Text: HF02409 Text: HF02411 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 462A.7A WATERCRAFT RENTAL –
1 2 COLLISION DAMAGE WAIVER.
1 3 1. For the purposes of this section:
1 4 a. "Authorized operator" means any of the following:
1 5 (1) A customer to whom a watercraft is rented.
1 6 (2) A person expressly listed by a rental company on a
1 7 rental agreement as an authorized operator.
1 8 (3) A customer's spouse, if the spouse satisfies the
1 9 rental company's minimum age requirement.
1 10 (4) A customer's employer or coworker, if the employer or
1 11 coworker is engaged in a business activity with the customer
1 12 to whom the watercraft is rented and satisfies the rental
1 13 company's minimum age requirement.
1 14 b. "Collision damage waiver" means a contract or
1 15 contractual provision, whether separate from or part of a
1 16 rental agreement, whereby the rental company agrees, for a
1 17 charge, to waive claims against an authorized operator for
1 18 all, or any portion of, damages to the rental watercraft, loss
1 19 due to theft of the rental watercraft, or damages resulting
1 20 from the loss of use of the rental watercraft.
1 21 c. "Customer" means a person entering into a rental
1 22 agreement and obtaining the use of a rental watercraft from a
1 23 rental company under the terms of the rental agreement.
1 24 d. "Rental agreement" means a written contract containing
1 25 the terms and conditions for the use of a rental watercraft by
1 26 a customer for a term of sixty days or less.
1 27 e. "Rental company" means a person in the business of
1 28 providing rental watercraft to customers.
1 29 f. "Rental watercraft" means any vessel which through the
1 30 buoyance of water floats upon the water and is capable of
1 31 carrying one or more persons, and which, upon the execution of
1 32 a rental agreement, is made available to a customer for the
1 33 customer's use or other authorized operator's use.
1 34 2. A rental company shall not hold, or attempt to hold, an
1 35 authorized operator liable for physical damage to a rental
2 1 watercraft, loss due to theft of a rental watercraft, or
2 2 damages resulting from the loss of use of a rental watercraft,
2 3 unless the rental company offers the customer a collision
2 4 damage waiver under the terms and conditions described in
2 5 subsection 3, or unless one or more of the following apply:
2 6 a. The damage or loss is caused intentionally by an
2 7 authorized operator or is a result of the authorized
2 8 operator's willful, abusive, reckless, or wanton misconduct.
2 9 b. The damage or loss arises out of the authorized
2 10 operator's operation of the rental watercraft while
2 11 intoxicated or under the influence of a drug.
2 12 c. The damage or loss is caused while the authorized
2 13 operator is engaged in a race, training activity, contest, or
2 14 use of the rental watercraft for an illegal purpose.
2 15 d. The rental agreement is based on false or misleading
2 16 information supplied by the customer or an authorized
2 17 operator.
2 18 e. The damage or loss is caused by operating the rental
2 19 watercraft other than on navigable waters.
2 20 f. The damage or loss arises out of the use of the rental
2 21 watercraft to transport persons or property for hire or to
2 22 push or tow anything other than as set forth in the rental
2 23 agreement.
2 24 g. The damage or loss occurs while the rental watercraft
2 25 is operated by an operator other than an authorized operator.
2 26 h. The damage or loss arises out of the use of the rental
2 27 watercraft outside the continental United States unless such
2 28 use is specifically authorized by the rental agreement.
2 29 i. The damage or loss is attributable to theft which
2 30 occurs with the prior knowledge or knowing participation of an
2 31 authorized operator, or which is attributable to the
2 32 authorized operator leaving the rental watercraft unattended
2 33 with the keys in the rental watercraft.
2 34 This section does not alter the liability of a customer or
2 35 authorized operator for bodily injury or the death of another
3 1 and for property damage other than to the rental watercraft in
3 2 accordance with the rental agreement. This section does not
3 3 prohibit a rental company from accepting or negotiating master
3 4 contracts with companies or governmental entities in advance
3 5 of need whereby the companies or governmental entities
3 6 specifically agree to assume liability in exchange for rate
3 7 concessions. This section does not prohibit a rental company
3 8 from entering into agreements with insurance companies to
3 9 provide replacement watercraft to insurance company customers
3 10 whereby the insurance company agrees to assume the risk of
3 11 loss.
3 12 If a damaged rental watercraft is not repaired, damages
3 13 shall not exceed the fair market value of the watercraft, as
3 14 determined in the customary market for that watercraft, less
3 15 salvage or actual sale value, plus additional license and tax
3 16 fees incurred because of the sale, plus administrative fees.
3 17 A claim shall not be made for loss of use if a damaged rental
3 18 watercraft is not repaired.
3 19 3. A rental company may offer a collision damage waiver
3 20 under the following terms and conditions:
3 21 a. All restrictions, conditions, and exclusions must be
3 22 printed in the rental agreement, or on a separate sheet or
3 23 document, in ten point or larger type; or written in pen and
3 24 ink or typewritten in or on the face of the rental agreement
3 25 in a blank space provided for such restrictions, conditions,
3 26 and exclusions. The rental agreement may provide that the
3 27 collision damage waiver may be voided under the conditions set
3 28 forth in subsection 2, paragraphs "a" through "i".
3 29 b. The rental agreement, separate sheet, or document must
3 30 clearly and conspicuously state both the daily and estimated
3 31 total charge for the collision damage waiver.
3 32 c. The rental agreement, separate sheet, or document given
3 33 to the customer prior to entering into the rental agreement
3 34 must display in ten point or larger type, the following
3 35 notice:
4 1 NOTICE: THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, A
4 2 COLLISION DAMAGE WAIVER TO COVER ALL OR PART OF YOUR
4 3 RESPONSIBILITY FOR DAMAGE TO THE RENTAL WATERCRAFT.
4 4 BEFORE DECIDING WHETHER TO PURCHASE THE COLLISION DAMAGE
4 5 WAIVER, YOU MAY WISH TO DETERMINE WHETHER YOUR OWN INSURANCE
4 6 AFFORDS YOU COVERAGE FOR DAMAGE TO THE RENTAL WATERCRAFT AND
4 7 THE AMOUNT OF THE DEDUCTIBLE UNDER YOUR OWN INSURANCE
4 8 COVERAGE. THE PURCHASE OF THIS COLLISION DAMAGE WAIVER IS NOT
4 9 MANDATORY AND MAY BE DECLINED.
4 10 The customer must separately acknowledge that the customer
4 11 received the above notice, that the customer desires to
4 12 purchase the collision damage waiver, and the terms of the
4 13 collision damage waiver to which the customer agrees.
4 14 d. The watercraft rental company shall not pay commissions
4 15 to a rental counter agent or representative for selling
4 16 collision damage waivers and shall not consider volume of
4 17 sales of collision damage waivers in an employee evaluation or
4 18 determination of promotion.
4 19 However, notwithstanding whether a rental company offers a
4 20 collision damage waiver under the provisions of this
4 21 subsection, the rental company shall not hold an authorized
4 22 operator liable for damage or loss due to theft except where
4 23 subsection 2, paragraph "i" applies.
4 24 4. Unfair or deceptive acts or practices in offering or
4 25 providing collision damage waivers include, but are not
4 26 limited to, the following:
4 27 a. A representation connected with the advertisement or
4 28 rental of a watercraft that the purchase of a collision damage
4 29 waiver is mandatory.
4 30 b. Failure to provide disclosures as required by this
4 31 section.
4 32 c. Failure to disclose in a manner likely to be noticed
4 33 and comprehended in an advertisement, as defined in section
4 34 714.16, subsection 1, paragraph "a", the availability of a
4 35 collision damage waiver, and the cost of the waiver.
5 1 d. Misrepresentation of a customer's need for a collision
5 2 damage waiver, personal accident insurance, or personal
5 3 effects insurance.
5 4 EXPLANATION
5 5 This bill provides that a watercraft rental company cannot
5 6 hold a customer liable for damages to a rental watercraft,
5 7 except under specified circumstances, unless the rental
5 8 company offers the customer a collision damage waiver, for an
5 9 additional charge, to cover all or part of the customer's
5 10 liability, as part of the rental agreement. The bill also
5 11 provides that a rental company shall not represent that the
5 12 purchase of a collision damage waiver is mandatory or
5 13 misrepresent a customer's need to have a collision damage
5 14 waiver, personal accident insurance, or personal effects
5 15 insurance.
5 16 A violation of the provisions of this bill is a simple
5 17 misdemeanor pursuant to Code section 462A.13. A simple
5 18 misdemeanor is punishable by confinement for no more than 30
5 19 days or a fine of at least $50 but not more than $100 or by
5 20 both.
5 21 LSB 5472HH 79
5 22 av/hk/91
Text: HF02409 Text: HF02411 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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