| 1 | A bill to be entitled |
| 2 | An act relating to motor vehicle short-term rental or |
| 3 | lease insurance; amending s. 324.021, F.S.; requiring |
| 4 | lessees under certain motor vehicle rental or lease |
| 5 | agreements to obtain certain liability insurance; |
| 6 | specifying minimum insurance requirements for motor |
| 7 | vehicles rented or leased for less than a single year; |
| 8 | providing requirements; prohibiting a lessor from leasing |
| 9 | to a lessee without having such insurance; authorizing |
| 10 | certain lessors to offer and sell certain insurance; |
| 11 | authorizing such lessors to charge a fee under certain |
| 12 | circumstances; specifying absence of lessor liability |
| 13 | under certain circumstances; providing application; |
| 14 | providing an effective date. |
| 15 |
|
| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
|
| 18 | Section 1. Paragraph (c) of subsection (9) of section |
| 19 | 324.021, Florida Statutes, is amended to read: |
| 20 | 324.021 Definitions; minimum insurance required.--The |
| 21 | following words and phrases when used in this chapter shall, for |
| 22 | the purpose of this chapter, have the meanings respectively |
| 23 | ascribed to them in this section, except in those instances |
| 24 | where the context clearly indicates a different meaning: |
| 25 | (9) OWNER; OWNER/LESSOR.-- |
| 26 | (c) Application.-- |
| 27 | 1. The limits on liability in subparagraphs (b)2. and 3. |
| 28 | do not apply to an owner of motor vehicles that are used for |
| 29 | commercial activity in the owner's ordinary course of business, |
| 30 | other than a rental company that rents or leases motor vehicles. |
| 31 | For purposes of this paragraph, the term "rental company" |
| 32 | includes only an entity that is engaged in the business of |
| 33 | renting or leasing motor vehicles to the general public and that |
| 34 | rents or leases a majority of its motor vehicles to persons with |
| 35 | no direct or indirect affiliation with the rental company. The |
| 36 | term also includes a motor vehicle dealer that provides |
| 37 | temporary replacement vehicles to its customers for up to 10 |
| 38 | days. The term "rental company" also includes: |
| 39 | a. A related rental or leasing company that is a |
| 40 | subsidiary of the same parent company as that of the renting or |
| 41 | leasing company that rented or leased the vehicle. |
| 42 | b. The holder of a motor vehicle title or an equity |
| 43 | interest in a motor vehicle title if the title or equity |
| 44 | interest is held pursuant to or to facilitate an asset-backed |
| 45 | securitization of a fleet of motor vehicles used solely in the |
| 46 | business of renting or leasing motor vehicles to the general |
| 47 | public and under the dominion and control of a rental company, |
| 48 | as described in this subparagraph, in the operation of such |
| 49 | rental company's business. |
| 50 | 2. Furthermore, with respect to commercial motor vehicles |
| 51 | as defined in s. 627.732, the limits on liability in |
| 52 | subparagraphs (b)2. and 3. do not apply if, at the time of the |
| 53 | incident, the commercial motor vehicle is being used in the |
| 54 | transportation of materials found to be hazardous for the |
| 55 | purposes of the Hazardous Materials Transportation Authorization |
| 56 | Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is |
| 57 | required pursuant to such act to carry placards warning others |
| 58 | of the hazardous cargo, unless at the time of lease or rental |
| 59 | either: |
| 60 | a. The lessee indicates in writing that the vehicle will |
| 61 | not be used to transport materials found to be hazardous for the |
| 62 | purposes of the Hazardous Materials Transportation Authorization |
| 63 | Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or |
| 64 | b. The lessee or other operator of the commercial motor |
| 65 | vehicle has in effect insurance with limits of at least |
| 66 | $5,000,000 combined property damage and bodily injury liability. |
| 67 | 3. The lessee under any agreement to rent or lease a motor |
| 68 | vehicle for a period of less than 1 year shall obtain motor |
| 69 | vehicle liability insurance covering the lessee and all |
| 70 | permissive users of the motor vehicle with limits of $100,000 |
| 71 | per person and $300,000 per incident for bodily injury liability |
| 72 | and $50,000 for property damage liability arising out of the use |
| 73 | of the motor vehicle and motor vehicle liability insurance |
| 74 | covering economic damages in excess of those limits with a limit |
| 75 | of $500,000 for combined bodily injury liability and property |
| 76 | damage liability arising out of the use of the motor vehicle. A |
| 77 | lessor may not enter into such an agreement with a lessee if the |
| 78 | lessee has not obtained such insurance. A lessor under such an |
| 79 | agreement shall ensure that the lessee has obtained such |
| 80 | coverage and, if appropriately licensed under s. 626.321(1)(d), |
| 81 | may offer and sell primary motor vehicle liability insurance |
| 82 | meeting the requirements of this subparagraph together with and |
| 83 | incidental to the agreement to rent or lease the motor vehicle |
| 84 | and may charge a fee not to exceed 35 percent of the premium for |
| 85 | each policy sold if the lessor is authorized by the insurer to |
| 86 | bind the insurance and to act as the insurer's agent for the |
| 87 | purposes of receiving payment of the premium and adjusting |
| 88 | claims made under such insurance. A lessor that complies with |
| 89 | this subparagraph by selling insurance as provided under this |
| 90 | subparagraph is immune from claims based solely upon the |
| 91 | dangerous instrumentality doctrine for the use, operation, or |
| 92 | ownership of the insured motor vehicle. |
| 93 | Section 2. This act shall take effect July 1, 2009, and |
| 94 | shall apply to any agreement to rent or lease a motor vehicle |
| 95 | for a period of less than 1 year commencing on or after July 1, |
| 96 | 2009. |