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Session Laws, 1996
Volume 794, Page 3819   View pdf image
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PARRIS N. GLENDENING, Governor                             Ch. 673

(2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
OWNER OF A VEHICLE TO BE RENTED MAY SATISFY THE REQUIREMENT OF
PARAGRAPH (1) OF THIS SUBSECTION BY MAINTAINING AN EXCESS INSURANCE
POLICY WHICH EXTENDS COVERAGE TO A MOTOR VEHICLE WHILE IT IS RENTED.

(II) IF THE OWNER OF A VEHICLE TO BE RENTED PROVIDES
COVERAGE AS PROVIDED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE
RENTAL AGREEMENT SIGNED BY THE RENTER SHALL CONTAIN A PROVISION ON
THE BASE OF THE AGREEMENT, STATED IN BOLD TYPE, INFORMING THE RENTER
THAT THE OWNER'
S COVERAGE IS EXCESS ONLY IN THIS PARAGRAPH.
"REPLACEMENT VEHICLE" MEANS A VEHICLE THAT IS LOANED BY AN AUTO REPAIR
FACILITY OR A DEALER, OR THAT AN INDIVIDUAL RENTS TEMPORARILY. TO USE
WHILE A VEHICLE OWNED BY THE INDIVIDUAL IS NOT IN USE BECAUSE OF LOSS. AS
"LOSS" IS DEFINED IN THAT INDIVIDUAL'S APPLICABLE PRIVATE PASSENGER
AUTOMOBILE INSURANCE POLICY, OR BECAUSE OF BREAKDOWN. REPAIR. SERVICE.
DAMAGE, OR THEFT OR DAMAGE.

(II) SUBJECT TO SUBPARAGRAPH (III) OF THIS PARAGRAPH, AN
OWNER OF A REPLACEMENT VEHICLE MAY SATISFY THE REQUIREMENT OF
PARAGRAPH (1) OF THIS SUBSECTION BY MAINTAINING AN INSURANCE POLICY
THAT IS EXCESS TO ANY OTHER INSURANCE POLICY AND THAT EXTENDS
COVERAGE TO THE OWNER'S VEHICLE WHILE IT IS USED AS A REPLACEMENT
VEHICLE.

(III) IF AN OWNER OF A REPLACEMENT VEHICLE PROVIDES
COVERAGE AS PROVIDED UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE
AGREEMENT FOR THE REPLACEMENT VEHICLE TO BE SIGNED BY THE RENTER OR
THE INDIVIDUAL TO WHOM THE VEHICLE IS LOANED SHALL CONTAIN A PROVISION
ON THE FACE OF THE AGREEMENT. IN 12 POINT BOLD TYPE, THAT INFORMS THE
INDIVIDUAL THAT THE COVERAGE ON THE VEHICLE BEING SERVICED OR
REPAIRED IS PRIMARY COVERAGE FOR THE REPLACEMENT VEHICLE AND THE
COVERAGE MAINTAINED BY THE OWNER ON THE REPLACEMENT VEHICLE IS
EXCESS ONLY.

(b)     Notwithstanding any provision of the rental agreement to the contrary, the
security required under this section shall cover the owner of the vehicle and each person
driving or using the vehicle with the permission of the owner [or lessee].

(c)     If the Administration finds that the vehicle owner has failed or is unable to
maintain the required security, the Administration shall suspend the registration of the
vehicle.

SECTION 2. AND BE IT FURTHER ENACTED, That:

(a)     There is a Task Force to Examine Liability Insurance on Rental Vehicles.

(b)     The Task Force consists of the following 7 members:

(1)     1 Senator appointed by the President of the Senate;

(2)     1 Delegate appointed by the Speaker of the House of Delegates;

- 3819 -

 

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Session Laws, 1996
Volume 794, Page 3819   View pdf image
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