Alabama § 8-37-4 - Reimbursements; Coverage; Effect of Cancellation or Termination.
Full text of Alabama Code of Alabama § 8-37-4 — Reimbursements; Coverage; Effect of Cancellation or Termination., with citation guidance and answers to common questions.
§ 8-37-4. Reimbursements; Coverage; Effect of Cancellation or Termination.
(a) A contractual liability or other insurance policy insuring a GAP waiver shall state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the GAP waiver issued by the creditor and purchased or held by the borrower.
(b) Coverage under a contractual liability or other insurance policy insuring a GAP waiver shall also cover any subsequent assignee upon the assignment, sale, or transfer of the finance agreement.
(c) Coverage under a contractual liability or other insurance policy insuring a GAP waiver shall remain in effect unless cancelled or terminated in compliance with applicable insurance laws of this state.
(d) The cancellation or termination of a contractual liability or other insurance policy shall not reduce the insurer’s responsibility for GAP waivers issued by the creditor prior to the date of cancellation or termination and for which premium has been received by the insurer.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 8-37-4
What does Code of Alabama § 8-37-4 cover?
Section 8-37-4 ("Reimbursements; Coverage; Effect of Cancellation or Termination.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 8-37-4?
A common citation format is "Code of Alabama § 8-37-4" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 8-37-4 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.