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California Law (Last Updated: March 4, 2014) |
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Insurance Code - INS |
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Division 1. GENERAL RULES GOVERNING INSURANCE |
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Part 2. THE BUSINESS OF INSURANCE |
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Chapter 5. Production Agencies |
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ARTICLE 16.6. Rental Car Agents |
Section 1758.86.
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A rental car agent shall not sell insurance pursuant to this article unless all of the following conditions are satisfied:
(a) The rental period of the rental agreement does not exceed 30 consecutive days, except for any renewals or extension of the original rental period.
(b) The rental car agent provides brochures or other written materials to the prospective renter that do all of the following:
(1) Summarize the material terms and conditions of coverage offered to renters, including the identity of the insurer.
(2) Describe the process for filing a claim, including a toll-free telephone number to report a claim.
(3) Disclose any additional information on the price, benefits, exclusions, conditions, or other limitations of those policies that the commissioner may by rule prescribe.
(4) Provide the licensee's name, address, telephone number, and license number, as well as the availability of the department's toll-free consumer hotline.
(c) The rental car agent or its endorsee makes all of the following disclosures to the renter, which shall be acknowledged in writing by the renter, or displayed by clear and conspicuous signs that are posted at every location where rental agreements are executed, such as the counter where the renter signs the rental agreement:
(1) That the purchase by the renter of the kinds of insurance prescribed in this article is not required in order to rent a vehicle.
(2) That the insurance policies offered by the rental car agent may provide a duplication of coverage already provided by a renter's personal automobile insurance policy or by another source of coverage.
(3) That the endorsee on the rental car agent's license is not qualified or authorized to evaluate the adequacy of the purchaser's existing insurance coverages.
(d) Evidence of coverage is stated on the face of the rental agreement or evidence of coverages provided to every renter who elects to purchase that coverage is indicated to the renter.
(e) The insurance is provided under an individual policy issued to the purchaser, or under a group, or master policy issued to an organization licensed as a rental car agent by an insurer authorized to transact the applicable kinds or types of insurance in this state.