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 | |
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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: | |
1 | SECTION 1. Section 27-7-6 of the General Laws in Chapter 27-7 entitled "Liability |
2 | Insurance" is hereby amended to read as follows: |
3 | 27-7-6. Rental vehicle coverage. |
4 | (a) For liability assumed under a written contract, coverage shall be provided under the |
5 | property damage liability section of an insured’s private passenger automobile insurance policy. |
6 | Property damage coverage shall extend to a rented motor vehicle, under ten thousand pounds |
7 | (10,000 lbs.), without regard to negligence for a period not to exceed sixty (60) consecutive days. |
8 | (b) Coverage pursuant to subsection (a) of this section shall apply to the named insured and |
9 | drivers listed on the private passenger automobile insurance policy and/or their designee(s). |
10 | (b)(c) Coverage pursuant to subsection (a) shall apply to all collision and comprehensive |
11 | type losses. |
12 | (c)(d) Whenever liability is accepted by an insurance company involving an accident that |
13 | results in their insured’s causing a total loss of the other party’s vehicle, the at-fault carrier shall |
14 | extend coverage for a rental vehicle for not less than an additional seven (7) days after the aggrieved |
15 | party receives the total loss property damage check. |
16 | (d)(e) Coverage shall be provided for loss of use of the rental motor vehicle; provided, that |
17 | a claim for loss of use of a rental vehicle shall be limited to the reasonable time to repair or replace |
18 | the rental vehicle, and shall be no less than the daily rental rate set forth in the rental agreement. To |
19 | establish loss of use, the rental car company shall demonstrate that the rental vehicle sustained |
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1 | damage, regardless of fault, requires repair, and will be out of service for the period of time |
2 | determined by a Rhode Island licensed auto appraiser or adjuster. In the case of a total loss, loss of |
3 | use payments shall be made up until the time the vehicle owner receives the property damage |
4 | payment for the total loss. Coverage for loss of use of a rented motor vehicle shall be provided |
5 | regardless of fleet utilization. |
6 | (f) Whenever a claimant’s vehicle is damaged in an accident, the at-fault insurance |
7 | company shall provide, at its expense, a rental vehicle that is comparable in like, kind and quality |
8 | (i.e. make, model, and trim level) to the claimant’s damaged vehicle, and rental charges to be paid |
9 | based on the retail prices available to consumers at the date and time a claimant rents a vehicle. |
10 | 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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1 | This act would assure that rental vehicle coverage under a private passenger automobile |
2 | policy relating to an insured’s rental vehicle sustaining damage in an accident would extend to the |
3 | named insured and any drivers listed on the insured’s policy and would also require that the at-fault |
4 | insurer pay for a replacement rental vehicle that is of like quality as the insured’s damaged rental |
5 | vehicle. |
6 | This act would take effect upon passage. |
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