Text: SSB01182 Text: SSB01184 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 522A.1 PURPOSE. 1 2 The purpose of this chapter is to provide for the limited 1 3 licensing of rental companies when a motor vehicle rental 1 4 company sells travel or automobile-related insurance products 1 5 or coverage in connection with and incidental to the rental of 1 6 vehicles. 1 7 Sec. 2. NEW SECTION. 522A.2 DEFINITIONS. 1 8 As used in this chapter, unless the context otherwise 1 9 requires: 1 10 1. "Commissioner" means the commissioner of insurance 1 11 appointed pursuant to section 505.2. 1 12 2. "Limited licensee" means a person at least eighteen 1 13 years of age or an entity authorized to sell certain insurance 1 14 coverages relating to the rental of vehicles. 1 15 3. "Rental agreement" means any written agreement setting 1 16 forth the terms and conditions governing the use of a vehicle 1 17 provided by a rental company for rental. 1 18 4. "Rental company" means any person or entity in the 1 19 business of primarily providing vehicles intended for the 1 20 private transportation of passengers to the public under a 1 21 rental agreement for a period not to exceed ninety days. 1 22 5. "Rental period" means the term of the rental agreement. 1 23 6. "Renter" means any person obtaining the use of a 1 24 vehicle from a rental company under the terms of a rental 1 25 agreement for a period not to exceed ninety days. 1 26 7. "Vehicle" means a motor vehicle under section 321.1 1 27 used for the private transportation of passengers, including 1 28 passenger vans, minivans, and sport utility vehicles, or used 1 29 for the transportation of cargo with a gross vehicle weight of 1 30 less than twenty-six thousand one pounds and not requiring the 1 31 operator to possess a commercial driver's license, including 1 32 cargo vans, pickup trucks, and trucks. 1 33 Sec. 3. NEW SECTION. 522A.3 LIMITED LICENSES. 1 34 1. Notwithstanding the provisions of chapter 522, the 1 35 commissioner may issue a limited license to a rental company 2 1 that has complied with the requirements of this chapter. The 2 2 limited license shall authorize the limited licensee to offer 2 3 or sell insurance with the rental of vehicles. 2 4 2. As a prerequisite for issuance of a limited license 2 5 under this section, a written application for a limited 2 6 license, which is signed by an officer of the applicant, shall 2 7 be filed with the commissioner. The application shall be in a 2 8 form and contain information prescribed by the commissioner. 2 9 The application shall include a list of all rental locations 2 10 where the rental company intends to conduct business. An 2 11 updated list shall be provided to the commissioner by January 2 12 1 of each year. 2 13 3. If a provision of this section is violated by a limited 2 14 licensee, the commissioner may, after notice and a hearing, 2 15 revoke or suspend a limited license issued under this section, 2 16 or impose any other penalties, including suspending permission 2 17 for the transaction of insurance offers or sales at specific 2 18 rental locations where violations of this section have 2 19 occurred, as the commissioner deems to be necessary or 2 20 convenient to carry out the purposes of this section. 2 21 4. A rental company licensed pursuant to this section may 2 22 offer or sell insurance issued by an insurance carrier 2 23 authorized to do business in this state and only in connection 2 24 with and incidental to the rental of a vehicle. A renter 2 25 shall not be required to purchase coverage in order to rent a 2 26 vehicle. The type of insurance offered or sold by a limited 2 27 licensee, whether at the rental office or by preselection of 2 28 coverage in a master, corporate, group rental, or individual 2 29 agreement, may be in any of the following general categories: 2 30 a. Personal accident insurance covering the risks of 2 31 travel, including, but not limited to, accident and health 2 32 insurance that provides coverage, as applicable, to a renter 2 33 and other rental vehicle occupants for accidental death or 2 34 dismemberment and reimbursement for medical expenses resulting 2 35 from an accident that occurs during the rental period. 3 1 b. Liability insurance that provides coverage, as 3 2 applicable, to a renter and other authorized drivers of rental 3 3 vehicles for liability arising from the operation of the 3 4 rental vehicle. 3 5 c. Personal effects insurance that provides coverage, as 3 6 applicable, to a renter and other vehicle occupants for the 3 7 loss of, or damage to, personal effects that occurs during the 3 8 rental period. 3 9 d. Roadside assistance and emergency sickness protection 3 10 programs applicable during the rental period. 3 11 e. Any other travel or automobile-related coverage which 3 12 is connected with and incidental to the rental of a vehicle, 3 13 upon prior approval of the commissioner. 3 14 5. Insurance shall only be issued by a limited licensee 3 15 pursuant to this section if all of the following apply: 3 16 a. The rental period of the rental agreement does not 3 17 exceed ninety consecutive days. 3 18 b. At every rental location where a rental agreement is 3 19 executed, brochures or other written materials are readily 3 20 available to a prospective renter that include all of the 3 21 following information: 3 22 (1) A clear and correct summary of the material terms of 3 23 coverage offered to renters, including the identity of the 3 24 insurer. 3 25 (2) A disclosure that the coverage offered by the rental 3 26 company may provide a duplication of coverage already provided 3 27 by a renter's personal automobile insurance policy, 3 28 homeowner's insurance policy, personal liability insurance 3 29 policy, or other source of coverage. 3 30 (3) A statement that the purchase by a renter of the types 3 31 of coverage specified in this section is not required in order 3 32 to rent a vehicle. 3 33 (4) A description of the process for filing a claim in the 3 34 event a renter elects to purchase coverage and in the event of 3 35 a claim. 4 1 c. Evidence of coverage in the rental agreement is 4 2 provided to every renter who elects to purchase such coverage. 4 3 6. Any limited license issued under this section shall 4 4 authorize a trained full-time employee of the limited licensee 4 5 to act individually on behalf, and under the supervision, of 4 6 the limited licensee with respect to the offer and sale of 4 7 coverage specified in this section. Trained full-time 4 8 employees shall be at least eighteen years of age. 4 9 7. A rental company licensed pursuant to this section 4 10 shall conduct a training program, a description of which shall 4 11 be filed with the commissioner, in which each full-time 4 12 employee being trained shall receive basic instruction about 4 13 the types of coverage specified in this section and offered 4 14 for purchase by prospective renters of rental vehicles prior 4 15 to any sales activity by such full-time employees. A rental 4 16 company shall certify any full-time employees who have 4 17 completed such a training program and a list of these 4 18 certifications shall be provided to the commissioner by 4 19 January 1 and July 1 of each year. 4 20 8. A limited licensee pursuant to this section shall not 4 21 be required to treat moneys collected from renters purchasing 4 22 insurance when renting vehicles as moneys received in a 4 23 fiduciary capacity, provided that the charges for coverage are 4 24 itemized and are ancillary to a rental agreement. The offer 4 25 or sale of insurance not in conjunction with a rental 4 26 agreement shall not be permitted. 4 27 9. A limited licensee under this section shall not 4 28 advertise, represent, or otherwise hold itself out or hold any 4 29 of its employees out as licensed insurers, insurance agents, 4 30 or insurance brokers. 4 31 10. A rental company licensed pursuant to this section 4 32 shall maintain a list of the names of trained and certified 4 33 full-time employees offering the insurance products described 4 34 in subsection 4 and the date on which the training required 4 35 under subsection 7 was completed. The list, together with 5 1 paper or computer records reflecting sales of the insurance 5 2 products sold by each trained full-time employee, shall be 5 3 made available to the commissioner upon request. 5 4 11. A limited licensee shall not engage in this state in 5 5 any of the following: 5 6 a. A trade practice defined in chapter 507B as, or 5 7 determined pursuant to section 507B.6 to be, an unfair method 5 8 of competition or an unfair or deceptive act or practice in 5 9 the business of insurance. 5 10 b. An illegal sales practice or unfair trade practice as 5 11 defined in rules adopted pursuant to chapter 17A by the 5 12 commissioner. 5 13 Sec. 4. NEW SECTION. 552A.4 TERM OF LIMITED LICENSE. 5 14 A limited license issued pursuant to this chapter is valid 5 15 for three years. 5 16 Sec. 5. NEW SECTION. 522A.5 FEES. 5 17 The fee for a limited license and renewal of a limited 5 18 license is fifty dollars. 5 19 Sec. 6. NEW SECTION. 552A.6 RULES. 5 20 The commissioner shall adopt rules necessary for the 5 21 administration of this chapter. 5 22 EXPLANATION 5 23 This bill creates new Code chapter 522A, which provides for 5 24 the limited licensure of vehicle rental companies that offer 5 25 and sell certain types of insurance with the rental of 5 26 vehicles. 5 27 The bill provides that a signed, written application must 5 28 be filed with the commissioner of insurance. The bill 5 29 provides that, among other things, the application shall list 5 30 all rental locations of the applicant. The bill provides that 5 31 the commissioner may revoke or suspend a limited license or 5 32 impose other penalties as the commissioner deems necessary for 5 33 a violation of the provisions of new Code chapter 522A. 5 34 The bill provides that a limited licensee may offer or sell 5 35 insurance issued by an insurance carrier authorized to do 6 1 business in this state and only in connection with and 6 2 incidental to the rental of a vehicle. The bill provides that 6 3 a limited licensee may offer or sell certain personal accident 6 4 insurance, certain liability insurance, certain personal 6 5 effects insurance, roadside assistance and emergency sickness 6 6 protection programs, and any other travel or automobile- 6 7 related coverage approved by the commissioner. 6 8 The bill provides that a limited license shall only be 6 9 issued if the rental period does not exceed 90 days, certain 6 10 information is provided and disclosed to prospective renters, 6 11 and evidence of coverage in the rental agreement is disclosed 6 12 to every renter who elects to purchase such coverage. 6 13 The bill provides that a trained full-time employee of the 6 14 limited licensee is authorized to offer and sell coverage on 6 15 behalf of the limited licensee. The bill provides that a 6 16 trained full-time employee must complete a training program 6 17 conducted by the limited licensee and the limited licensee 6 18 must file with the commissioner a list of all employees that 6 19 have completed the training. 6 20 The bill provides that a limited licensee shall not be 6 21 required to treat moneys collected from renters purchasing 6 22 insurance when renting vehicles as moneys received in a 6 23 fiduciary capacity. 6 24 The bill prohibits a limited licensee or a trained full- 6 25 time employee from advertising, representing, or otherwise 6 26 holding themselves out as a licensed insurer, insurance agent, 6 27 or insurance broker. 6 28 The bill requires limited licensees to maintain certain 6 29 records regarding trained full-time employees and sales 6 30 records. The bill prohibits illegal sales practices as 6 31 defined in the Code and the administrative code. 6 32 The bill provides that a limited license issued under new 6 33 Code chapter 522A shall be for a term of three years and cost 6 34 $50. 6 35 LSB 3002SC 78 7 1 tm/jw/5
Text: SSB01182 Text: SSB01184 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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