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 | | Debt Cancellation and Suspension
OwnerGUARD’s debt cancellation and suspension products provide for the cancellation or suspension of all or part of the consumer’s obligation to make loan payments on the vehicle upon the occurrence of certain events. |
OwnerGUARD’s unique four-tiered approach includes the following products:
- Guaranteed Asset Protection – GAP
In the event of a total loss of the vehicle, the lender agrees to cancel all sums that represent the difference between the actual cash value of the vehicle and the outstanding balance under the provisions of the financial agreement. The amount cancelled shall not exceed $50,000 in total. All primary insurance deductibles up to $1,000 are covered unless limited by state law. - Protection Plus Option – GAP Plus
In the event of a total loss of the vehicle, this purchase/finance option provides an allowance (or credit) toward the down payment of a replacement vehicle in an amount equal to the lesser of the actual cash value of the vehicle as of the date of loss or $1,000 unless limited by state law. - Involuntary Unemployment Protection
In the event of involuntary unemployment during the first 60 months of the financial agreement term, the lender agrees to cancel the scheduled financial agreement installment payments (principle and interest) for the protection period selected up to a maximum of 12 months. - Accidental Death Protection
Subject to certain terms and conditions, in the event of an accidental loss of life during the first 60 months of the financial agreement term, the lender agrees to cancel the financial agreement's outstanding balance as of the date of accidental loss of life, not to exceed $50,000.00.
Product Design Flexibility
Our Debt Cancellation and Suspension Products are designed for both closed-end and open-end indebtedness. “Life events” can be offered separately or combined into protection packages. Unemployment and accidental death protection can even be combined with GAP in a single document.
Because these products are not subject to individual state insurance regulation, lenders can easily design one product to be marketed in all states, at one national rate, with simplified, uniform disclosures. In fact, debt cancellation and debt suspension products can be offered as an alternative to traditional credit insurance programs with significant competitive advantages.
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