GAP (Guaranteed Automobile Protection) Insurance
NOTICE: The information below was obtained directly from Florida Statutes and the Office of Insurance Regulation. Links are provided so you may access the statute.
- Since October 1, 2012, all types of credit insurance (e.g., credit life, credit disability, guaranteed automobile protection (GAP)) sales requires a Credit Insurance License.
- Dealers who sell GAP insurance must be licensed.
- Owners and principals (officers, directors, members, partners) need to be licensed; employees do not.
- Owners and principals must be fingerprinted.
- No course or test is required.
- The Credit Insurance License that you must hold is the 2-29. You apply for this license by clicking here.
If You Sell GAP Insurance, You Must Be Licensed
S. Allen Monello, D.P.A.
Automotive Industry Center for Excellence, LLC
Remember the days when GAP wasn’t considered insurance and you were able to sell it without a license? Well, that ended on October 1, 2012 when a law took effect that combined several types of “credit” insurance products and added guaranteed automobile protection (GAP), under one license – Credit Insurance. To access Section 626.321, Florida Statutes, click here.
If you were previously licensed to sell credit life and/or credit disability insurance, you are authorized to sell GAP. But if you never sold credit life or credit disability insurance but you have sold (and continue to sell) GAP, you must be licensed by the Department of Financial Services as a Credit Insurance Agent. However, only the individual (sole proprietor) or entity (Corporation, LLC, LLP, or Partnership) whose tax identification number is used in receiving the commission from the sale of the insurance must be licensed as the “agent” of the insurer. All owners (individuals if a sole proprietorship or officers, directors, partners or members if an entity) of your dealership must be fingerprinted. If you have more than one dealership you must obtain a branch license for each location. Salespeople or other staff do not have to be individually licensed to sell GAP. A licensed and appointed entity is directly responsible and accountable for the acts of the licensee’s employees.
The license you must obtain for all types of credit insurance is Type 2-29. You may apply online for this license by clicking here. To reach the authorized vendor who provides electronic fingerprinting services click here. There are no pre-licensing education and testing requirements for this license. Agent licenses are “perpetual” meaning they don’t have to be renewed, as long as your appointment by a licensed insurance company remains active.
The fees (all fees are nonrefundable) to obtain a credit insurance license can be viewed by clicking here.
To apply for this license online you must create an account within “MyProfile” by clicking here. For general inquiries about licensing you may email your questions to: AgentLicensing@MyFloridaCFO.com.