SECTION 1. This act shall be known and may be cited as the "Private Vehicle Rental Act".
SECTION 2. Chapter 90 of the General Laws, as appearing in the 2016 official edition, is hereby amended by adding the following section:
Section 65. Insurance Requirements.
A Private Vehicle Rental Program Provider shall maintain insurance pursuant to sections 230 to 233, inclusive, of Chapter 175 of the General Laws.
SECTION 3. Said Chapter 175 of the General Laws is hereby amended by adding after section 229 the following sections:
Section 230. Definitions. As used in sections 230 to 233, inclusive, the following words shall have the following meanings:
(a) "Program Rental Period" or “Rental Period” means the period of time when a Renter takes possession and control of a Vehicle available for Private Vehicle Rental, includes the time when such Vehicle is under the control of the Program Provider, and continues until the following conditions are met: (1) The Vehicle is: (i) retrieved by the Owner or Owner’s designee; (ii) returned to a location agreed upon by the Owner and the Renter; or (iii) returned to a location designated by the Program Provider; and (2) One of the following occurs: (i) the time period established through the Program expires; (ii) the Renter verifiably communicates to the Program Provider or Owner that they deem the Rental Period terminated; or (iii) the Owner or the Program Provider takes possession and control of the Vehicle.
(b) "Group policy" means an insurance policy issued pursuant to section 4 of this article.
(c) Terms not otherwise defined by this section shall have the meanings contained in section 63 of chapter 90.
Section 231. Requirements and limitations for Private Vehicle Rental
(a) No personal passenger motor vehicle insured, or subject to being insured, by its registered owner pursuant to sections 34A – 34R of chapter 90 and sections 113A – 113U of chapter 175 shall be classified as a commercial vehicle, for-hire vehicle, permissive use vehicle, taxicab or livery solely because its registered owner allows it to be used for Private Vehicle Rental, as long as all of the following circumstances apply: (1) the Private Vehicle Rental is compliant with a Personal Vehicle Rental Program as provided for in this article; (2) the Owner, or Program Provider, does not knowingly place the Vehicle, or allow the Vehicle to be placed, into use as a commercial vehicle, or as a vehicle for hire by a Private Vehicle Renter, while the Vehicle is utilized for Private Vehicle Rental; and (3) the number of personal passenger motor vehicles a single individual, or multiple individuals residing in the same household, has enrolled in any Private Vehicle Rental Program, or combination of Private Vehicle Rental Programs, does not exceed four.
(b) A personal passenger motor vehicle liability insurance company may cancel or refuse coverage to an Owner solely due to the number of vehicles enrolled in Private Vehicle Rental, if the number of vehicles enrolled in any Private Rental Program, or combination of Programs, either by the insured, or in combination with other household residents, exceeds four.
(c) A Program Provider shall, for each Vehicle of which it facilitates the Rental, do all of the following: (1) During the Rental Period for a Vehicle engaged in Private Vehicle Rental, procure group insurance coverage for each Vehicle and authorized driver of any such Vehicle. Such insurance shall, at a minimum, provide for each Vehicle: (i) liability coverage at least equal to the minimum financial responsibility requirements for personal passenger motor vehicles of the state in which the Vehicle is registered; and (ii) property and casualty coverage including comprehensive and collision protection, as further described in subsections (d) and (e) of section 233 of chapter 175; (2) Provide the Registered Owner of the Vehicle engaged in Private Vehicle Rental with suitable proof of compliance with the insurance requirements of this section and the requirements of section 34B of chapter 90, a copy of which shall be maintained in the Vehicle by the Owner during any time when the Vehicle is operated by a Renter, or person other than the Owner, pursuant to a Private Vehicle Rental Program; (3) Not permit the Vehicle to be operated for commercial use or as a vehicle for hire by a Renter while engaged in Private Vehicle Rental; (4) Provide each Renter, for each rental transaction under the Program, at the time of each rental: (i) access to an insurance identification card approved for use by the state in which the Vehicle is registered; or other documentation, able to be carried in the Vehicle at all times during the Rental Period, that proves the insurance coverage referred to in paragraph (1) is in full force and effect; and (ii) the means, via a toll-free number, email address or such other form of communication with a law enforcement police officer, a representative of the department of motor vehicles or other officer of the state in which the Vehicle is registered or any political subdivision thereof, to confirm in real time that insurance coverage provided for in paragraph (1) is in effect; (5) Require that every Vehicle made available for Private Vehicle Rental comply with the minimum financial responsibility requirements of the state in which the Vehicle is registered; (6) Require that every vehicle used in a Program is a Private Motor Vehicle; (7) Facilitate the installation, operation and maintenance of its own signage and computer hardware and software to the extent necessary for the Vehicle to be used in the Program; (8) Indemnify and hold harmless the Owner for the cost of damage or theft of equipment installed by the Program Provider under paragraph (7) of this subsection for any damage caused to the Vehicle by the installation, operation or maintenance of such equipment; (9) Collect, maintain and make available, to any government agency as required by law, at the cost of the Program, the Owner's primary motor vehicle liability insurer; the Renter's primary automobile, excess, or umbrella insurer; and the following information pertaining to incidents that occurred during any Rental Period: (i) verifiable records of the Rental Period for each Vehicle, and (to the extent electronic equipment for monitoring the following information is installed in the Vehicle) verifiable electronic records of the time, initial and final locations of the Vehicle, and (to the extent mileage is collected) miles driven; and (ii) in instances where an insurance claim has been filed with a group insurer, any and all information relevant to the claim, including payments by the Program Provider concerning accidents, damages and injuries; (10) Ensure that the Owner and Renter are given notice prior to the first use or operation of a Private Motor Vehicle pursuant to enrollment in a Private Vehicle Rental Program, that: (i) during the Rental Period, the Owner's insurer may exclude any and all coverage afforded to its policy and such Owner's insurer shall have the right to notify an insured that it shall have no duty to defend or indemnify any person or organization for liability for any loss that occurs during the Rental Period; and (ii) the group policy and physical damage coverage contract may not provide coverage outside of the Rental Period; and (11) Comply with all statutory and regulatory obligations for private passenger motor vehicle rental, including, but not limited to compliance with the provisions of section 2 of chapter 64I; section 11 of chapter 90; section 12 of chapter 90; section 20E of chapter 90; section 32C of chapter 90; section 32D of chapter 90; section 32E1/2 of chapter 90; section 32E3/4 of chapter 90; section 32E7/8 of chapter 90; section 33 of chapter 90; section 34 of chapter 90; and section 92A of chapter 266.
Section 232. Liability provisions.
(a) Notwithstanding any other provision of law or any provision in a private passenger motor vehicle owner's automobile insurance policy, in the event of a loss or injury that occurs during the Rental Period or while the Private Motor Vehicle is otherwise under the control of a Private Vehicle Rental Program Provider, the Program Provider shall be deemed the owner of the vehicle under section 85A of chapter 231 and such other statutes that may impose liability upon an owner of a private passenger motor vehicle solely based on such ownership as if the Program Provider were the registered owner of the vehicle. The Program Provider shall retain such liability irrespective of a lapse in the group policy or any insurance policy under which the Program is insured, or whether such liability is covered under the group policy or any insurance policy under which the Program is insured.
(b) A Program Provider's group policy shall provide coverage during the Rental Period for an Owner’s Private Motor Vehicle.
(c) The insurer or insurers providing group liability insurance to the Private Vehicle Rental Program pursuant to subsection (a) of section 233 and group physical damage insurance to the Private Vehicle Rental Program pursuant to subsection (d) of section 233 shall assume liability for a claim in which a dispute exists regarding who was in control of the Vehicle when the loss occurred giving rise to the claim, and the Owner's private passenger motor vehicle insurer shall indemnify the Private Vehicle Rental Program's group insurer or insurers, to the extent of its obligation under the applicable insurance policy, if it is determined that the Vehicle's Owner was in control of the Vehicle at the time of the loss. The Program shall notify the Owner's insurer of any such dispute within ten business days of becoming aware that such a dispute exists.
(d) In the event that the Owner of the Vehicle or its insurer is named as a defendant in a civil action for a loss or injury that occurs during any time within the Rental Period, or otherwise under the control of a Private Vehicle Rental Program, the Program's group liability insurance insurer under subsection (a) of section 233 shall have the duty to defend and indemnify the Vehicle's Owner and the Owner's insurer, subject to the provisions of subsection (c) of this section.
(e) Notwithstanding any other provision of law to the contrary, while a Private Motor Vehicle is used by a person other than its Owner, pursuant to Private Vehicle Rental facilitated through a Private Vehicle Rental Program, all of the following shall apply: (1) the insurer of that Vehicle may exclude any and all coverage for liability, uninsured, underinsured, collision physical damage and comprehensive physical damage benefits and first-party benefits that may otherwise be afforded pursuant to its policy; and (2) the primary and excess insurer or insurers of the Owner of the Private Motor Vehicle used in a Private Vehicle Rental Program shall have the right to notify the insured that it has no duty to defend or indemnify any person or organization for liability for any loss that occurs during the Rental Period of the Vehicle in a Private Vehicle Rental Program.
(f) No Owner's policy of insurance shall be cancelled, voided, terminated, rescinded, non-renewed, solely on the basis that the Private Motor Vehicle has been made available for Private Vehicle Rental pursuant to a Private Vehicle Rental Program that is in compliance with the provisions of this section. Provided, however that: (1) the provisions of this section shall not pertain to cancellations in accordance with the provisions of section 113D of chapter 175; (2) an insurer may refuse to enroll a vehicle in a usage-based insurance program, where such usage-based insurance program continually monitors usage electronically to determine acceleration, braking, miles driven and other indicia of driving behavior, if that vehicle is used in a Private Vehicle Rental Program under this article; and (3) an insurer may cancel or non-renew a policy that insures a vehicle used in the Private Vehicle Rental Program if that vehicle is enrolled in such a usage-based insurance program. The insurer must immediately offer the insured a new policy with the same coverages and pre-existing rates, but without enrollment in the usage-based insurance program.
Section 233. Group insurance for Private Vehicle Rental Programs.
(a) An insurer which is authorized or eligible to do business in the Commonwealth may issue, or issue for delivery in this Commonwealth, a group policy of liability and property and casualty insurance to a Private Vehicle Rental Program Provider to insure the Private Vehicle Rental Program, and the Renters, authorized drivers and occupants of the Private Motor Vehicle, as well as the Program Provider, its agents, employees, directors, officers and assigns; and (1) that such policy shall provide first party coverage, liability, property, comprehensive, collision, and uninsured/underinsured motorist coverage for the Private Motor Vehicle and its authorized operators and occupants for claims and damages resulting from the use or operation of that Vehicle during the rental period; (a) that such policy shall be primary with respect to any other insurance available to the Owner of the Private Motor Vehicle; but (b) that such policy shall be secondary with respect to any other insurance available to the Renter, authorized or permissive operator and occupants of the Private Motor Vehicle; and (3) that such insurer shall comply with the provisions of section 34B of chapter 90; and (4) that for the purposes of group insurance written under this section only, the rates charged by the insurer for group liability insurance as provided for in this section shall be filed with the commissioner on a file and use basis.
(b) An insurer which issues an insurance policy described in subsection (a) shall issue such policy identifying the Private Vehicle Rental Program and Program Provider as the named insureds; and any such policy shall include a provision that provides coverage, without prior notice to the insurer, for all Private Motor Vehicles during the Rental Period and such policy shall further include a provision that the Vehicles' Renters, authorized or permissive operators and occupants are included as insureds under the policy to the same extent that they would be insureds under a private passenger motor vehicle policy issued pursuant to sections 34A – 34R of chapter 90 and sections 113A – 113U of chapter 175.
(c) A group policy, as provided for in subsection (a) and (b), shall only be issued in accordance with the provisions of this article.
(d) A Program Provider may contractually assume the risk of physical damage loss to Private Motor Vehicles during the time that the Vehicles are in the custody of the Private Vehicle Renter or Private Vehicle Rental Program Provider; and (1) such assumption of risk of physical damage loss to the Vehicle shall not be deemed to be physical damage insurance; and (2) a Program Provider may offer optional vehicle protection in accordance with the provisions of section 32E1/2 of chapter 90; and
(e) An insurer which is authorized or eligible to do business in the state may issue a group policy of physical damage insurance to a Private Vehicle Rental Program and to the Owners of Vehicles participating in that Program to insure against physical damage loss to Vehicles while the Vehicles are in the custody of the Private Vehicle Rental Program or Private Vehicle Renter. Such group policy shall provide primary coverage for physical damage loss either by collision, comprehensive, or both, to the Vehicle while it is in the custody of the Private Vehicle Rental Program or a Private Vehicle Renter.
(f) If the group coverage provided for in subsection (e) is placed with an eligible excess line insurer, compliance with the excess line statutes and regulations of this state shall be performed with respect to the group as a whole and not with respect to individual group members.
(g) An insurer which issues a group insurance policy described in subsection (e) shall issue such policy identifying the Private Vehicle Rental Program as the named insured, and any
such policy shall include a provision that provides primary coverage, without prior notice to the insurer, for all Private Motor Vehicles during the Rental Period, and it shall further include physical damage coverage for damage or loss to the Owner's vehicle incurred during the Rental Period at a level no less than that of third party physical damage coverage.
(h) A group policy as provided for in subsections (e), (f), and (g) of this section shall only be issued in accordance with the provisions of this section.
SECTION 4. Section 34J of chapter 90 is amended by inserting after the fourth paragraph the following paragraphs:
In the case of a Private Motor Vehicle that is used in connection with a Private Vehicle Rental Program, as those terms are defined in section 63, the insurance requirements set forth in this section shall be met by a group insurance policy, as specified in section 233 of chapter 175, issued to a Program Provider and to the Private Vehicle Renters and authorized or permissive drivers of that Program for any time that the Private Motor Vehicle is being used in connection with the Private Vehicle Rental Program.
In the case of financial security procured by a Program Provider of a Private Vehicle Rental Program as set forth in section 233 of chapter 175, the Program Provider shall provide the commissioner with proof of financial security in the form of a group insurance policy covering itself and the Owners of all Private Motor Vehicles registered in this state that participate in the Program as insured group members, covering those vehicles while they are being used in conjunction with that Program. Such proof shall not be used in connection with the registration of the Vehicles and no such Vehicle shall be registered unless the Owner of the Vehicle separately complies with section 34B of chapter 90.
SECTION 5. This act shall take effect immediately upon its passage.
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