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| 5 | 5 | | 2025 -- S 0985 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC002651 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO INSURANCE -- LIABILITY INSURANCE -- RENTAL VEHICLE |
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| 16 | 16 | | COVERAGE |
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| 17 | 17 | | Introduced By: Senators Britto, Thompson, and Appollonio |
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| 18 | 18 | | Date Introduced: April 16, 2025 |
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| 19 | 19 | | Referred To: Senate Judiciary |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability 1 |
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| 24 | 24 | | Insurance" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 27-7-6. Rental vehicle coverage. 3 |
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| 26 | 26 | | (a)(1) For liability assumed under a written contract, coverage shall be provided under the 4 |
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| 27 | 27 | | property damage liability section of an insured’s private passenger automobile insurance policy. 5 |
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| 28 | 28 | | Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds 6 |
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| 29 | 29 | | (10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days. 7 |
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| 30 | 30 | | (2) Coverage under subsection (a)(1) of this section shall apply to the named insured and 8 |
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| 31 | 31 | | driver(s) listed on the private passenger automobile insurance policy and/or their designee(s), 9 |
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| 32 | 32 | | unless the designee driver is specifically excluded from the policy. 10 |
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| 33 | 33 | | (b) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive type 11 |
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| 34 | 34 | | losses. 12 |
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| 35 | 35 | | (c) Whenever liability is accepted by an insurance company involving an accident that 13 |
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| 36 | 36 | | results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall 14 |
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| 37 | 37 | | extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved 15 |
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| 38 | 38 | | party receives the total loss property damage check. 16 |
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| 39 | 39 | | (d) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that a 17 |
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| 40 | 40 | | claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC002651 - Page 2 of 3 |
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| 44 | 44 | | the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To 1 |
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| 45 | 45 | | establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained 2 |
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| 46 | 46 | | damage, regardless of fault, requires repair, and will be out of service for the period of time 3 |
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| 47 | 47 | | determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of 4 |
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| 48 | 48 | | use payments shall be made up until the time the vehicle owner receives the property damage 5 |
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| 49 | 49 | | payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided 6 |
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| 50 | 50 | | regardless of fleet utilization. 7 |
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| 51 | 51 | | SECTION 2. This act shall take effect upon passage. 8 |
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| 52 | 52 | | ======== |
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| 53 | 53 | | LC002651 |
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| 54 | 54 | | ======== |
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| 55 | 55 | | |
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| 56 | 56 | | |
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| 57 | 57 | | LC002651 - Page 3 of 3 |
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| 58 | 58 | | EXPLANATION |
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| 59 | 59 | | BY THE LEGISLATIVE COUNCIL |
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| 60 | 60 | | OF |
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| 61 | 61 | | A N A C T |
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| 62 | 62 | | RELATING TO INSURANCE -- LIABILITY INSURANCE -- RENTAL VEHICLE |
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| 63 | 63 | | COVERAGE |
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| 64 | 64 | | *** |
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| 65 | 65 | | This act would restrict private vehicle property damage insurance coverage for a rental 1 |
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| 66 | 66 | | passenger vehicle, to the named insured and drivers listed on that private policy, unless the 2 |
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| 67 | 67 | | designated driver is specifically excluded. 3 |
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| 68 | 68 | | This act would take effect upon passage. 4 |
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| 69 | 69 | | ======== |
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| 70 | 70 | | LC002651 |
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| 71 | 71 | | ======== |
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| 72 | 72 | | |
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