Bill Text: MI SB0034 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Consumer protection; retail installment sales; guaranteed asset protection waivers; include waiver agreements conditioned on death or disability of borrower. Amends sec. 3 of 2009 PA 229 (MCL 492.23).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-16 - Referred To Committee On Regulatory Reform [SB0034 Detail]
Download: Michigan-2013-SB0034-Introduced.html
SENATE BILL No. 34
January 16, 2013, Introduced by Senator SCHUITMAKER and referred to the Committee on Regulatory Reform.
A bill to amend 2009 PA 229, entitled
"Guaranteed asset protection waiver act,"
by amending section 3 (MCL 492.23).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Administrator" means a person, other than a creditor or
insurer, that performs administrative or operational functions in
connection with a guaranteed asset protection waiver program.
(b) "Borrower" means a person that purchases, agrees to
purchase, leases, or agrees to lease a motor vehicle. The term
includes, but is not limited to, an installment buyer or a retail
buyer.
(c) "Commissioner" means the commissioner of the office of
financial
and insurance regulation in the department of energy,
labor,
and economic growth.licensing
and regulatory affairs.
(d) "Creditor" means a person that extends credit to a
borrower in connection with the purchase of a motor vehicle; an
assignee of that person; a lessor of a motor vehicle; or an
assignee of that lessor. The term includes, but is not limited to,
any of the following:
(i) An installment seller that extends credit to an installment
buyer and any assignee to which that credit obligation is payable.
(ii) An installment seller that leases a motor vehicle to an
installment buyer and any assignee to which the lease payments are
payable.
(iii) A sales finance company that extends credit to an
installment buyer and any assignee to which that credit obligation
is payable.
(iv) A retail seller that extends credit to a retail buyer and
any assignee to which that credit obligation is payable.
(v) A retail seller that leases a motor vehicle to a retail
buyer and any assignee to which the lease payments are payable.
(e) "Finance agreement" means a loan, lease, or installment
sale agreement for a motor vehicle. The term includes, but is not
limited to, an installment sale contract, a retail installment
contract, or a retail charge agreement.
(f) "Free look period" means the period of time during which a
borrower may cancel a guaranteed asset protection waiver without
penalty, fees, or costs to the borrower. A free look period must
begin on the effective date of the guaranteed asset protection
waiver, and the term of a free look period must be at least 30
days.
(g) "Guaranteed asset protection waiver" means a contractual
agreement in which a creditor agrees for a separate charge to
cancel or waive all or part of amounts due on a borrower's finance
agreement in the event of a total physical damage loss or
unrecovered theft of a motor vehicle or the death or disability of
the borrower.
(h) "Installment buyer" means that term as defined in section
2 of the motor vehicle sales finance act, MCL 492.102.
(i) "Installment sale contract" means that term as defined in
section 2 of the motor vehicle sales finance act, MCL 492.102.
(j) "Installment seller" means that term as defined in section
2 of the motor vehicle sales finance act, MCL 492.102.
(k) "Insurer" means an authorized insurer as defined in
section 108 of the insurance code of 1956, 1956 PA 218, MCL
500.108.
(l) "Motor vehicle" means a self-propelled or towed device that
transports people or property for personal or commercial use. The
term includes, but is not limited to, an automobile, truck,
motorcycle, recreational vehicle, all-terrain vehicle, camper,
boat, or personal watercraft or a motorcycle, boat, camper, or
personal watercraft trailer. The term does not include a device
that moves on or is guided by a track or travels through the air.
(m) "Motor vehicle sales finance act" means the motor vehicle
sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 to 492.141.
(n) "Person" means an individual, limited liability company,
partnership, association, corporation, governmental entity, or any
other legal entity.
(o) "Retail buyer" means that term as defined in section 2 of
the retail installment sales act, MCL 445.852.
(p) "Retail charge agreement" means that term as defined in
section 2 of the retail installment sales act, MCL 445.852.
(q) "Retail installment contract" means that term as defined
in section 2 of the retail installment sales act, MCL 445.852.
(r) "Retail installment sales act" means the retail
installment sales act, 1966 PA 224, MCL 445.851 to 445.873.
(s) "Retail seller" means that term as defined in section 2 of
the retail installment sales act, MCL 445.852.
(t) "Sales finance company" means that term as defined in
section 2 of the motor vehicle sales finance act, MCL 492.102.
