Print Print
  • Acts
  • 2002
  • Chapter 232 AN ACT FURTHER REGULATING MOTOR VEHICLE RENTAL AGREEMENTS.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:


SECTION 1. Section 32E½ of chapter 90 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by inserting after the word "executed", in line 57, the following words:- or by pre-selection of collision damage waiver in master, corporate or group rental agreements. A collision damage waiver shall not be considered insurance under this section or under any other General Laws.

SECTION 2. Said section 32E½ of said chapter 90, as so appearing, is hereby further amended by striking out, in line 60, the words "the notice required in section one" and inserting in place thereof the following words:- on the signature page of the individual rental agreement or within the master, corporate or group rental agreement when collision damage waiver is pre-selected the notice required in paragraph (1) of subsection (B).

SECTION 3. Said section 32E½ of said chapter 90, as so appearing, is hereby further amended by striking out subsections (D) and (E) and inserting in place thereof the following 3 subsections:-

(D) Notwithstanding any general or special law to the contrary, the rental company and its employees may offer or sell insurance only in connection with and incidental to the rental of private passenger automobiles or any other rental vehicle with a gross vehicle weight of less than 26,000 pounds and that does not require the operator to possess a commercial driver's license, whether at the time the rental agreement is executed or by pre-selection of coverage in master, corporate or group rental agreements, without the imposition of licensing, appointment, testing and education requirements if:

(1) the rental period does not exceed 90 consecutive days;

(2) at every rental office where rental agreements are executed, brochures or other written materials are readily available to the prospective renter that: (i) summarize clearly and correctly the material terms of coverage offered to renters, including the identity of the insurer; (ii) disclose that the coverage offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iii) state that the purchase by the renter of the kinds of coverage specified in this section is not required in order to rent a vehicle; (iv) and describe the process for filing a claim in the event the renter elects to purchase coverage and in the event of a claim; and

(3) the renter agrees to purchase the coverage by initialing the appropriate portion of the rental agreement at the time the rental agreement is executed or by pre-selection of coverage in master, corporate or group rental, and a description of the coverage is provided to every renter who elects to purchase the coverage.

(E) Any person violating this section shall be punished by a fine of not more than $100 for each violation. Each rental transaction in violation of this section shall constitute a separate violation. A civil penalty may be assessed in an action brought on behalf of the commonwealth.

(F) The director of consumer affairs and business regulation shall inform the office of the attorney general of any method, act or practice that the director determines to be a violation of this section.

Approved August 7, 2002.