2024 -- S 3104

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LC006157

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

     

     Introduced By: Senators Gallo, Pearson, and Ciccone

     Date Introduced: May 29, 2024

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability

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Insurance" is hereby amended to read as follows:

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     27-7-6. Rental vehicle coverage.

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     (a) For liability assumed under a written contract, coverage shall be provided under the

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property damage liability section of an insured’s private passenger automobile insurance policy.

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Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds

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(10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days.

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     (b) Coverage pursuant to subsection (a) of this section shall apply to the named insured and

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drivers listed on the private passenger automobile insurance policy and/or their designee(s).

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     (b)(c) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive

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type losses.

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     (c)(d) Whenever liability is accepted by an insurance company involving an accident that

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results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall

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extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved

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party receives the total loss property damage check.

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     (d)(e) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that

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a claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace

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the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To

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establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained

 

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damage, regardless of fault, requires repair, and will be out of service for the period of time

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determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of

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use payments shall be made up until the time the vehicle owner receives the property damage

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payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided

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regardless of fleet utilization.

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     (f) Whenever a claimant’s vehicle is damaged in an accident, the at-fault insurance

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company shall provide, at its expense, a rental vehicle that is comparable in like, kind and quality

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(i.e. make, model, and trim level) to the claimant’s damaged vehicle, and rental charges to be paid

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based on the retail prices available to consumers at the date and time a claimant rents a vehicle.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

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     This act would assure that rental vehicle coverage under a private passenger automobile

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policy relating to an insured’s rental vehicle sustaining damage in an accident would extend to the

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named insured and any drivers listed on the insured’s policy and would also require that the at-fault

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insurer pay for a replacement rental vehicle that is of like quality as the insured’s damaged rental

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vehicle.

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     This act would take effect upon passage.

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