Report Title:
Motor Vehicle Rental Company; Limited Insurance License
Description:
Authorizes the Insurance Commissioner to issue rental car companies a limited license to sell individual accident, casualty, and other travel or vehicle-related insurance coverage that is incidental to the rental of passenger vehicles.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2102 |
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TWENTY-FIRST LEGISLATURE, 2002 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INSURANCE LICENSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to authorize the insurance commissioner to issue limited licenses to motor vehicle rental or leasing companies allowing these companies to sell insurance in connection with, and incidental to the rental of passenger motor vehicles.
SECTION 2. Section 431:9-214, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The commissioner may issue:
(1) A limited license to each individual who has charge of vending machines used in this State for the effectuation of travel insurance;
(2) A limited license to any individual who sells policies of accident and sickness insurance as a promotional device to improve the circulation of a newspaper in this State;
(3) A limited license to creditors for the purposes of enrolling debtors under a group credit life insurance or group credit disability insurance policy, issuing certificates of insurance pursuant thereto, or issuing individual credit life insurance or credit disability insurance policies to debtors; [or]
(4) A limited credit insurance license to any individual who sells policies of individual or group credit life, credit accident and health, credit involuntary unemployment, or credit property insurance provided the individual satisfactorily passes a prelicensing examination that is limited to the kinds of insurances marketed through creditors[.]; or
(5) A limited license to any rental car company and its employees to sell individual accident and sickness insurance covering the risks of travel, casualty insurance including liability and personal effects insurance, roadside assistance protection, and any other travel or vehicle-related coverage offered in connection with and incidental to the rental of motor vehicles; provided:
(A) The vehicles rented are private passenger-type motor vehicles for which a commercial driver's license is not required, and the rental period does not exceed ninety consecutive days;
(B) Written information is made readily available to vehicle renters at the rental agreement location that:
(i) Clearly summarizes the material terms of coverage offered to renters and identifies the insurer;
(ii) Discloses that coverage offered may duplicate coverage under a renter's, personal automobile insurance or other existing coverage;
(iii) States that a vehicle may be rented without purchasing insurance; and
(iv) If a renter elects to purchase insurance coverage, describes the process for filing a claim;
(C) Evidence of insurance coverage in the rental agreement is disclosed to every renter who purchases such coverage;
(D) The rental company conducts a training program that:
(i) Provides employees with basic instruction about the insurance coverage offered by the rental company; and
(ii) May consist of a live, electronic, or video training program that takes place at a location affiliated with the rental car company that is convenient for employees;
and
(E) Sales by employees are subject to rental company supervision.
Notwithstanding any other law to the contrary, a rental company licensed under this paragraph shall not be required to hold funds paid for insurance coverage in a fiduciary capacity or in separate trust accounts.
As used in this paragraph, "rental car company" means any person or entity whose primary business is providing motor vehicles to the public under a written agreement setting forth the terms and conditions governing the use of a motor vehicle by a lessee."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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