2017 -- H 5825

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LC001953

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

     Introduced By: Representatives Ucci, Barros, Solomon, and Corvese

     Date Introduced: March 02, 2017

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability

Insurance" is hereby amended to read as follows:

     27-7-6. Rental vehicle coverage.

     For liability assumed under a written contract for a rental motor vehicle less than ten

thousand pounds (10,000 lbs.), rented for a period not to exceed sixty (60) consecutive days,

coverage shall be provided without regard to negligence under the property damage liability

section of an insured's private passenger automobile insurance policy. Property damage coverage

shall extend to a rented motor vehicle, under ten thousand (10,000) lbs, without regard to

negligence for a period not to exceed sixty (60) consecutive days. Coverage shall be included for

loss of use of the rental motor vehicle upon reasonable documented proof of actual economic loss

incurred as a result of the loss of use of the vehicle, in accordance with regulations promulgated

before December 31, 2017 by the department of business regulation. The regulations shall include

the process and documentation required to establish loss of use; however, it shall not be based

solely upon one hundred percent (100%) fleet utilization.

     SECTION 2. This act shall take effect upon passage.

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LC001953

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

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     This act would require liability insurance to cover loss of use of a rental motor vehicle,

without regard to negligence, when such loss is properly documented in accordance with

regulations to be promulgated by the department of business regulation. Loss of use may not be

based solely upon one hundred percent (100%) fleet utilization.

     This act would take effect upon passage.

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