License Requirements for Retail Vehicle Sellers Who Sell Guaranteed Asset Protection (GAP) Waivers

4315 South 2700 West, Suite 2300, Taylorsville, Utah 84129 ● Office (801) 957-9200 ● Facsimile (385) 465-6047 ● insurance.utah.gov State of Utah SPENCER J. COX Governor DEIDRE M. HENDERSON Insurance Department JONATHAN T. PIKE Insurance Commissioner BULLETIN 2025-10 To: Retail Vehicle Sellers and Individuals Selling GAP Waivers From: Jonathan T. Pike, Insurance Commissioner Date: December 1, 2025 Subject: License Requirements for Retail Vehicle Sellers Who Sell Guaranteed Asset Protection (GAP) Waivers This Bulletin serves as a reminder that a retail vehicle seller who sells a guaranteed asset protection (GAP) waiver must hold a limited line agency or individual producer license, with the GAP waiver line of authority, issued by the Insurance Department. Unless licensed, a person may not sell, offer to sell, or otherwise provide a GAP Waiver in a retail vehicle sales transaction. Utah Code § 31A-6b-201. Under this law, the license requirement applies to: (1) a retail vehicle seller that is a licensed legal entity; and (2) an individual. • If a licensed legal entity, such as a vehicle dealership, is the party that sells a vehicle, then the entity must have a limited line agency license to sell a GAP waiver. Additionally, an individual who represents the legal entity in discussing the sale of a GAP waiver with a customer must hold a limited line individual license. • If an individual, not a legal entity, is the party that sells a vehicle, then the individual is required to have a limited line individual license to sell a GAP waiver. Licenses must be renewed every two years. If a GAP waiver is sold without the appropriate license, the Department may take enforcement action against the legal entity or the individual. DATED this 1st day of December 2025. _________________________________ Jonathan T. Pike Insurance Commissioner