20-331. Rental car agents; definitions

A. The director may issue to a rental company that has complied with the requirements of this section a license that authorizes the rental company as a rental car agent to offer or sell insurance in connection with and incidental to rental agreements. Notwithstanding section 20-290, subsection B, a rental car agent is not required to have an individual licensee in each office or other rental site or place where insurance is transacted.

B. An applicant for a rental car agent license shall file with the director a written application that is in a form prescribed by the director and that is signed by an officer of the applicant. The application shall specify all locations at which the licensee may conduct business under the license. The licensee shall provide the director at least thirty days' prior notice before conducting business under the license at any additional location.

C. A rental car agent may offer or sell insurance at the rental company office or other rental site or process a preselection of coverage in a master, corporate, group or individual rental agreement for any of the following kinds or types of insurance, separately or in combination:

1. Accident and health or sickness insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses that result from an accident that occurs during the rental period.

2. Liability insurance that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability that arises from the operation of the rental vehicles, including uninsured and underinsured motorist coverage separately or in combination with other liability insurance.

3. Personal property insurance that provides coverage, as applicable, to renters and other vehicle occupants for the loss of or damage to personal effects that occurs during the rental period.

4. Vehicle breakdown coverage.

5. Physical damage insurance that provides coverage to renters and other authorized drivers of rental vehicles for property damage liability that arises from the operation of the vehicle.

D. A rental car agent is not subject to the continuing education requirements of chapter 18 of this title.

E. A rental car agent shall not offer or sell insurance pursuant to this section unless:

1. The rental period of the rental agreement is ninety consecutive days or less.

2. The rental car agent provides brochures or other written materials to the prospective renter that:

(a) Summarize the material terms and conditions of coverage offered to renters, including the identity of the insurer.

(b) Describe the process for filing a claim.

3. The rental car agent makes the following disclosures to the renter and the renter acknowledges the disclosures in writing:

(a) That the insurance policies offered by the rental car agent may provide a duplication of coverage already provided by a renter's personal automobile insurance policy or by another source of coverage.

(b) That the purchase by the renter of the kinds of insurance prescribed in this section is not required in order to rent a vehicle.

4. Evidence of coverage is stated on the face of the rental agreement.

5. Costs for the insurance are separately itemized in the rental agreement.

6. The insurance is provided under a group or master policy issued to the rental company by an insurer authorized to transact the applicable kinds or types of insurance in this state or by a surplus lines insurer in accordance with article 5 of this chapter.

F. Any salaried employee of a rental car agent may act on behalf and under the supervision of the rental car agent in matters relating to the conduct of business under the license issued pursuant to this section. The conduct of an employee or agent of a rental car agent acting within the scope of employment or agency is deemed the conduct of the rental car agent for purposes of this article.

G. Each rental car agent licensed pursuant to this section shall conduct a training program that provides employees and agents of the rental company with basic instruction about the provisions of this section, including the kinds of coverage prescribed in this section.

H. A rental car agent shall not:

1. Offer or sell insurance except in conjunction with and incidental to rental agreements.

2. Advertise, represent or otherwise portray itself or any of its employees or agents as licensed insurers or insurance producers.

3. Pay any person any compensation, fee or commission dependent on the placement of insurance under the license issued pursuant to this section.

I. Nothing in this section prohibits production payments or incentive payments to an employee if the payments are not dependent on the sale of insurance.

J. To the extent not inconsistent with this article, section 20-281, section 20-286, subsections B, C and D, sections 20-289 and 20-289.01, section 20-290, subsection A and sections 20-291, 20-292, 20-295, 20-296, 20-297, 20-298, 20-299, 20-301 and 20-302 apply to rental car agents.

K. For the purposes of this section:

1. " Rental agreement" means any written agreement that states the terms and conditions that govern the use of a vehicle provided by the rental company for rent or lease for a rental period of ninety days or less.

2. " Rental car agent" means a rental company that is licensed pursuant to this section.

3. " Rental company" means any firm or corporation in the business of renting vehicles to renters under a rental agreement.

4. " Rental period" means the term of the rental agreement.

5. " Rental vehicle" or " vehicle" means a motor vehicle operated by a driver who is not required to possess a commercial driver license to operate the motor vehicle and the motor vehicle is either:

(a) A private passenger motor vehicle, including a passenger van, minivan or sport utility vehicle.

(b) A cargo vehicle, including a cargo van, pickup truck and truck with a gross vehicle weight of less than twenty-six thousand pounds.

6. " Renter" means any person who obtains the use of a vehicle from a rental company under the terms of a rental agreement.