Black
If I purchase a GMPP is
it safe in this environment?
The
number one question we currently are being asked is “What happens if GM
goes Bankrupt?”
a.
GM Protection Plan is NOT owned by GM, but instead is 100% owned by
GMAC Insurance.
i.
GMAC Insurance is a STAND ALONE Corporation that has its own separate
Board of Directors and separate Cash Accounts.
ii.
GMAC Insurance has an EXCELLENT rating with A. M. Best Rating Service
(Agency that rates insurance companies).
iii.
GMAC Insurance as all insurance companies have strict federal rules to
hold significant amounts in escrow to pay your future claims.
b.
GM will only own 10% of GMAC/GMAC Insurance as part of the
i.
This results in very small limits of GMAC and GMAC Insurance exposure
to GM’s problems.
ii.
This resulted in GMAC Bank becoming a FDIC Insured Bank (GMAC Bank was recently
renamed Ally Bank).
c.
GMAC Insurance who owns 100% of the GM Protection Plan is a very
profitable stand alone Corporation.
i.
GMAC Insurance sells the GM Protection Plan – Major Guard
ii.
GMAC Insurance sells GMAC Insurance for Home, Boat, Motorcycle, and Car
Physical Damage Insurance at very competitive prices.
a.
GMAC Insurance is currently hiring and has over 260 available position
offered online at www.gmacinsurance.com
b.
GMAC is now US Government backed and funded by the US Treasury. In this
environment (right or wrong) with the US Government backing the company, it is
safe.
The
chance of your vehicle breaking down unprotected without a GM Protection Plan
is much greater than GMAC Insurance going away (especially after all the above
changes were implemented to further protect your investment).
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