The California Legislature enacted AB 2782, which purports to align the definition of “Credit Insurance Agent” in the Insurance Code with the definition used in the National Association of Insurance Companies (NAIC) Producer Licensing Model Act (PLMA). The PLMA definition permits these credit insurance agents to transact Guaranteed Automobile Protection (GAP) insurance — insurance which protects a car buyer/lessee with a promise to indemnify the purchaser or lessee for any of the difference between the actual cash value of the insured’s vehicle at the time of an unrecovered theft or total loss and the amount owed on the vehicle pursuant to the terms of a loan, lease agreement, or installment sales contract used to purchase or lease the vehicle. A copy of the chaptered bill can be found here.