AFIP Certification questions with verfied
answers
_______ 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
"Preservation of Consumers' Claims and Defenses" is now known as the
______. Ans✓✓✓ The Holder-in-Due-Course Rule
(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.
,(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.
(GA State Laws): Are any state specific co-signer notices required?
Ans✓✓✓ No.
(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.
(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.
,(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.
(GA State Laws): Are lien filing or recording fees permitted? Ans✓✓✓
Yes.
(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.
(GA State Laws): Are there any state specific application disclosures?
Ans✓✓✓ No.
(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.
, (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.
(GA State Laws): Can credit transactions be entered into by mail or
electronically? Ans✓✓✓ Yes.
(GA State Laws): Can the creditor finance property insurance insuring
the collateral? Ans✓✓✓ Yes.
(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✓✓✓
answers
_______ 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
"Preservation of Consumers' Claims and Defenses" is now known as the
______. Ans✓✓✓ The Holder-in-Due-Course Rule
(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.
,(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.
(GA State Laws): Are any state specific co-signer notices required?
Ans✓✓✓ No.
(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.
(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.
,(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.
(GA State Laws): Are lien filing or recording fees permitted? Ans✓✓✓
Yes.
(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.
(GA State Laws): Are there any state specific application disclosures?
Ans✓✓✓ No.
(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.
, (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.
(GA State Laws): Can credit transactions be entered into by mail or
electronically? Ans✓✓✓ Yes.
(GA State Laws): Can the creditor finance property insurance insuring
the collateral? Ans✓✓✓ Yes.
(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✓✓✓
