SECTION 1. Section 31-34-7 of the General Laws in Chapter 31-34 entitled "Responsibility Of Owners Of Rental Vehicles" is hereby amended to read as follows:

31-34-7. Notification to customer regarding insurance coverage. -- (a) Whenever any car rental agency offers insurance coverage a collision damage waiver on the vehicle at an additional cost, it shall notify the lessee by providing the following language, in ten (10) point type, in all rental agreements:

"Notice:

This contract offers, for an additional charge, a collision damage waiver to cover your responsibility for damage to the vehicle. Before deciding whether to purchase the collision damage waiver, you may wish to determine whether your own automobile insurance affords you coverage for damage to the rental vehicle and the amount of the deductible under your own insurance coverage. The purchase of collision damage waiver is not mandatory under this contract.

Read the separate collision damage waiver disclosure form provision contained in this rental agreement before signing this rental agreement."

(b) The department of the attorney general shall devise a uniform collision damage waiver agreement to be used in every rental agreement, including the terms and conditions of collision damage waiver.

The following uniform collision damage waiver provision shall be contained in every rental agreement:

Notice About Liability for Damage to the Rental Car

The State of Rhode Island requires us to provide the following information about your liability for damage to the rental car and the purchase of a damage waiver.

Insurance or Credit Card Coverage

Liability for any damage to the rental vehicle may be covered by your personal insurance policy or credit agreement. Check your insurance policy or credit card agreement about coverage.

Damage Waiver Coverage

A damage waiver is not insurance coverage. You do not have to purchase the Collision Damage Waiver. You can decline it.

If you purchase a damage waiver, we will waive our right to hold you or any authorized driver liable for damage. Even if you buy the damage waiver, you and any authorized driver will remain liable for damage if any of the following apply:

(1) damage or loss caused intentionally, willfully or wantonly by an authorized driver;

(2) damage or loss occurring while an authorized driver operates the rental vehicle while legally intoxicated or under the influence of any illegal drug or chemical as defined or determined under the law of the state in which the damage occurred;

(3) damage or loss caused while an authorized driver is engaging in any speed contest;

(4) damage or loss caused while an authorized driver is using the vehicle to push or tow anything or using the vehicle to carry persons or property for hire, unless expressly authorized in the rental agreement;

(5) damage or loss incurred while an authorized driver is driving outside the United States or Canada, unless expressly authorized in the rental agreement;

(6) damage or loss incurred while the vehicle is driven, with the renter's permission or accession, by anyone other than an authorized driver;

(7) damage or loss incurred after the private passenger automobile was rented or an authorized driver was approved as a result of fraudulent information provided to the rental company; and

(8) damage or loss incurred as a result of commission of a felony by an authorized driver.

(c) In every instance where collision damage waiver coverage is purchased by the lessee, a collision damage waiver disclosure form, to be formulated by the department of attorney general by regulation, shall become part of the rental agreement and must contain the following clause above the lessee's signature:

"I acknowledge that I have received and read a copy of this notice before signing the rental agreement."

SECTION 2. This act shall take effect upon passage.