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Bill

A 3706

Authorizes service charges for gap waivers

2025 Regular Session Introduced by David Weprin

Authorizes service charges for gap waivers, affecting borrowers, lenders, and insurers by adding costs and requiring disclosures.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · A 3706

Summary of Assembly Bill A 3706 (New York)

Overview

  • Bill number: A 3706
  • Title: Authorizes service charges for gap waivers
  • Sponsor: David Weprin (primary)
  • Status: Referred to the Assembly Committee on Insurance
  • Introduced: January 30, 2025
  • Companions/Related: A 7025 (prior-session); S 5312 (companion in the Senate)

Purpose and Intent

The bill’s stated purpose is to authorize the collection of service charges in connection with gap waivers. Gap waivers are typically optional coverage tied to auto or consumer financing that helps cover the difference between the loan balance and the insured value of a financed asset in the event of a total loss. By authorizing service charges, the bill would permit providers offering gap waivers to assess additional charges related to delivering or administering that coverage.

Key Provisions (high-level)

  • Authorization of service charges: The core provision would allow service charges to be charged in relation to gap waiver products. The exact scope (which entities, what kinds of charges, and in what circumstances) would be defined in the bill text.
  • Regulatory framework: As the measure is being considered by the Insurance Committee, it would presumably fall under insurance regulation and oversight, including applicable consumer protection rules and reporting requirements.
  • Relation to existing programs: The bill has a predecessor in A 7025 and a Senate companion (S 5312), indicating alignment with prior or concurrently considered legislation on gap waivers and related charges.

Affected Parties

  • Consumers/Policyholders: Individuals purchasing gap waiver coverage may be impacted by the ability of providers to levy service charges.
  • Lenders and Insurers: Entities that issue gap waiver products or package them with financing could assess or collect service charges if the bill becomes law.
  • Regulators: The New York State Department of Financial Services (or the relevant Insurance Department) would oversee compliance, disclosures, and consumer protections related to these charges.

Procedural and Timeline Aspects

  • Current stage: Refer to Insurance Committee in the Assembly. No further actions or amendments are listed in the provided materials.
  • Next steps: Monitor for committee hearings, potential amendments, and floor votes. Check for fiscal notes, companion actions in the Senate (S 5312), and any updates on A 7025.

Potential Impacts and Considerations

  • Could introduce new or higher costs for consumers with gap waivers.
  • Might create clearer standards for when and how service charges can be imposed.
  • Regulatory actions would be needed to ensure transparency and fair practice in disclosures and billing.

For readers tracking progress, keep an eye on updates from the Assembly Insurance Committee and any Senate companion developments (S 5312).

Compiled from official sources — confirm details with the bill’s official record.

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