(1) A GAP agreement shall not be sold to a consumer if:(a) The consumer is ineligible for a GAP agreement;(b) The finance agreement terms preclude coverage under a GAP agreement;(c) The motor vehicle used as collateral for the finance agreement is ineligible for coverage under a GAP agreement;(d) The GAP agreement limits coverage to a maximum loan-to-value ratio and the terms of the finance agreement exceed the maximum loan-to-value ratio stated in the GAP agreement;(e) The maximum loan-to-value ratio in the GAP agreement exceeds one hundred fifty percent; or(f) The transaction would be unconscionable as described in section 5-4-106, 5-5-109, or 5-6-112.Added by 2023 Ch. 425,§ 3, eff. 1/1/2024.2023 Ch. 425, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
Colorado Legal Code