Maryland 2022 Regular Session

Maryland Senate Bill SB835 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0835
6	6
7	7	SENATE BILL 835
8	8	C4 2lr1939
9	9	CF 2lr2583
10	10	By: Senator Beidle
11	11	Introduced and read first time: February 7, 2022
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Motor Vehicle Insurance – Comprehensive Coverage and Collision Damage 2
19	19	Waiver 3
20	20
21	21	FOR the purpose of requiring that the lessor of certain vehicles under a rental agreement 4
22	22	or a loaner agreement containing a collision damage waiver provide the waiver in a 5
23	23	specified form; requiring motor vehicle insurance policies that include collision or 6
24	24	comprehensive coverage to include coverage for certain Class E vehicles, vehicles 7
25	25	used as replacement vehicles, and vehicles rented under a peer–to–peer car sharing 8
26	26	agreement; and generally relating to motor vehicle insurance and rental and 9
27	27	replacement vehicles. 10
28	28
29	29	BY repealing and reenacting, with amendments, 11
30	30	Article – Commercial Law 12
31	31	Section 14–2101 13
32	32	Annotated Code of Maryland 14
33	33	(2013 Replacement Volume and 2021 Supplement) 15
34	34
35	35	BY repealing and reenacting, with amendments, 16
36	36	Article – Insurance 17
37	37	Section 19–512 18
38	38	Annotated Code of Maryland 19
39	39	(2017 Replacement Volume and 2021 Supplement) 20
40	40
41	41	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
42	42	That the Laws of Maryland read as follows: 22
43	43
44	44	Article – Commercial Law 23
45	45
46	46	14–2101. 24
47	47
48	48	(a) (1) In this section the following words have the meanings indicated. 25 2 SENATE BILL 835
49	49
50	50
51	51
52	52	(2) “Car sharing period” has the meaning stated in § 19–520 of the 1
53	53	Insurance Article. 2
54	54
55	55	(3) “Collision damage waiver” means: 3
56	56
57	57	(i) With respect to a rental AGREEMENT OR LOANER agreement, 4
58	58	any contract, whether separate from or part of a rental AGREEMENT OR LOANER 5
59	59	agreement, in which the lessor agrees, for a charge, to waive all or part of any claims 6
60	60	against the lessee for damages to the rental motor vehicle during the term of the rental 7
61	61	agreement; and 8
62	62
63	63	(ii) With respect to a peer–to–peer car sharing program agreement, 9
64	64	a provision in the peer–to–peer car sharing program agreement in which it is agreed, for a 10
65	65	charge, that all or part of any claims against a shared vehicle driver for damages to a shared 11
66	66	motor vehicle during a car sharing period are waived. 12
67	67
68	68	(4) “Lessee” means any person obtaining the use of a rental motor vehicle 13
69	69	from a lessor under the terms of a rental agreement OR LOANER AGREEMENT . 14
70	70
71	71	(5) “Lessor” means any person in the business of providing rental motor 15
72	72	vehicles to the public OR LOANER VEHICLES T O CUSTOMERS . 16
73	73
74	74	(6) “LOANER AGREEMENT ” MEANS A WRITTEN AGRE EMENT SETTING 17
75	75	FORTH THE TERMS AND CONDITIONS GOV ERNING THE USE OF A LOANER VEHICLE 18
76	76	BY A LESSEE FOR A PE RIOD OF LESS THAN 180 DAYS. 19
77	77
78	78	(7) “LOANER VEHICLE ” MEANS A PASSENGER CA R LOANED TO A 20
79	79	CUSTOMER OF A LESSOR UNDER A LOANER AGREE MENT. 21
80	80
81	81	[(6)] (8) “Passenger car” means any motor vehicle that is: 22
82	82
83	83	(i) A Class A (passenger) vehicle under § 13 –912 of the 23
84	84	Transportation Article; 24
85	85
86	86	(ii) A Class M (multipurpose) vehicle under § 13 –937 of the 25
87	87	Transportation Article if the vehicle is used primarily for transporting passengers; or 26
88	88
89	89	(iii) A Class E (truck) vehicle that is used primarily for personal, 27
90	90	household, family, or agricultural purposes and that, under § 13–917 of the Transportation 28
91	91	Article, does not exceed a three–quarter ton capacity or 7,000 pounds gross vehicle weight. 29
92	92
93	93	[(7)] (9) “Peer–to–peer car sharing program agreement” has the meaning 30
94	94	stated in § 19–520 of the Insurance Article. 31
95	95	SENATE BILL 835 3
96	96
97	97
98	98	[(8)] (10) “Rental agreement” means a written agreement setting forth the 1
99	99	terms and conditions governing the use of a rental motor vehicle by a lessee for a period of 2
100	100	less than 180 days. 3
101	101
102	102	[(9)] (11) “Rental motor vehicle” means a passenger car which, on 4
103	103	execution of a rental agreement, is made available to a lessee for the lessee’s use. 5
104	104
105	105	(12) “REPLACEMENT VEHICLE ” HAS THE MEANING STAT ED IN § 6
106	106	18–102(A)(2)(I) OR § 18.5–102(A)(2)(I) OF THE TRANSPORTATION ARTICLE. 7
107	107
108	108	[(10)] (13) “Shared motor vehicle” has the meaning stated in § 19–520 of the 8
109	109	Insurance Article. 9
110	110
111	111	[(11)] (14) “Shared vehicle driver” has the meaning stated in § 19–520 of the 10
112	112	Insurance Article. 11
113	113
114	114	(b) The Division shall develop a form for collision damage waivers for lessors and 12
115	115	for peer–to–peer car sharing programs, and shall make it available to all lessors and 13
116	116	peer–to–peer car sharing programs in the State. 14
117	117
118	118	(c) The form shall meet the requirements specified in subsection (e) of this 15
119	119	section. 16
120	120
121	121	(d) (1) A lessor may not deliver or issue for delivery in this State a rental motor 17
122	122	vehicle agreement OR LOANER AGREEMENT containing a collision damage waiver, unless 18
123	123	the lessor uses a [separate] collision damage waiver form provided by the Division that 19
124	124	meets the requirements specified in subsection (e) of this section. 20
125	125
126	126	(2) A peer–to–peer car sharing program may not deliver or issue for 21
127	127	delivery in the State a peer–to–peer car sharing program agreement containing a collision 22
128	128	damage waiver, unless the peer–to–peer car sharing program uses a [separate] collision 23
129	129	damage waiver form provided by the Division that meets the requirements specified in 24
130	130	subsection (e) of this section. 25
131	131
132	132	(e) The collision damage waiver form shall contain the following requirements: 26
133	133
134	134	(1) The collision damage waiver shall be understandable and written in 27
135	135	simple and readable plain language; 28
136	136
137	137	(2) The terms of the collision damage waiver, including, but not limited to, 29
138	138	any conditions or exclusions applicable to the collision damage waiver, shall be prominently 30
139	139	displayed; 31
140	140
141	141	(3) All restrictions, conditions, or provisions in, or endorsed on, the collision 32
142	142	damage waiver are PROMINENTLY DISPLAYE D IN ANY ELECTRONIC FORMS OR printed 33
143	143	in type at least as large as Brevier or 10 point type; 34 4 SENATE BILL 835
144	144
145	145
146	146
147	147	(4) The collision damage waiver shall include a statement of the total 1
148	148	charge for the anticipated rental period, LOANER PERIOD , or car sharing period or the 2
149	149	anticipated total daily charge; 3
150	150
151	151	(5) The agreement containing the collision damage waiver shall display the 4
152	152	following notice PROMINENTLY ON ANY E LECTRONIC FORMS AND on the face of [the] A 5
153	153	WRITTEN agreement, IF ANY, set apart and in boldface type, and in type at least as large 6
154	154	as 10 point type: 7
155	155
156	156	“Notice: 8
157	157
158	158	This contract offers, for an additional charge, a collision damage waiver to cover your 9
159	159	responsibility for damage to the vehicle. Before deciding whether to purchase the collision 10
160	160	damage waiver, you may wish to determine whether your own automobile insurance affords 11
161	161	you coverage for damage to the rental vehicle, LOANER VEHICLE , or shared motor vehicle 12
162	162	and the amount of the deductible under your own insurance coverage. The purchase of this 13
163	163	collision damage waiver is not mandatory and may be waived. Maryland law requires that 14
164	164	all Maryland residents’ insurance policies with collision coverage OR COMPREHENSIVE 15
165	165	COVERAGE automatically extend that collision coverage OR COMPREHENSIVE 16
166	166	COVERAGE to passenger cars rented, USED AS REPLACEMENT VEHICLES, OR USED AS 17
167	167	A SHARED MOTOR VEHIC LES or motor vehicles shared by the insureds named in the policy 18
168	168	[for a period of 30 days or less].”; and 19
169	169
170	170	(6) Any additional information that the Division considers reasonable and 20
171	171	necessary to carry out the provisions of this subtitle. 21
172	172
173	173	(f) A failure by a lessor OR PEER–TO–PEER CAR SHARING PRO GRAM to comply 22
174	174	with subsection (d) of this section is an unfair, ABUSIVE, or deceptive trade practice within 23
175	175	the meaning of Title 13, Subtitle 3 of this article. 24
176	176
177	177	Article – Insurance 25
178	178
179	179	19–512. 26
180	180
181	181	(a) (1) Each insurer that issues, sells, or delivers a motor vehicle insurance 27
182	182	policy in the State shall offer collision coverage for damage to insured motor vehicles subject 28
183	183	to deductibles of $50 to $250 in $50 increments. 29
184	184
185	185	(2) Collision coverage shall provide insurance, without regard to fault, 30
186	186	against accidental property damage to the insured motor vehicle caused by physical contact 31
187	187	of the insured motor vehicle with another motor vehicle or other object or by upset of the 32
188	188	insured motor vehicle, if the motor vehicle accident occurs in a state, Canada, or Mexico. 33
189	189
190	190	(b) (1) In this subsection, “passenger car” means a motor vehicle that is: 34
191	191	SENATE BILL 835 5
192	192
193	193
194	194	(i) a Class A (passenger) vehicle under § 13 –912 of the 1
195	195	Transportation Article; [or] 2
196	196
197	197	(ii) a Class M (multipurpose) vehicle under § 13 –937 of the 3
198	198	Transportation Article used primarily for transporting passengers; OR 4
199	199
200	200	(III) A CLASS E (TRUCK) VEHICLE THAT IS USED P RIMARILY FOR 5
201	201	PERSONAL, HOUSEHOLD , FAMILY, OR AGRICULTURAL PURP OSES AND THAT, UNDER 6
202	202	§ 13–917 OF THE TRANSPORTATION ARTICLE, DOES NOT EXCEED A 7
203	203	THREE–QUARTER TON CAPACITY OR 7,000 POUNDS GROSS VEHICLE WEIGHT. 8
204	204
205	205	(2) THIS SUBSECTION APPLI ES TO A PASSENGER CA R THAT IS 9
206	206	RENTED, USED, OR LOANED: 10
207	207
208	208	(I) AS A REPLACEMENT VEHI CLE AS DEFINED IN § 11
209	209	18–102(A)(2)(I) OR § 18.5–102(A)(2)(I) OF THE TRANSPORTATION ARTICLE; 12
210	210
211	211	(II) UNDER A RENTAL AGREEM ENT; OR 13
212	212
213	213	(III) UNDER A PEER–TO–PEER CAR SHARING PRO GRAM 14
214	214	AGREEMENT AS DEFINED IN § 14–2101 OF THE COMMERCIAL LAW ARTICLE. 15
215	215
216	216	[(2)] (3) If a private passenger motor vehicle insurance policy issued, sold, 16
217	217	or delivered in the State includes[: 17
218	218
219	219	(i)] collision coverage under this section[,] OR COMPREHENSIVE 18
220	220	COVERAGE: 19
221	221
222	222	(I) the motor vehicles insured under that coverage shall include any 20
223	223	passenger car [that is rented or used by an insured for a period of 30 days or less under a 21
224	224	rental agreement or a peer–to–peer car sharing program agreement as otherwise defined 22
225	225	in § 14–2101 of the Commercial Law Article; or] DESCRIBED IN PARAGRAPH (2) OF THIS 23
226	226	SUBSECTION; AND 24
227	227
228	228	(ii) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION, THE 25
229	229	COLLISION COVERAGE O R comprehensive coverage[, the motor vehicles insured under 26
230	230	that coverage] shall [include] BE APPLICABLE TO any [replacement vehicle as defined 27
231	231	under § 18–102(a)(2)(i) or § 18.5–102(a)(2)(i) of the Transportation Article] PASSENGER 28
232	232	CAR DESCRIBED IN PARAGRAPH (2) OF THIS SUBSECTION IN THE SAME MANNER AND 29
233	233	AMOUNT THAT THE COVE RAGE IS APPLICABLE T O THE INSURED VEHICL ES. 30
234	234
235	235	[(3)] (4) Each insurer that provides a private passenger motor vehicle 31
236	236	insurance policy that includes collision coverage shall give the insured a separate notice 32
237	237	written in boldface type that the insured does not need a collision damage waiver or any 33 6 SENATE BILL 835
238	238
239	239
240	240	additional collision coverage when USING, renting, or peer–to–peer car sharing a passenger 1
241	241	car [for a period of 30 days or less] DESCRIBED IN PARAGRA PH (2) OF THIS SUBSECTION 2
242	242	during the term of the policy. 3
243	243
244	244	[(4)] (5) An insurer may not deny coverage to an insured for collision 4
245	245	damage to a [rental] passenger car DESCRIBED IN PARAGRAPH (2) OF THIS 5
246	246	SUBSECTION because: 6
247	247
248	248	(i) the motor vehicle accident involved an uninsured motorist; or 7
249	249
250	250	(ii) the identity of the motor vehicle causing the damage cannot be 8
251	251	ascertained. 9
252	252
253	253	(c) An insurer may offer to provide to the insured coverage for damages incurred 10
254	254	by the insured as a result of the loss of use of a rental vehicle or a shared motor vehicle that 11
255	255	sustains collision damage while rented by the insured. 12
256	256
257	257	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
258	258	October 1, 2022. 14