| Chapter 370 |
| 2023 -- S 1106 AS AMENDED Enacted 06/27/2023 |
| A N A C T |
| RELATING TO INSURANCE -- LIABILITY INSURANCE -- RENTAL VEHICLE COVERAGE |
Introduced By: Senator Hanna M. Gallo |
| Date Introduced: June 08, 2023 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability |
| Insurance" is hereby amended to read as follows: |
| 27-7-6. Rental vehicle coverage. |
| (a) For liability assumed under a written contract, coverage shall be provided under the |
| property damage liability section of an insured’s private passenger automobile insurance policy. |
| Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds |
| (10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days. |
| (b) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive type |
| losses. |
| (c) Whenever liability is accepted by an insurance company involving an accident that |
| results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall |
| extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved |
| party receives the total loss property damage check. |
| (d) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that a |
| claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace |
| the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To |
| establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained |
| damage, regardless of fault, requires repair, and will be out of service for the period of time |
| determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of |
| use payments shall be made up until the time the vehicle owner receives the property damage |
| payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided |
| regardless of fleet utilization. |
| SECTION 2. This act shall take effect upon passage. |
| ======== |
| LC003192 |
| ======== |