Chapter 04-054
2004
-- H 7423 AS AMENDED
Enacted 06/11/04
A N A C T
RELATING
TO LIABILITY INSURANCE - RENTAL VEHICLE COVERAGE
Introduced
By: Representative Brian P. Kennedy
Date
Introduced: January 29, 2004
It is
enacted by the General Assembly as follows:
SECTION
1. Chapter 27-7 of the General Laws entitled "Liability Insurance" is
hereby
amended
by adding thereto the following section:
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.
SECTION
2. Section 27-8-1 of the General Laws in Chapter 27-8 entitled "Casualty
Insurance
Generally" is hereby amended to read as follows:
27-8-1.
Types of insurance authorized for domestic fire and marine insurance
companies.
--
Every insurance company incorporated by or under the laws of this state, and
now
or
after this authorized to transact the business of fire or marine insurance, or
both, may, in
addition
to the business that it is now authorized by the provisions of its act of
incorporation to
do,
make insurance:
(1) On dwelling houses, stores, and all kinds of buildings, and on household
furniture
and
other property, against direct and indirect loss or damage including loss of
use or occupancy
by
fire, heat, smoke and smudge, lightning, windstorm, tornado, cyclone,
earthquake, volcanic
eruption,
hail, frost or snow, weather or climatic conditions including an excess or
deficiency of
moisture,
flood, rain, or drought, the rising of the waters of the ocean or its
tributaries,
bombardment,
invasion, insurrection, riot, civil war or commotion, military or usurped
power,
vandalism,
malicious mischief, sabotage, sit down and other strikes, acts of destruction
by order
of
any military or civil authority done to prevent the spread of a conflagration,
epidemic or
catastrophe,
or short circuits of electrical current or static electricity or any other
electrical
disturbance,
and by explosion, whether fire ensues or not, except risks pertaining to
employer's
liability
and worker's compensation; also against the legal liability of the insured, and
against the
loss,
damage, or expense, incident to a claim of that liability, arising out of the
loss or destruction
of,
or damage to, the property of any other person; also against loss or damage
caused by
burglary,
robbery, theft, pillage, looting, larceny, or any attempt at this, whether
caused or arising
at
the time of or in connection with fire, windstorm, or any other casualty
insured against or
otherwise;
(2) Against loss or damage, by water or other fluid or substance, to goods or
premises of
any
kind arising from the breakage or leakage of sprinklers, pumps, or other
apparatus erected for
extinguishing
fires, or of other conduits or containers, or by water entering through leaks
or
openings
in buildings, and from the breakage or leakage of water pipes, and against
accidental
injury
to sprinklers, pumps, apparatus, conduits, containers, or water pipes, and
against the legal
liability
of the insured, and against the loss, damage, or expense, incident to a claim
of that
liability,
arising out of the loss or destruction of, or damage to, the property of any
other person;
(3) On vessels, boats, craft, aircraft, cars, automobiles and vehicles of every
kind,
cargoes,
goods, merchandise, freights, and other property against loss or damage by all
or any of
the
risks of lake, river, canal, and inland navigation and transportation and all
goods, freights,
cargoes,
merchandise, effects, disbursements, profits, moneys, bullion, precious stones,
securities,
chose
in action, evidences of debt, valuable papers, bottomry and respondentia
interests, and all
other
kinds of property and interests in them, in respect to, appertaining to, or in
connection with
any
and all risks or perils of navigation, transit, or transportation including war
risks, on or under
any
seas or other waters, on land or in the air, or while being assembled, packed,
crated, baled,
compressed,
or similarly prepared for shipment or while awaiting shipment, or during any
delays,
storage,
transshipment, or reshipment, including marine builder's risks and all personal
property
floater
risks;
(4) On persons or to property in connection with or appertaining to a marine,
inland
marine,
transit, or transportation insurance, including the liability for the loss of
or damage to
either,
arising out of or in connection with the construction, repair, operation,
maintenance, or use
of
the subject matter of that insurance, but not including life insurance; but,
except as specified in
this
section, this shall not mean insurances against loss by reason of bodily injury
to the person;
(5) On precious stones, jewels, jewelry, gold, silver, and other precious
metals, whether
used
in business or trade or otherwise and whether those stones and metals are in
the course of
transportation
or otherwise;
(6) On automobiles and other vehicles whether operated on rails or otherwise,
airplanes,
seaplanes,
dirigibles, or other aircraft, and elevators and other conveyors, and the
breakage of
glass
in them, whether stationary or being operated under their own power, which
shall include
all
or any part of the hazards of fire, explosion, transportation, collision, and
the loss by legal
liability
for damage to property resulting from the maintenance and use of automobiles
and other
vehicles,
airplanes, seaplanes, dirigibles, and other aircraft, and elevators and other
conveyors;
(7) On or against loss or damage to property resulting from the maintenance and
use of
automobiles
and other vehicles whether operated on rails or otherwise, vessels, elevators
and
other
conveyors, and aircraft, and on or against loss by burglary, larceny or theft,
vandalism, or
malicious
mischief, or by the wrongful conversion, disposal, or concealment of
automobiles, and
other
vehicles, whether held under conditional sales contracts or subject to chattel
mortgages, or
any
one or more of those hazards, but shall not include insurance against loss by
reason of bodily
injury
to the person; and
(8) Against loss of or damage to any property resulting from any cause which is
a proper
subject
of insurance; provided, that before any company shall assume risks other than
those
enumerated
in this section it shall first obtain the approval of the insurance
commissioner; and.
(9) For liability coverage assumed under a written contract under the
property damage
section
of an insured's own private passenger automobile insurance policy, which
property
damage
coverage shall extend to a rented motor vehicle without regard to negligence
for a period
not
to exceed forty-five (45) consecutive days.
SECTION
3. This act shall take effect upon passage.
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LC01195
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