H.B. 1322                                               VETOES

that [he] THE OWNER OR LESSOR has security for the vehicle in the same form and
providing for the same minimum benefits as the security required by Title 17 of this
article for motor vehicles.

(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

1. IN THIS PARAGRAPH. "REPLACEMENT VEHICLE" MEANS A
VEHICLE THAT AN INDIVIDUAL RENTS TEMPORARILY TO USE WHILE A VEHICLE
OWNED BY THE INDIVIDUAL IS BEING SERVICED OR REPAIRED.

2. "REPLACEMENT VEHICLE" INCLUDES A VEHICLE THAT IS
LOANED TO AN INDIVIDUAL BY AN AUTOMOBILE REPAIR FACILITY OR A DEALER
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
INDIVIDUALS APPLICABLE PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY OR
BECAUSE OF BREAKDOWN REPAIR SERVICE, DAMAGE, OR THEFT.

(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
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.

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