2023 -- S 0618

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LC001980

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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

     

     Introduced By: Senators Gallo, Lombardo, DiPalma, and Ciccone

     Date Introduced: March 07, 2023

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

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Insurance" is hereby amended to read as follows:

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     27-7-6. Rental vehicle coverage.

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     (a) For liability assumed under a written contract, coverage shall be provided under the

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property damage liability section of an insured’s private passenger automobile insurance policy.

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Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds

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(10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days.

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     (b) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive type

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losses.

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     (c) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that a

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claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace

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the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To

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establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained

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damage, regardless of fault, requires repair, and will be out of service for the period of time

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determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of

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use payments shall be made up until the time the vehicle owner receives the property damage

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payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided

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regardless of fleet utilization.

 

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     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 provide that liability insurance coverage would be provided for loss of the

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use of a rental motor vehicle, with limitations.

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     This act would take effect upon passage.

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