forgery or any dishonest, fraudulent or criminal act, or due to conversion, embezzlement or secretion by any person in lawful possession of the Vehicle, or due to the legal confiscation of the Vehicle by a public official.
Resulting directly or indirectly from forgery or any fraudulent act by the Customer.
Caused intentionally by the Customer.
To equipment designed for recording, reproduction, receiving or transmitting of sound or signals unless the device is permanently installed in the covered collateral at the time the covered collateral is purchased.
To Financing Agreements made to the automotive dealer, or his employees, whether or not the covered collateral is held for resale.
Due to war, whether or not declared, invasion, civil war, insurrection, rebellion or revolution.
IN THE EVENT OF A CLAIM, and before any coverage under this Addendum can be processed, the Customer must provide the following documentation to the Administrator within 90 days of the Date of Loss. Failure to provide this documentation within 90 days of the Date of Loss will VOID this Addendum.
Copy of Financing Agreement and Copy of the signed GAP Addendum.
Copy of Customer Payment or Account History including remaining principal balance at date of loss.
Copy of Primary Insurance Settlement Check.
Copy of Police Report.
Copy of Vehicle Valuation prepared by Primary Insurer.
Copy of Certificate of Primary Insurance.
If applicable, Copy of Checks for Cancellation of Service Contract, Credit Life / Accident and Health Insurance, and any other cancelable items.
PLEASE MAKE SURE all documents are LEGIBLE, otherwise coverage will be suspended until legible copies are submitted.
Administrator: Comprehensive Auto Resources Company, Inc. P.O. Box 1268 Exton, PA 19341 (877) 902-8790
GAP WAIVER IND