2017 -- H 5825 SUBSTITUTE A

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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, coverage shall be provided 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 March 1, 2018 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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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,

when such loss is properly documented in accordance with regulations to be promulgated before

March 1, 2018 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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