Subdivision 1. Definitions. (a) "Auto rental company" means a corporation, partnership, individual, or other person that is engaged primarily in the renting of motor vehicles at per diem rates.
(b) "Rental vehicle personal accident insurance" means accident only insurance providing accidental death benefits, dismemberment benefits and/or reimbursement for medical expenses which is issued by an insurer authorized in this state to issue accident and health insurance. These coverages are nonqualified plans under chapter 62E.
(c) "Liability insurance" means insurance that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle. At the option of the auto rental company, this coverage may include uninsured or underinsured motorist coverage whether offered separately or in combination with other liability insurance.
(d) "Personal effects insurance" means coverage, as applicable, to renters and other rental vehicle occupants for the loss of, or damage to, personal effects which occurs during the rental period.
Subd. 2. Sale by auto rental companies. An auto rental company that offers or sells rental vehicle personal accident insurance, personal effects insurance, or liability insurance in this state in conjunction with the rental of a vehicle shall only sell these products if the forms and rates have met the relevant requirements of section 61A.02, 62A.02, or other relevant sections requiring approval of forms and rates taking into account the possible infrequency and severity of loss that may be incurred. An auto rental company offering insurance products for sale shall conduct a training program for its agents or employees, which must be submitted to the commissioner for approval. Sections 60K.30 to 60K.56 do not apply if the persons engaged in the sale of these products are employees of the auto rental company who do not receive commissions or other remuneration for selling the product in addition to their regular compensation. Compensation may not be determined in any part by the sale of insurance products. The auto rental company before engaging in the sale of the product must file with the commissioner the following documents:
(1) an appointment of the commissioner as agent for service of process;
(2) an agreement that the auto rental company assumes all responsibility for the authorized actions of all unlicensed employees who sell the insurance product on its behalf in conjunction with the rental of its vehicles;
(3) an agreement that the auto rental company with respect to itself and its employees will be subject to this chapter regarding the marketing of the insurance products and the conduct of those persons involved in the sale of insurance products in the same manner as if it were a licensed agent.
An auto rental company failing to file the documents in clauses (1) to (3) is guilty of an individual violation as to the unlicensed sale of insurance for each sale that occurs after August 1, 1987, until they make the required filings. Each individual sale after August 1, 1987, and prior to the filing required by this section is subject to, in addition to any other penalties allowable by law, up to a $200 per violation fine. Further, the sale of the insurance product by an auto rental company or any employee or agent of the company after August 1, 1987, without having complied with this section shall be deemed to be in acceptance of the provisions of this section.
Insurance sold pursuant to this subdivision must be limited in availability to rental vehicle customers though coverage may extend to the customer, other drivers, and passengers using or riding in the rented vehicles; and limited in duration to a period equal to and concurrent with that of the vehicle rental.
Persons purchasing rental vehicle personal accident insurance, personal effects insurance, or liability insurance may be provided a certificate summarizing the policy provisions in lieu of a copy of the policy if a copy of the policy is available for inspection at the place of sale and a free copy of the policy may be obtained from the auto rental company's home office.
The commissioner may, after a hearing, revoke an auto rental company's right to operate under this section if the company has violated the insurance laws of this state and the revocation is in the public interest.
Subd. 3. Collision damage waiver. A "collision damage waiver" is a discharge of the responsibility of the renter or lessee to return the motor vehicle in the same condition as when it was first rented. The waiver is a full and complete discharge of the responsibility to return the vehicle in the same condition as when it was first rented. The waiver may not contain any exclusions except those approved by the commissioner.
1987 c 329 s 21; 1987 c 337 s 115; 1988 c 611 s 3; 1992 c 564 art 3 s 26,29; 1999 c 177 s 69; 1999 c 236 s 2,3; 2001 c 117 art 2 s 16
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Chapter 72A — Insurance Industry Trade Practices
Section 72A.02 — Violations As To Policies Of Insurance.
Section 72A.03 — Agent Of Insurer; Procuring Premiums By Fraud.
Section 72A.04 — False Statements In Application.
Section 72A.05 — Failure To Make Report Or Comply With Law.
Section 72A.061 — Mandatory Filings; Failure To Comply; Penalties.
Section 72A.07 — Violations Of Laws Relating To Agents, Penalties.
Section 72A.09 — Violations Where Offense Is Not Specifically Designated.
Section 72A.10 — Failure To Appear Or Obstructing Commissioner.
Section 72A.11 — Complainant Entitled To One-half Of Fine In Certain Cases.
Section 72A.12 — Life Insurance.
Section 72A.125 — Rental Vehicle Personal Accident Insurance; Special Requirements.
Section 72A.13 — Accident And Health Insurance, Violations Of Certain Sections.
Section 72A.135 — Failure To Follow Dividend And Pricing Policy; Penalties.
Section 72A.139 — Use Of Genetic Tests.
Section 72A.15 — Penalty For Violation Of Law Providing For Insurance In Unlicensed Companies.
Section 72A.16 — Mutual Companies.
Section 72A.17 — Purpose Of Sections 72a.17 To 72a.32.
Section 72A.19 — Unfair Methods And Unfair Or Deceptive Acts And Practices.
Section 72A.20 — Methods, Acts, And Practices Which Are Defined As Unfair Or Deceptive.
Section 72A.201 — Regulation Of Claims Practices.
Section 72A.2031 — Definitions.
Section 72A.2032 — Duties Of Insurers And Insurance Producers.
Section 72A.2033 — Insurance Producer Training.
Section 72A.2035 — Record Keeping.
Section 72A.2036 — Relationship To Other Laws; Enforcement.
Section 72A.204 — Prohibited Uses Of Senior-specific Certifications And Professional Designations.
Section 72A.207 — Graded Death Benefits.
Section 72A.21 — Power Of Commissioner.
Section 72A.22 — Hearing; Witnesses; Production Of Books.
Section 72A.25 — Unfair Competition.
Section 72A.26 — Intervention.
Section 72A.285 — Claim For Insurance Benefits; Release Of Summary Information.
Section 72A.29 — Concurrent Remedies.
Section 72A.30 — Evidential Privilege Denied; Immunity; Waiver.
Section 72A.31 — Certain Acts Deemed Unfair Method Of Competition.
Section 72A.32 — Violations, Procedure.
Section 72A.325 — Insurance For Funeral Or Burial Expense; Freedom Of Choice.
Section 72A.328 — Affinity Group.
Section 72A.33 — Purpose Of Act, Construction.
Section 72A.35 — Notice To Domiciliary Supervisory Official.
Section 72A.36 — Action By Commissioner.
Section 72A.37 — Service Upon Unauthorized Insurer.
Section 72A.38 — Severability.
Section 72A.41 — Transacting Business Without Certificate Of Authority.
Section 72A.42 — Enforcement Authority.
Section 72A.43 — Service Of Process Upon Unauthorized Company By Commissioner.
Section 72A.491 — Definitions.
Section 72A.493 — Obtaining Information By Improper Means.
Section 72A.495 — Marketing And Research Surveys.
Section 72A.496 — Investigative Consumer Reports.
Section 72A.497 — Access To Personal Information.
Section 72A.498 — Correction, Amendment, Or Deletion Of Personal Information.
Section 72A.499 — Reasons For Adverse Underwriting Decisions.
Section 72A.50 — Previous Adverse Underwriting Decisions.
Section 72A.501 — Disclosure Authorization.
Section 72A.502 — Disclosure Of Information; Limitations And Conditions.
Section 72A.503 — Private Remedies.
Section 72A.504 — Obtaining Information Under Improper Means.