EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*sb0835*
SENATE BILL 835
C4 2lr1939
CF 2lr2583
By: Senator Beidle
Introduced and read first time: February 7, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Motor Vehicle Insurance – Comprehensive Coverage and Collision Damage 2
Waiver 3
FOR the purpose of requiring that the lessor of certain vehicles under a rental agreement 4
or a loaner agreement containing a collision damage waiver provide the waiver in a 5
specified form; requiring motor vehicle insurance policies that include collision or 6
comprehensive coverage to include coverage for certain Class E vehicles, vehicles 7
used as replacement vehicles, and vehicles rented under a peer–to–peer car sharing 8
agreement; and generally relating to motor vehicle insurance and rental and 9
replacement vehicles. 10
BY repealing and reenacting, with amendments, 11
Article – Commercial Law 12
Section 14–2101 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2021 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Insurance 17
Section 19–512 18
Annotated Code of Maryland 19
(2017 Replacement Volume and 2021 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Commercial Law 23
14–2101. 24
(a) (1) In this section the following words have the meanings indicated. 25 2 SENATE BILL 835
(2) “Car sharing period” has the meaning stated in § 19–520 of the 1
Insurance Article. 2
(3) “Collision damage waiver” means: 3
(i) With respect to a rental AGREEMENT OR LOANER agreement, 4
any contract, whether separate from or part of a rental AGREEMENT OR LOANER 5
agreement, in which the lessor agrees, for a charge, to waive all or part of any claims 6
against the lessee for damages to the rental motor vehicle during the term of the rental 7
agreement; and 8
(ii) With respect to a peer–to–peer car sharing program agreement, 9
a provision in the peer–to–peer car sharing program agreement in which it is agreed, for a 10
charge, that all or part of any claims against a shared vehicle driver for damages to a shared 11
motor vehicle during a car sharing period are waived. 12
(4) “Lessee” means any person obtaining the use of a rental motor vehicle 13
from a lessor under the terms of a rental agreement OR LOANER AGREEMENT . 14
(5) “Lessor” means any person in the business of providing rental motor 15
vehicles to the public OR LOANER VEHICLES T O CUSTOMERS . 16
(6) “LOANER AGREEMENT ” MEANS A WRITTEN AGRE EMENT SETTING 17
FORTH THE TERMS AND CONDITIONS GOV ERNING THE USE OF A LOANER VEHICLE 18
BY A LESSEE FOR A PE RIOD OF LESS THAN 180 DAYS. 19
(7) “LOANER VEHICLE ” MEANS A PASSENGER CA R LOANED TO A 20
CUSTOMER OF A LESSOR UNDER A LOANER AGREE MENT. 21
[(6)] (8) “Passenger car” means any motor vehicle that is: 22
(i) A Class A (passenger) vehicle under § 13 –912 of the 23
Transportation Article; 24
(ii) A Class M (multipurpose) vehicle under § 13 –937 of the 25
Transportation Article if the vehicle is used primarily for transporting passengers; or 26
(iii) A Class E (truck) vehicle that is used primarily for personal, 27
household, family, or agricultural purposes and that, under § 13–917 of the Transportation 28
Article, does not exceed a three–quarter ton capacity or 7,000 pounds gross vehicle weight. 29
[(7)] (9) “Peer–to–peer car sharing program agreement” has the meaning 30
stated in § 19–520 of the Insurance Article. 31
SENATE BILL 835 3
[(8)] (10) “Rental agreement” means a written agreement setting forth the 1
terms and conditions governing the use of a rental motor vehicle by a lessee for a period of 2
less than 180 days. 3
[(9)] (11) “Rental motor vehicle” means a passenger car which, on 4
execution of a rental agreement, is made available to a lessee for the lessee’s use. 5
(12) “REPLACEMENT VEHICLE ” HAS THE MEANING STAT ED IN § 6
18–102(A)(2)(I) OR § 18.5–102(A)(2)(I) OF THE TRANSPORTATION ARTICLE. 7
[(10)] (13) “Shared motor vehicle” has the meaning stated in § 19–520 of the 8
Insurance Article. 9
[(11)] (14) “Shared vehicle driver” has the meaning stated in § 19–520 of the 10
Insurance Article. 11
(b) The Division shall develop a form for collision damage waivers for lessors and 12
for peer–to–peer car sharing programs, and shall make it available to all lessors and 13
peer–to–peer car sharing programs in the State. 14
(c) The form shall meet the requirements specified in subsection (e) of this 15
section. 16
(d) (1) A lessor may not deliver or issue for delivery in this State a rental motor 17
vehicle agreement OR LOANER AGREEMENT containing a collision damage waiver, unless 18
the lessor uses a [separate] collision damage waiver form provided by the Division that 19
meets the requirements specified in subsection (e) of this section. 20
(2) A peer–to–peer car sharing program may not deliver or issue for 21
delivery in the State a peer–to–peer car sharing program agreement containing a collision 22
damage waiver, unless the peer–to–peer car sharing program uses a [separate] collision 23
damage waiver form provided by the Division that meets the requirements specified in 24
subsection (e) of this section. 25
(e) The collision damage waiver form shall contain the following requirements: 26
(1) The collision damage waiver shall be understandable and written in 27
simple and readable plain language; 28
(2) The terms of the collision damage waiver, including, but not limited to, 29
any conditions or exclusions applicable to the collision damage waiver, shall be prominently 30
displayed; 31
(3) All restrictions, conditions, or provisions in, or endorsed on, the collision 32
damage waiver are PROMINENTLY DISPLAYE D IN ANY ELECTRONIC FORMS OR printed 33
in type at least as large as Brevier or 10 point type; 34 4 SENATE BILL 835
(4) The collision damage waiver shall include a statement of the total 1
charge for the anticipated rental period, LOANER PERIOD , or car sharing period or the 2
anticipated total daily charge; 3
(5) The agreement containing the collision damage waiver shall display the 4
following notice PROMINENTLY ON ANY E LECTRONIC FORMS AND on the face of [the] A 5
WRITTEN agreement, IF ANY, set apart and in boldface type, and in type at least as large 6
as 10 point type: 7
“Notice: 8
This contract offers, for an additional charge, a collision damage waiver to cover your 9
responsibility for damage to the vehicle. Before deciding whether to purchase the collision 10
damage waiver, you may wish to determine whether your own automobile insurance affords 11
you coverage for damage to the rental vehicle, LOANER VEHICLE , or shared motor vehicle 12
and the amount of the deductible under your own insurance coverage. The purchase of this 13
collision damage waiver is not mandatory and may be waived. Maryland law requires that 14
all Maryland residents’ insurance policies with collision coverage OR COMPREHENSIVE 15
COVERAGE automatically extend that collision coverage OR COMPREHENSIVE 16
COVERAGE to passenger cars rented, USED AS REPLACEMENT VEHICLES, OR USED AS 17
A SHARED MOTOR VEHIC LES or motor vehicles shared by the insureds named in the policy 18
[for a period of 30 days or less].”; and 19
(6) Any additional information that the Division considers reasonable and 20
necessary to carry out the provisions of this subtitle. 21
(f) A failure by a lessor OR PEER–TO–PEER CAR SHARING PRO GRAM to comply 22
with subsection (d) of this section is an unfair, ABUSIVE, or deceptive trade practice within 23
the meaning of Title 13, Subtitle 3 of this article. 24
Article – Insurance 25
19–512. 26
(a) (1) Each insurer that issues, sells, or delivers a motor vehicle insurance 27
policy in the State shall offer collision coverage for damage to insured motor vehicles subject 28
to deductibles of $50 to $250 in $50 increments. 29
(2) Collision coverage shall provide insurance, without regard to fault, 30
against accidental property damage to the insured motor vehicle caused by physical contact 31
of the insured motor vehicle with another motor vehicle or other object or by upset of the 32
insured motor vehicle, if the motor vehicle accident occurs in a state, Canada, or Mexico. 33
(b) (1) In this subsection, “passenger car” means a motor vehicle that is: 34
SENATE BILL 835 5
(i) a Class A (passenger) vehicle under § 13 –912 of the 1
Transportation Article; [or] 2
(ii) a Class M (multipurpose) vehicle under § 13 –937 of the 3
Transportation Article used primarily for transporting passengers; OR 4
(III) A CLASS E (TRUCK) VEHICLE THAT IS USED P RIMARILY FOR 5
PERSONAL, HOUSEHOLD , FAMILY, OR AGRICULTURAL PURP OSES AND THAT, UNDER 6
§ 13–917 OF THE TRANSPORTATION ARTICLE, DOES NOT EXCEED A 7
THREE–QUARTER TON CAPACITY OR 7,000 POUNDS GROSS VEHICLE WEIGHT. 8
(2) THIS SUBSECTION APPLI ES TO A PASSENGER CA R THAT IS 9
RENTED, USED, OR LOANED: 10
(I) AS A REPLACEMENT VEHI CLE AS DEFINED IN § 11
18–102(A)(2)(I) OR § 18.5–102(A)(2)(I) OF THE TRANSPORTATION ARTICLE; 12
(II) UNDER A RENTAL AGREEM ENT; OR 13
(III) UNDER A PEER–TO–PEER CAR SHARING PRO GRAM 14
AGREEMENT AS DEFINED IN § 14–2101 OF THE COMMERCIAL LAW ARTICLE. 15
[(2)] (3) If a private passenger motor vehicle insurance policy issued, sold, 16
or delivered in the State includes[: 17
(i)] collision coverage under this section[,] OR COMPREHENSIVE 18
COVERAGE: 19
(I) the motor vehicles insured under that coverage shall include any 20
passenger car [that is rented or used by an insured for a period of 30 days or less under a 21
rental agreement or a peer–to–peer car sharing program agreement as otherwise defined 22
in § 14–2101 of the Commercial Law Article; or] DESCRIBED IN PARAGRAPH (2) OF THIS 23
SUBSECTION; AND 24
(ii) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION, THE 25
COLLISION COVERAGE O R comprehensive coverage[, the motor vehicles insured under 26
that coverage] shall [include] BE APPLICABLE TO any [replacement vehicle as defined 27
under § 18–102(a)(2)(i) or § 18.5–102(a)(2)(i) of the Transportation Article] PASSENGER 28
CAR DESCRIBED IN PARAGRAPH (2) OF THIS SUBSECTION IN THE SAME MANNER AND 29
AMOUNT THAT THE COVE RAGE IS APPLICABLE T O THE INSURED VEHICL ES. 30
[(3)] (4) Each insurer that provides a private passenger motor vehicle 31
insurance policy that includes collision coverage shall give the insured a separate notice 32
written in boldface type that the insured does not need a collision damage waiver or any 33 6 SENATE BILL 835
additional collision coverage when USING, renting, or peer–to–peer car sharing a passenger 1
car [for a period of 30 days or less] DESCRIBED IN PARAGRA PH (2) OF THIS SUBSECTION 2
during the term of the policy. 3
[(4)] (5) An insurer may not deny coverage to an insured for collision 4
damage to a [rental] passenger car DESCRIBED IN PARAGRAPH (2) OF THIS 5
SUBSECTION because: 6
(i) the motor vehicle accident involved an uninsured motorist; or 7
(ii) the identity of the motor vehicle causing the damage cannot be 8
ascertained. 9
(c) An insurer may offer to provide to the insured coverage for damages incurred 10
by the insured as a result of the loss of use of a rental vehicle or a shared motor vehicle that 11
sustains collision damage while rented by the insured. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2022. 14