Chapter 471 |
2025 -- H 6032 SUBSTITUTE A Enacted 07/05/2025 |
A N A C T |
RELATING TO INSURANCE -- LIABILITY INSURANCE |
Introduced By: Representatives Voas, Casey, and DeSimone |
Date Introduced: March 07, 2025 |
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. |
(e) Whenever a claimant’s vehicle is damaged in an accident, the at-fault insurance |
company shall provide at its expense, a rental vehicle that is reasonably comparable in quality to |
the claimant’s damaged vehicle, and rental charges to be paid shall be based on the local retail |
prices reasonably available to consumers at the date and time a claimant rents a vehicle. |
SECTION 2. This act shall take effect upon passage. |
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LC002280/SUB A |
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