2023 -- H 6027 SUBSTITUTE A AS AMENDED | |
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LC002061/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2023 | |
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A N A C T | |
RELATING TO INSURANCE -- LIABILITY INSURANCE -- RENTAL VEHICLE | |
COVERAGE | |
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Introduced By: Representative Arthur J. Corvese | |
Date Introduced: March 01, 2023 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability |
2 | Insurance" is hereby amended to read as follows: |
3 | 27-7-6. Rental vehicle coverage. |
4 | (a) For liability assumed under a written contract, coverage shall be provided under the |
5 | property damage liability section of an insured’s private passenger automobile insurance policy. |
6 | Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds |
7 | (10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days. |
8 | (b) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive type |
9 | losses. |
10 | (c) Whenever liability is accepted by an insurance company involving an accident that |
11 | results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall |
12 | extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved |
13 | party receives the total loss property damage check. |
14 | (d) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that a |
15 | claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace |
16 | the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To |
17 | establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained |
18 | damage, regardless of fault, requires repair, and will be out of service for the period of time |
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1 | determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of |
2 | use payments shall be made up until the time the vehicle owner receives the property damage |
3 | payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided |
4 | regardless of fleet utilization. |
5 | 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 -- RENTAL VEHICLE | |
COVERAGE | |
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1 | This act would provide that whenever liability is accepted by an insurance company |
2 | involving an accident that results in their insured’s causing a total loss of the other party’s vehicle, |
3 | the at-fault carrier shall extend coverage for a rental vehicle for not less than an additional seven |
4 | (7) days after the aggrieved party receives the total loss property damage check. |
5 | This act would take effect upon passage. |
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