Florida Senate - 2016                                    SB 1380
       
       
        
       By Senator Flores
       
       37-00839-16                                           20161380__
    1                        A bill to be entitled                      
    2         An act relating to renting or leasing motor vehicles;
    3         amending s. 322.38, F.S.; providing that an owner or
    4         its affiliate must comply with certain conditions
    5         relating to insurance when renting or leasing a motor
    6         vehicle to a nonresident; requiring the owner or its
    7         affiliate to ensure that such renter or lessee is
    8         covered by insurance; authorizing the owner or its
    9         affiliate to provide coverage under certain
   10         circumstances; providing minimum liability coverage
   11         limits; providing a limit on coverage duration;
   12         specifying an owner’s liability for noncompliance;
   13         amending s. 626.321, F.S.; extending the length of a
   14         lease or rental agreement for which motor vehicle
   15         rental insurance may be issued; revising a requirement
   16         relating to a written notice provided to a lessee;
   17         providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Section 322.38, Florida Statutes, is amended to
   22  read:
   23         322.38 Renting motor vehicle to another; insurance
   24  requirements for renting or leasing to a nonresident.—
   25         (1) No person shall rent a motor vehicle to any other
   26  person unless the latter person is then duly licensed, or if a
   27  nonresident he or she shall be licensed under the laws of the
   28  state or country of his or her residence, except a nonresident
   29  whose home state or country does not require that an operator be
   30  licensed.
   31         (2) No person shall rent a motor vehicle to another until
   32  he or she has inspected the driver license of the person to whom
   33  the vehicle is to be rented, and compared and verified the
   34  signature thereon with the signature of such person written in
   35  his or her presence.
   36         (3) Every person renting a motor vehicle to another shall
   37  keep a record of the registration number of the motor vehicle so
   38  rented, the name and address of the person to whom the vehicle
   39  is rented, the number of the license of said latter person, and
   40  the date and place when and where the said license was issued.
   41  Such record shall be open to inspection by any police officer,
   42  or officer or employee of the department.
   43         (4) An owner or an affiliate of the owner engaged in the
   44  trade or business of renting or leasing motor vehicles may not
   45  rent or lease a motor vehicle to a nonresident unless all of the
   46  following apply:
   47         (a) The owner or its affiliate has verified that the
   48  nonresident or any permissive user of the motor vehicle is
   49  covered by liability insurance for damages resulting from
   50  negligence in the use of the motor vehicle. The owner or its
   51  affiliate may provide such coverage to the nonresident and may
   52  charge for such coverage if the amount of such charge is
   53  separately set forth in an agreement. The owner or its affiliate
   54  has a continuing duty to ensure that the nonresident is covered
   55  by insurance consistent with this subsection.
   56         (b) The insurance required in paragraph (a) must have
   57  minimum liability coverage limits of $100,000 per person and
   58  $300,000 per incident for bodily injury, and $50,000 for
   59  property damage.
   60         (c) Notwithstanding s. 627.7275(2)(b), the insurance may
   61  only provide coverage for a motor vehicle that is rented or
   62  leased by the nonresident for only up to 1 year.
   63         (5) An owner’s or its affiliate’s failure to comply with
   64  the requirements in subsection (4) constitutes negligent
   65  entrustment of the motor vehicle and subjects the owner to
   66  liability for damages up to $100,000 per person and $300,000 per
   67  incident for bodily injury, and up to $50,000 for property
   68  damage caused by negligence of the nonresident or permissive
   69  user in the use of the motor vehicle. This subsection does not
   70  affect the liability of the owner or an affiliate of the owner
   71  for any other negligence.
   72         Section 2. Paragraph (d) of subsection (1) of section
   73  626.321, Florida Statutes, is amended to read:
   74         626.321 Limited licenses.—
   75         (1) The department shall issue to a qualified applicant a
   76  license as agent authorized to transact a limited class of
   77  business in any of the following categories of limited lines
   78  insurance:
   79         (d) Motor vehicle rental insurance.—
   80         1. License covering only insurance of the risks set forth
   81  in this paragraph when offered, sold, or solicited with and
   82  incidental to the rental or lease of a motor vehicle and which
   83  applies only to the motor vehicle that is the subject of the
   84  lease or rental agreement and the occupants of the motor
   85  vehicle:
   86         a. Excess motor vehicle liability insurance providing
   87  coverage in excess of the standard liability limits provided by
   88  the lessor in the lessor’s lease to a person renting or leasing
   89  a motor vehicle from the licensee’s employer for liability
   90  arising in connection with the negligent operation of the leased
   91  or rented motor vehicle.
   92         b. Insurance covering the liability of the lessee to the
   93  lessor for damage to the leased or rented motor vehicle.
   94         c. Insurance covering the loss of or damage to baggage,
   95  personal effects, or travel documents of a person renting or
   96  leasing a motor vehicle.
   97         d. Insurance covering accidental personal injury or death
   98  of the lessee and any passenger who is riding or driving with
   99  the covered lessee in the leased or rented motor vehicle.
  100         2. Insurance under a motor vehicle rental insurance license
  101  may be issued only if the lease or rental agreement is for less
  102  no more than 1 year 60 days, the lessee is not provided coverage
  103  for more than 364 60 consecutive days per lease period, and the
  104  lessee is given written notice that his or her personal
  105  insurance policy providing coverage on an owned motor vehicle
  106  may provide coverage of such risks and that the purchase of the
  107  insurance is not required in connection with the lease or rental
  108  of a motor vehicle unless insurance is required under s.
  109  324.021(9)(b). If the lease is extended beyond 364 60 days, the
  110  coverage may be extended once one time only for a period not to
  111  exceed an additional 364 60 days. Insurance may be provided to
  112  the lessee as an additional insured on a policy issued to the
  113  licensee’s employer.
  114         3. The license may be issued only to the full-time salaried
  115  employee of a licensed general lines agent or to a business
  116  entity that offers motor vehicles for rent or lease if insurance
  117  sales activities authorized by the license are in connection
  118  with and incidental to the rental or lease of a motor vehicle.
  119         a. A license issued to a business entity that offers motor
  120  vehicles for rent or lease encompasses each office, branch
  121  office, employee, authorized representative located at a
  122  designated branch, or place of business making use of the
  123  entity’s business name in order to offer, solicit, and sell
  124  insurance pursuant to this paragraph.
  125         b. The application for licensure must list the name,
  126  address, and phone number for each office, branch office, or
  127  place of business that is to be covered by the license. The
  128  licensee shall notify the department of the name, address, and
  129  phone number of any new location that is to be covered by the
  130  license before the new office, branch office, or place of
  131  business engages in the sale of insurance pursuant to this
  132  paragraph. The licensee must notify the department within 30
  133  days after closing or terminating an office, branch office, or
  134  place of business. Upon receipt of the notice, the department
  135  shall delete the office, branch office, or place of business
  136  from the license.
  137         c. A licensed and appointed entity is directly responsible
  138  and accountable for all acts of the licensee’s employees.
  139         Section 3. This act shall take effect July 1, 2016.