HB 1289

1
A bill to be entitled
2An act relating to motor vehicle short-term rental or
3lease insurance; amending s. 324.021, F.S.; requiring
4lessees under certain motor vehicle rental or lease
5agreements to obtain certain liability insurance;
6specifying minimum insurance requirements for motor
7vehicles rented or leased for less than a single year;
8providing requirements; prohibiting a lessor from leasing
9to a lessee without having such insurance; authorizing
10certain lessors to offer and sell certain insurance;
11authorizing such lessors to charge a fee under certain
12circumstances; specifying absence of lessor liability
13under certain circumstances; providing application;
14providing an effective date.
15
16Be It Enacted by the Legislature of the State of Florida:
17
18     Section 1.  Paragraph (c) of subsection (9) of section
19324.021, Florida Statutes, is amended to read:
20     324.021  Definitions; minimum insurance required.--The
21following words and phrases when used in this chapter shall, for
22the purpose of this chapter, have the meanings respectively
23ascribed to them in this section, except in those instances
24where 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.
28do not apply to an owner of motor vehicles that are used for
29commercial activity in the owner's ordinary course of business,
30other than a rental company that rents or leases motor vehicles.
31For purposes of this paragraph, the term "rental company"
32includes only an entity that is engaged in the business of
33renting or leasing motor vehicles to the general public and that
34rents or leases a majority of its motor vehicles to persons with
35no direct or indirect affiliation with the rental company. The
36term also includes a motor vehicle dealer that provides
37temporary replacement vehicles to its customers for up to 10
38days. The term "rental company" also includes:
39     a.  A related rental or leasing company that is a
40subsidiary of the same parent company as that of the renting or
41leasing company that rented or leased the vehicle.
42     b.  The holder of a motor vehicle title or an equity
43interest in a motor vehicle title if the title or equity
44interest is held pursuant to or to facilitate an asset-backed
45securitization of a fleet of motor vehicles used solely in the
46business of renting or leasing motor vehicles to the general
47public and under the dominion and control of a rental company,
48as described in this subparagraph, in the operation of such
49rental company's business.
50     2.  Furthermore, with respect to commercial motor vehicles
51as defined in s. 627.732, the limits on liability in
52subparagraphs (b)2. and 3. do not apply if, at the time of the
53incident, the commercial motor vehicle is being used in the
54transportation of materials found to be hazardous for the
55purposes of the Hazardous Materials Transportation Authorization
56Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is
57required pursuant to such act to carry placards warning others
58of the hazardous cargo, unless at the time of lease or rental
59either:
60     a.  The lessee indicates in writing that the vehicle will
61not be used to transport materials found to be hazardous for the
62purposes of the Hazardous Materials Transportation Authorization
63Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
64     b.  The lessee or other operator of the commercial motor
65vehicle 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
68vehicle for a period of less than 1 year shall obtain motor
69vehicle liability insurance covering the lessee and all
70permissive users of the motor vehicle with limits of $100,000
71per person and $300,000 per incident for bodily injury liability
72and $50,000 for property damage liability arising out of the use
73of the motor vehicle and motor vehicle liability insurance
74covering economic damages in excess of those limits with a limit
75of $500,000 for combined bodily injury liability and property
76damage liability arising out of the use of the motor vehicle. A
77lessor may not enter into such an agreement with a lessee if the
78lessee has not obtained such insurance. A lessor under such an
79agreement shall ensure that the lessee has obtained such
80coverage and, if appropriately licensed under s. 626.321(1)(d),
81may offer and sell primary motor vehicle liability insurance
82meeting the requirements of this subparagraph together with and
83incidental to the agreement to rent or lease the motor vehicle
84and may charge a fee not to exceed 35 percent of the premium for
85each policy sold if the lessor is authorized by the insurer to
86bind the insurance and to act as the insurer's agent for the
87purposes of receiving payment of the premium and adjusting
88claims made under such insurance. A lessor that complies with
89this subparagraph by selling insurance as provided under this
90subparagraph is immune from claims based solely upon the
91dangerous instrumentality doctrine for the use, operation, or
92ownership of the insured motor vehicle.
93     Section 2.  This act shall take effect July 1, 2009, and
94shall apply to any agreement to rent or lease a motor vehicle
95for a period of less than 1 year commencing on or after July 1,
962009.


CODING: Words stricken are deletions; words underlined are additions.