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Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
AFIP CERTIFICATION EXAMINATION 2024/2025, COMPREHENSIVE
SUMMARY AND ANSWERS, PREVIOUS TEST REVISION (MAY/JUNE
2024)
Question _______ are individuals, companies or other entities identified as being owned by,
controlled by, or acting for or on behalf of, the governments of certain target countries, or
associated with international drug trafficking, terrorism or some other illegal activity.
ans: Specially Designated Nationals
Question "Preservation of Consumers' Claims and Defenses" is now known as the
______.
ans: The Holder-in-Due-Course Rule
Question (GA State Laws): Add-On Products - May a creditor sell and finance optional
add on products, such as satellite radio or an in-vehicle security, communications, and
diagnostics system ("MET Product"), and the monthly services (paid in advance) that are
related to the sale of those products? May the creditor disclose the price of those products as
part of the cash price of the motor vehicle, or must the creditor separately list the cost in the
itemization of amount financed in the retail installment sale contract? How does the state
classify such products/services: insurance or other than insurance?
ans: Yes. A creditor may sell and finance add-on products and the monthly services that may
be paid in advance, such as for satellite radio or MET Products.
Provided there is no indemnification for loss feature, the add-on device will not be considered
insurance.
Question (GA State Laws): Antitheft Products - May a creditor sell and finance optional
anti-theft products, such as a stolen vehicle recovery system or vehicle tracking devices, etch,
alarms, and other theft deterrent type devices? May the creditor disclose the price of those
products as part of the cash price of the motor vehicle, or must the creditor separately list the
cost in the itemization of amount financed in the retail installment sale contract? How does
the state classify such devices: insurance or other than insurance?
ans: Yes, a creditor may sell and finance anti-theft products. Charges for anti-theft products
that are not considered insurance may be included within the cash sale price of the vehicle.
Depending on the features, an anti-theft product may be considered insurance.
Question (GA State Laws): Are any state specific co-signer notices required?
,ans: No.
Question (GA State Laws): Are balloon payments permitted? Is there a requirement that
it be refinanced?
ans: Balloon payments are permitted. There is no requirement that a balloon payment be
refinanced.
Question (GA State Laws): Are document preparation fees permitted?
ans: Yes. However, if they are only charged in credit sales (and not in cash sales) it should be
treated as part of the finance charge and will be subject to rebate upon prepayment.
Question (GA State Laws): Are fees for providing payoff amounts to a consumer
permitted?
ans: Yes. However, if the fee is a finance charge it is subject to rebate upon prepayment.
Question (GA State Laws): Are lien filing or recording fees permitted?
ans: Yes.
Question (GA State Laws): Are refunds of optional credit insurance premiums required
upon prepayment or default and acceleration of the contract? If so, who is required to make
the refund (e.g. original creditor, holder, or insurance company)? If state law requires the
holder to provide a refund, does state law provide an applicable refund methodology (pro
rata, 78s, actuarial, e.g.)?
ans: Yes, if received by the holder, the holder must credit the amount to the final maturing
installment. No specific methodology is required, but the refund method must be set forth in
the group policy, rider, individual policy and certificate of insurance.
Question (GA State Laws): Are there any state specific application disclosures?
ans: No.
Question (GA State Laws): Are there any state specific contract disclosures?
ans: Yes. The contract must contain a specific statement in clear and conspicuous type, that
liability insurance coverage for bodily injury and property damage caused to others is not
included, if that is the case.
Question (GA State Laws): Auto Club Services - May the creditor sell and finance
optional auto club services? May the creditor disclose the price of these services as part of the
cash price of the motor vehicle, or must the creditor separately list the cost in the itemization
of amount financed in the retail installment sale contract? How does the state classify such
services: insurance, or other than insurance?
ans: Yes. The creditor may sell and finance auto club services.
If the auto club service does not fall under the automobile club services law, it may be
considered insurance. If the auto club service is considered insurance, the price of the product
should be separately disclosed in the itemization of amount financed.
If the auto club service is not considered insurance, the price of the product may be included
in the cash sale price.
,Question (GA State Laws): Can credit transactions be entered into by mail or
electronically?
ans: Yes.
Question (GA State Laws): Can the creditor finance property insurance insuring the
collateral?
ans: Yes.
Question (GA State Laws): Can the creditor offer (and finance) a gap waiver agreement
between the creditor and the consumer? Is such a gap waiver considered to be an insurance
product in this state?
ans: Yes, a GAP waiver agreement may be offered and financed. A GAP Waiver agreement
is not considered to be insurance.
Question (GA State Laws): Can the creditor require property insurance insuring the
collateral?
ans: Yes.
Question (GA State Laws): Can the creditor sell and finance gap insurance issued by a
third party? If so, would the financing of gap insurance be subject to an insurance premium
financing law?
ans: Yes, a creditor can sell and finance GAP insurance issued by a third party if the creditor
is licensed as an insurance agency or agent. The financing of three-party GAP insurance is
not subject to Georgia's insurance premium financing law.
Question (GA State Laws): Do consumers have the right to cancel any of the insurance
sold in conjunction with the credit transaction?
ans: Yes.
Question (GA State Laws): Does a state statute provide that it is a safe harbor to rely on
rules or interpretations of state law?
ans: No.
Question (GA State Laws): Does state law expressly require that the seller or the seller's
agent give the buyer a copy of the executed contract at the time the contract is executed?
ans: Yes. The selling dealer or the selling dealer's authorized agent is required by the Motor
Vehicle Sales Finance Act to give the buyer a signed retail installment contract at the time it
is executed by the buyer.
Question (GA State Laws): Does state law expressly require that the seller or the seller's
agent must sign the contract at the time the buyer signs it?
ans: Yes. The selling dealer or the selling dealer's authorized agent is required by the Motor
Vehicle Sales Finance Act to sign the retail installment contract either at the time it is
executed by the buyer, or before it is executed by the buyer.
Question (GA State Laws): Does state law impose any applicable advertising
disclosures?
ans: No.
, Question (GA State Laws): Does state law impose any limits on recoveries available in
a class action?
ans: No.
Question (GA State Laws): Does state law specify a refund method for finance charges
on precomputed transactions?
ans: Yes; The Motor Vehicle Sales Finance Act requires a refund to be calculated using the
Rule of 78s method in the case of a prepayment in full.
Question (GA State Laws): Does state law specify that certain contract provisions are
prohibited or unenforceable?
ans: Yes. Any waiver of the Motor Vehicle Sales Finance Act is unenforceable and void.
Question (GA State Laws): Does the state have any applicable foreign language
disclosures?
ans: No.
Question (GA State Laws): Does the state impose a maximum term on credit
transactions?
ans: No.
Question (GA State Laws): Does the state impose limitations on telemarketing?
ans: Yes. No person or entity shall make or cause to be made any telephone solicitation to the
telephone line of any residential subscriber in this state who has had registered to be on a "do
not call" list maintained by the Public Service Commission.
Question (GA State Laws): Does the state provide a clerical or bona fide error defense?
ans: No.
Question (GA State Laws): Extended Service Contracts and Maintenance Plans - May
the creditor sell and finance an optional extended service contract or maintenance plan? May
the creditor disclose the price of the service contract or maintenance plan as part of the cash
price of the motor vehicle, or must the creditor separately list the cost in the itemization of
amount financed in the retail installment sale contract? How does the state classify such
products: insurance or other than insurance? Are there Insurance Department form filing
requirements?
ans: Yes. The creditor can sell and finance an extended service contract or maintenance plan,
subject to certain requirements. Vehicle service contracts are not considered insurance.
Question (GA State Laws): Is credit unemployment insurance (joint or single) permitted
to be offered?
ans: Yes.
Question (GA State Laws): May a mistake be corrected to avoid civil or criminal
penalties?
ans: Yes. A mistake in the calculation of finance charges may be corrected within 10 days
after the contract is executed.
Question (GA State Laws): May attorney fees be charged upon a default?
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
AFIP CERTIFICATION EXAMINATION 2024/2025, COMPREHENSIVE
SUMMARY AND ANSWERS, PREVIOUS TEST REVISION (MAY/JUNE
2024)
Question _______ are individuals, companies or other entities identified as being owned by,
controlled by, or acting for or on behalf of, the governments of certain target countries, or
associated with international drug trafficking, terrorism or some other illegal activity.
ans: Specially Designated Nationals
Question "Preservation of Consumers' Claims and Defenses" is now known as the
______.
ans: The Holder-in-Due-Course Rule
Question (GA State Laws): Add-On Products - May a creditor sell and finance optional
add on products, such as satellite radio or an in-vehicle security, communications, and
diagnostics system ("MET Product"), and the monthly services (paid in advance) that are
related to the sale of those products? May the creditor disclose the price of those products as
part of the cash price of the motor vehicle, or must the creditor separately list the cost in the
itemization of amount financed in the retail installment sale contract? How does the state
classify such products/services: insurance or other than insurance?
ans: Yes. A creditor may sell and finance add-on products and the monthly services that may
be paid in advance, such as for satellite radio or MET Products.
Provided there is no indemnification for loss feature, the add-on device will not be considered
insurance.
Question (GA State Laws): Antitheft Products - May a creditor sell and finance optional
anti-theft products, such as a stolen vehicle recovery system or vehicle tracking devices, etch,
alarms, and other theft deterrent type devices? May the creditor disclose the price of those
products as part of the cash price of the motor vehicle, or must the creditor separately list the
cost in the itemization of amount financed in the retail installment sale contract? How does
the state classify such devices: insurance or other than insurance?
ans: Yes, a creditor may sell and finance anti-theft products. Charges for anti-theft products
that are not considered insurance may be included within the cash sale price of the vehicle.
Depending on the features, an anti-theft product may be considered insurance.
Question (GA State Laws): Are any state specific co-signer notices required?
,ans: No.
Question (GA State Laws): Are balloon payments permitted? Is there a requirement that
it be refinanced?
ans: Balloon payments are permitted. There is no requirement that a balloon payment be
refinanced.
Question (GA State Laws): Are document preparation fees permitted?
ans: Yes. However, if they are only charged in credit sales (and not in cash sales) it should be
treated as part of the finance charge and will be subject to rebate upon prepayment.
Question (GA State Laws): Are fees for providing payoff amounts to a consumer
permitted?
ans: Yes. However, if the fee is a finance charge it is subject to rebate upon prepayment.
Question (GA State Laws): Are lien filing or recording fees permitted?
ans: Yes.
Question (GA State Laws): Are refunds of optional credit insurance premiums required
upon prepayment or default and acceleration of the contract? If so, who is required to make
the refund (e.g. original creditor, holder, or insurance company)? If state law requires the
holder to provide a refund, does state law provide an applicable refund methodology (pro
rata, 78s, actuarial, e.g.)?
ans: Yes, if received by the holder, the holder must credit the amount to the final maturing
installment. No specific methodology is required, but the refund method must be set forth in
the group policy, rider, individual policy and certificate of insurance.
Question (GA State Laws): Are there any state specific application disclosures?
ans: No.
Question (GA State Laws): Are there any state specific contract disclosures?
ans: Yes. The contract must contain a specific statement in clear and conspicuous type, that
liability insurance coverage for bodily injury and property damage caused to others is not
included, if that is the case.
Question (GA State Laws): Auto Club Services - May the creditor sell and finance
optional auto club services? May the creditor disclose the price of these services as part of the
cash price of the motor vehicle, or must the creditor separately list the cost in the itemization
of amount financed in the retail installment sale contract? How does the state classify such
services: insurance, or other than insurance?
ans: Yes. The creditor may sell and finance auto club services.
If the auto club service does not fall under the automobile club services law, it may be
considered insurance. If the auto club service is considered insurance, the price of the product
should be separately disclosed in the itemization of amount financed.
If the auto club service is not considered insurance, the price of the product may be included
in the cash sale price.
,Question (GA State Laws): Can credit transactions be entered into by mail or
electronically?
ans: Yes.
Question (GA State Laws): Can the creditor finance property insurance insuring the
collateral?
ans: Yes.
Question (GA State Laws): Can the creditor offer (and finance) a gap waiver agreement
between the creditor and the consumer? Is such a gap waiver considered to be an insurance
product in this state?
ans: Yes, a GAP waiver agreement may be offered and financed. A GAP Waiver agreement
is not considered to be insurance.
Question (GA State Laws): Can the creditor require property insurance insuring the
collateral?
ans: Yes.
Question (GA State Laws): Can the creditor sell and finance gap insurance issued by a
third party? If so, would the financing of gap insurance be subject to an insurance premium
financing law?
ans: Yes, a creditor can sell and finance GAP insurance issued by a third party if the creditor
is licensed as an insurance agency or agent. The financing of three-party GAP insurance is
not subject to Georgia's insurance premium financing law.
Question (GA State Laws): Do consumers have the right to cancel any of the insurance
sold in conjunction with the credit transaction?
ans: Yes.
Question (GA State Laws): Does a state statute provide that it is a safe harbor to rely on
rules or interpretations of state law?
ans: No.
Question (GA State Laws): Does state law expressly require that the seller or the seller's
agent give the buyer a copy of the executed contract at the time the contract is executed?
ans: Yes. The selling dealer or the selling dealer's authorized agent is required by the Motor
Vehicle Sales Finance Act to give the buyer a signed retail installment contract at the time it
is executed by the buyer.
Question (GA State Laws): Does state law expressly require that the seller or the seller's
agent must sign the contract at the time the buyer signs it?
ans: Yes. The selling dealer or the selling dealer's authorized agent is required by the Motor
Vehicle Sales Finance Act to sign the retail installment contract either at the time it is
executed by the buyer, or before it is executed by the buyer.
Question (GA State Laws): Does state law impose any applicable advertising
disclosures?
ans: No.
, Question (GA State Laws): Does state law impose any limits on recoveries available in
a class action?
ans: No.
Question (GA State Laws): Does state law specify a refund method for finance charges
on precomputed transactions?
ans: Yes; The Motor Vehicle Sales Finance Act requires a refund to be calculated using the
Rule of 78s method in the case of a prepayment in full.
Question (GA State Laws): Does state law specify that certain contract provisions are
prohibited or unenforceable?
ans: Yes. Any waiver of the Motor Vehicle Sales Finance Act is unenforceable and void.
Question (GA State Laws): Does the state have any applicable foreign language
disclosures?
ans: No.
Question (GA State Laws): Does the state impose a maximum term on credit
transactions?
ans: No.
Question (GA State Laws): Does the state impose limitations on telemarketing?
ans: Yes. No person or entity shall make or cause to be made any telephone solicitation to the
telephone line of any residential subscriber in this state who has had registered to be on a "do
not call" list maintained by the Public Service Commission.
Question (GA State Laws): Does the state provide a clerical or bona fide error defense?
ans: No.
Question (GA State Laws): Extended Service Contracts and Maintenance Plans - May
the creditor sell and finance an optional extended service contract or maintenance plan? May
the creditor disclose the price of the service contract or maintenance plan as part of the cash
price of the motor vehicle, or must the creditor separately list the cost in the itemization of
amount financed in the retail installment sale contract? How does the state classify such
products: insurance or other than insurance? Are there Insurance Department form filing
requirements?
ans: Yes. The creditor can sell and finance an extended service contract or maintenance plan,
subject to certain requirements. Vehicle service contracts are not considered insurance.
Question (GA State Laws): Is credit unemployment insurance (joint or single) permitted
to be offered?
ans: Yes.
Question (GA State Laws): May a mistake be corrected to avoid civil or criminal
penalties?
ans: Yes. A mistake in the calculation of finance charges may be corrected within 10 days
after the contract is executed.
Question (GA State Laws): May attorney fees be charged upon a default?
