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Gap Insurance

Gap Insurance Maintenance​

Purpose To create a rate schedule for selling Gap insurance on sales contracts. The system will automatically calculate the proper rate based on the maximum amount financed, maximum term, cost, and price.

From the menu select Sales Management, Codes Maintenance, Gap Insurance.

  • Gap Insurance Code – Enter a Gap Insurance Code. You can press F6 or click the List F6 link in the Command Panel to see a list of all Gap Insurance Codes.
  • Description – Enter a description for the Gap insurance code.
  • F&I Calc Program – Enter your calculation program, otherwise leave this field blank.
  • Comments – Enter comments for this Gap Insurance code. This is a free form text field.
-- Rate Schedule Grid –-​
  • Max Amount Financed – Enter the amounts financed from smallest to largest.
  • Max Term – Enter terms, in months, from smallest to largest.
  • Cost – See paragraph below.
  • Price – See paragraph below.

In selecting the Cost and Price we move down the list until the amount financed is less than or equal to the maximum amount financed. If there are multiple rows that have the same maximum amount financed, we scroll through these and select the one whose maximum term is greater than or equal to the loan term, or the last one of the group. If none of the rows has a maximum amount financed that is greater than or equal to the amount financed, then this insurance product is inappropriate for this loan and a warning will be raised. If none of the maximum terms is greater than the term of the loan, then the last row (for this maximum amount financed) is selected.