PRIOR PRINTER'S NO. 334 PRINTER'S NO. 1217
No. 310 Session of 1987
INTRODUCED BY STABACK, MANDERINO, BURNS, HALUSKA, TIGUE,
KOSINSKI, YANDRISEVITS, PISTELLA, BORTNER, JOSEPHS, McCALL,
COLAFELLA, BELARDI, HOWLETT, LAUGHLIN, CAPPABIANCA AND
JAROLIN, FEBRUARY 10, 1987
AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 22, 1987
AN ACT
1 Requiring persons engaged in the rental of motor vehicles who <--
2 arrange liability coverage for the lessee to ensure that
3 certain coverage is included; imposing liability for failure
4 to do so; and regulating collision damage waiver provisions
5 of rental agreements.
6 PROHIBITING CERTAIN BENEFIT EXCLUSIONS FOR RENTED AND LEASED <--
7 MOTOR VEHICLES; REQUIRING PERSONS ENGAGED IN THE RENTAL OF
8 MOTOR VEHICLES WHO ARRANGE LIABILITY OR FIRST PARTY COVERAGE
9 FOR THE LESSEE TO ENSURE THAT CERTAIN COVERAGE IS INCLUDED;
10 AND IMPOSING LIABILITY FOR FAILURE TO DO SO.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Limitation on exclusion of certain benefits under
14 insurance policies covering motor vehicle rental <--
15 agreements. OR SELF-INSURANCE ARRANGEMENTS <--
16 COVERING RENTED OR LEASED MOTOR VEHICLES.
17 No motor vehicle rented or leased from any location in this
18 Commonwealth may be insured COVERED by an insurance policy OR <--
19 SELF-INSURANCE ARRANGEMENT which excludes insurance benefits if <--
20 the lessee causes IS INVOLVED IN a vehicular accident while <--
1 under the influence of drugs or intoxicating beverages at the
2 time of the accident.
3 Section 2. Duty of lessor of motor vehicle who arranges
4 liability insurance OR FIRST PARTY coverage. <--
5 Any person engaged in the rental of motor vehicles from
6 locations in this Commonwealth who, at the time of rental,
7 arranges liability insurance OR FIRST PARTY coverage for the <--
8 lessee shall have a duty to ensure that the arranged insurance <--
9 contract does not deny coverage in the event that the ability of
10 the driver has been impaired by drugs or alcohol BENEFITS ARE <--
11 NOT DENIED IN THE EVENT THAT THE DRIVER IS UNDER THE INFLUENCE
12 OF DRUGS OR INTOXICATING BEVERAGES. It shall be the further duty
13 of the lessor to ensure that, in the event the rented motor
14 vehicle is not returned during the contracted rental period, the
15 arranged liability insurance OR FIRST PARTY coverage for the <--
16 lessee and any other liability insurance OR FIRST PARTY COVERAGE <--
17 on the rented vehicle continues until such time as the motor
18 vehicle is reported to the police as stolen.
19 Section 3. Liability of motor vehicle lessor.
20 Failure of a person engaged in the rental of motor vehicles
21 to comply with sections 1 and 2 shall, as a matter of law,
22 render such person responsible for the mandated minimum limits
23 of financial responsibility set forth in the Motor Vehicle
24 Financial Responsibility Law arising out of the use of the motor
25 vehicle for which the lessee would otherwise be responsible.
26 Section 4. Restrictions on collision damage waivers as part of <--
27 motor vehicle rental agreements.
28 No person engaged in the business of renting motor vehicles
29 from locations in this Commonwealth shall issue or deliver in
30 this Commonwealth, separate from or as part of a motor vehicle
19870H0310B1217 - 2 -
1 rental agreement, a collision damage waiver whereby the lessor
2 agrees, for a charge, to waive any and all claims against the
3 lessee for any damage caused to the rented vehicle during the
4 term of the rental agreement unless:
5 (1) The collision damage waiver is written in simple and
6 readable words with common meanings and is understandable.
7 (2) The terms of the collision damage waiver are
8 prominently displayed, including, but not limited to, any
9 conditions and exclusions applicable to the collision damage
10 waiver. The collision damage waiver may exclude damage caused
11 intentionally by the lessee or as a result of his or her
12 willful or wanton misconduct.
13 (3) The collision damage waiver includes a statement of
14 the daily charge.
15 (4) The agreement containing the collision damage waiver
16 displays the following notice on the face of the agreement,
17 set apart and in boldface type and in no smaller print than
18 ten-point type:
19 NOTICE: By signing this contract you may become
20 absolutely responsible for any damage to the vehicle,
21 even if you are not at fault.
22 Before deciding to purchase a collision damage
23 waiver, you may wish to determine whether your own
24 automobile insurance provides you coverage for damage to
25 the rental vehicle. The purchase of a collision damage
26 waiver is not mandatory.
27 Section 5 4. Application of Consumer Protection Law. <--
28 A violation of section 4 THIS ACT constitutes a violation of <--
29 the act of December 17, 1968 (P.L.1224, No.387), known as the
30 Unfair Trade Practices and Consumer Protection Law.
19870H0310B1217 - 3 -
1 Section 6 5. Effective date. <--
2 This act shall take effect in 180 90 days. <--
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