Under AB 2311 effective 1.1.23, rules state that the GAP waiver cannot exceed more than 4% of the amount the buyer finances under the Conditional sales contracts (CSC). Question, what would be considered the amount finances? Our Insurance provider is stating the MSRP or value, the dealers are stating the Sales price, while our Loan systems are using the Amount Financed. Has anyone had this question come up? What amount should be used to calculate the GAP waiver?

The explanation of the "amount financed" is in 2982(a)(8), which did not change other than to include the GAP waiver in the calculation.

https://leginfo.legislature.ca.gov/..._id=202120220AB2311&showamends=false