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3427. Gap insurance; cancellation, renewal and other provisions (a) Definitions. As used in this section: (1) Covered policy” means, for purposes of this section, a policy or contract of gap insurance,

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What is section 3427 gap insurance?

Section 3427 gap insurance is a type of insurance coverage that helps cover the difference between the amount owed on a vehicle and the actual cash value if the vehicle is deemed a total loss.

Who is required to file section 3427 gap insurance?

Lenders and lessors are typically required to offer section 3427 gap insurance to borrowers or lessees.

How to fill out section 3427 gap insurance?

Section 3427 gap insurance can be filled out by providing information about the vehicle, the loan or lease agreement, and the insurance coverage being offered.

What is the purpose of section 3427 gap insurance?

The purpose of section 3427 gap insurance is to protect borrowers or lessees from having to pay the difference between the actual cash value of a vehicle and the amount owed on a loan or lease in the event of a total loss.

What information must be reported on section 3427 gap insurance?

Information such as the make and model of the vehicle, the loan or lease agreement details, and the coverage limits must be reported on section 3427 gap insurance forms.

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