COBI 2015 - GAP Waiver Program

Overview
Issues
Financials

Sources Uses

FY 2016 Appropriation

The GAP Waiver program was established to ensure all aspects of insurance in relation to guaranteed asset protection are up to industry standards. The GAP waiver is a contract in which a creditor agrees to waive a borrower's obligations under a finance agreement in the event of total loss on a vehicle. The GAP Waiver Restricted Account funds this program to ensure compliance with Utah insurance code, UCA 31A-6b.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $95,000 from all sources for GAP Waiver Program. This is a 72.7 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Appropriation Adjustments

The following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Reallocate Insurance Department Account Resources to Other Accounts$40,000$0

OngoingOne-TimeFinancing Source

$40,000$0GFR - Guaranteed Asset Protection Waiver

Reallocate $80,000 in Insurance Department Restricted Fund to the Electronic Commerce Program, $35,800 to the Guaranteed Asset Protection Program and $35,800 to the Relative Value Study Program.

Intent Language

HB0003: Item 71

Under Section 63J-1-603 of the Utah Code the Legislature intends that appropriations for Insurance Department Administration not lapse at the close of Fiscal Year 2015. Any appropriations related to the transfer of federal funds of $374,000 from the closing of the Comprehensive Health Insurance Pool program and $100,000 for general program revenues shall not lapse at the close of FY 2015. Transferred funds from the Comprehensive Health Insurance Pool program shall be utilized for any late claims from former program participants, audit costs, legal fees related to the program and health outreach activities. Any other funds are for replacement of computers, printers and copy machines, and scanners for electronic storage of documents.

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Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
GFR - Guaranteed Asset Protection Waiver	89,000	89,000	89,000	89,000	89,100	0	89,100	40,000	129,100
Closing Nonlapsing	0	0	0	0	0	0	0	(34,100)	(34,100)
Lapsing Balance	(84,600)	(86,200)	(87,300)	(68,900)	0	(34,100)	(34,100)	34,100	0
Total	$4,400	$2,800	$1,700	$20,100	$89,100	($34,100)	$55,000	$40,000	$95,000

Show Table | Show Additional Information

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	4,400	100	300	200	0	15,000	15,000	40,000	55,000
Current Expense	0	0	0	7,200	84,000	(69,000)	15,000	0	15,000
DP Current Expense	0	2,700	1,400	12,700	5,100	19,900	25,000	0	25,000
Total	$4,400	$2,800	$1,700	$20,100	$89,100	($34,100)	$55,000	$40,000	$95,000

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.