SLS 16RS-126 ENGROSSED
2016 Regular Session
SENATE BILL NO. 27
BY SENATOR JOHN SMITH
INSURERS. Provides relative to motor vehicle rental insurers. (8/1/16)
1 AN ACT
2 To amend and reenact R.S. 22:1762, 1763(A), and 1766(A) and (B), relative to motor
3 vehicle rental insurers; to provide with respect to limited licensing; to authorize
4 employees and authorized agents to be licensed under a limited licensee's license
5 when acting for or on behalf of a limited licensee; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1762, 1763(A), and 1766(A) and (B) are hereby amended and
8 reenacted to read as follows:
9 §1762. Definitions
10 As used in this Part, the following words are defined as follows:
11 (1) "Authorized agent" means an agent or representative authorized by the
12 limited licensee to act individually on behalf, and under the supervision, of the limited
13 licensee to offer or sell insurance in connection with and incidental to the rental of
14 vehicles.
15 (2) "Commissioner" shall mean means the commissioner of insurance.
16 (2)(3) "Department" shall mean means the Department of Insurance.
17 (3)(4) "Limited licensee" means a person or entity authorized to sell certain
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 27
SLS 16RS-126 ENGROSSED
1 coverages relating to the rental of vehicles pursuant to the provisions of this Part.
2 (4) (5) "Rental agreement" means any written agreement setting forth the terms and
3 conditions governing the use of a vehicle provided by the rental company for rental or lease.
4 (5) (6) "Rental company" means any person or entity in the business of providing
5 primarily private passenger vehicles to the public under a rental agreement for a period not
6 to exceed ninety days.
7 (6) (7) "Rental period" means the term of the rental agreement.
8 (7) (8) "Renter" means any person obtaining the use of a vehicle from a rental
9 company under the terms of a rental agreement for a period not to exceed ninety days.
10 (8) (9) "Vehicle" or "rental vehicle" means a motor vehicle of the private passenger
11 type including passenger vans, minivans, and sport utility vehicles, and of the cargo type
12 including but not limited to cargo vans, pickup trucks and trucks with a gross vehicle weight
13 of less than twenty-six thousand pounds and which do not require the operator to possess a
14 commercial driver's license.
15 §1763. Limited licensing; fees
16 A. The commissioner may issue to a rental company, whether such rental
17 company is a foreign or domestic company, that has complied with the requirements
18 of this Part, a limited license authorizing the limited licensee and its employees and
19 authorized agents to offer or sell insurance in connection with the rental of vehicles.
20 Each such employee and authorized agent shall be deemed to be licensed under
21 the limited licensee's license when acting for or on behalf of the limited licensee.
22 * * *
23 §1766. Authorized employees and agents
24 A. Any limited license issued under this Part shall also authorize any
25 employee employees and any authorized agents of the limited licensee to act
26 individually on behalf, and under the supervision, of the limited licensee with respect
27 to the kinds of coverage specified in this Part.
28 B. Each rental company licensed pursuant to this Part shall conduct a training
29 program in which employees and authorized agents being trained shall receive
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1 basic instruction about the kinds of coverage specified in this Part and offered for
2 purchase by prospective renters of rental vehicles.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Cooper.
DIGEST
SB 27 Engrossed 2016 Regular Session John Smith
Present law permits the commissioner to issue to a rental company, whether foreign or
domestic, that has complied with the requirements of present law, a limited license
authorizing the limited licensee and its employees to offer or sell insurance in connection
with the rental of vehicles.
Proposed law retains present law and defines "authorized agent" as an agent or representative
authorized by the limited licensee to act individually on behalf, and under the supervision,
of the limited licensee to offer or sell insurance in connection with and incidental to the
rental of vehicles. Adds authorized agents to those who may offer or sell insurance in
connection with vehicle rentals.
Proposed law provides that each such employee and authorized agent shall be deemed to be
licensed under the limited licensee's license when acting for or on behalf of the limited
licensee.
Present law requires any limited license issued pursuant to present law to authorize any
employee of the limited licensee to act individually on behalf, and under the supervision, of
the limited licensee with respect to the kinds of coverage specified in present law.
Proposed law retains present law and includes authorized agents with the ability to act
individually on behalf, and under the supervision, of the limited licensee.
Effective August 1, 2016.
(Amends R.S. 22:1762, 1763(A) and 1766 (A) and (B))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original
bill
1. Defines "authorized agent".
2. Makes technical changes.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.