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AFIP Certification Exam Questions
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_______ are individuals, companies or other entities identified as being
owned by, controlled by, or acting for or on behalf of, the governments of
certain target countries, or associated with international drug trafficking,
terrorism or some other illegal activity. - ANS ✔Specially Designated
Nationals
"Preservation of Consumers' Claims and Defences" is now known as the
______. - ANS ✔The Holder-in-Due-Course Rule
(GA State Laws): Add-On Products - May a creditor sell and finance
optional add on products, such as satellite radio or an in-vehicle security,
communications, and diagnostics system ("MET Product"), and the
monthly services (paid in advance) that are related to the sale of those
products? May the creditor disclose the price of those products as part of
the cash price of the motor vehicle, or must the creditor separately list the
cost in the itemization of amount financed in the retail instalment sale
contract? How does the state classify such products/services: insurance or
other than insurance? - ANS ✔Yes. A creditor may sell and finance add-on
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products and the monthly services that may be paid in advance, such as for
satellite radio or MET Products.
Provided there is no indemnification for loss feature, the add-on device will
not be considered insurance.
(GA State Laws): Antitheft Products - May a creditor sell and finance
optional anti-theft products, such as a stolen vehicle recovery system or
vehicle tracking devices, etch, alarms, and other theft deterrent type
devices? May the creditor disclose the price of those products as part of the
cash price of the motor vehicle, or must the creditor separately list the cost
in the itemization of amount financed in the retail instalment sale contract?
How does the state classify such devices: insurance or other than
insurance? - ANS ✔Yes, a creditor may sell and finance anti-theft products.
Charges for anti-theft products that are not considered insurance may be
included within the cash sale price of the vehicle. Depending on the features, an
anti-theft product may be considered insurance.
(GA State Laws): Are any state specific co-signer notices required? - ANS
✔No.
(GA State Laws): Are balloon payments permitted? Is there a requirement
that it be refinanced? - ANS ✔Balloon payments are permitted. There is no
requirement that a balloon payment be refinanced.
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(GA State Laws): Are document preparation fees permitted? - ANS ✔Yes.
However, if they are only charged in credit sales (and not in cash sales) it
should be treated as part of the finance charge and will be subject to rebate upon
prepayment.
(GA State Laws): Are fees for providing payoff amounts to a consumer
permitted? - ANS ✔Yes. However, if the fee is a finance charge it is subject
to rebate upon prepayment.
(GA State Laws): Are lien filing or recording fees permitted? - ANS ✔Yes.
(GA State Laws): Are refunds of optional credit insurance premiums
required upon prepayment or default and acceleration of the contract? If
so, who is required to make the refund (e.g. original creditor, holder, or
insurance company)? If state law requires the holder to provide a refund,
does state law provide an applicable refund methodology (pro rata, 78s,
actuarial, e.g.)? - ANS ✔Yes, if received by the holder, the holder must credit
the amount to the final maturing instalment. No specific methodology is
required, but the refund method must be set forth in the group policy, rider,
individual policy and certificate of insurance.
(GA State Laws): Are there any state specific application disclosures? -
ANS ✔No.
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(GA State Laws): Are there any state specific contract disclosures? - ANS
✔Yes. The contract must contain a specific statement in clear and conspicuous
type, that liability insurance coverage for bodily injury and property damage
caused to others is not included, if that is the case.
(GA State Laws): Auto Club Services - May the creditor sell and finance
optional auto club services? May the creditor disclose the price of these
services as part of the cash price of the motor vehicle, or must the creditor
separately list the cost in the itemization of amount financed in the retail
instalment sale contract? How does the state classify such services:
insurance, or other than insurance? - ANS ✔Yes. The creditor may sell and
finance auto club services.
If the auto club service does not fall under the automobile club services law,
it may be considered insurance. If the auto club service is considered
insurance, the price of the product should be separately disclosed in the
itemization of amount financed.
If the auto club service is not considered insurance, the price of the product
may be included in the cash sale price.
(GA State Laws): Can credit transactions be entered into by mail or
electronically? - ANS ✔Yes.
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