Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 394-H.F.No. 2242 
           An act relating to insurance; no-fault auto; exempting 
          certain antique automobiles and recreational vehicles 
          from rental vehicle coverage; amending Minnesota 
          Statutes 1989 Supplement, section 65A.49, subdivision 
          5a.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
65B.49, subdivision 5a, is amended to read: 
    Subd. 5a.  [RENTAL VEHICLES.] (a) Every plan of reparation 
security insuring a natural person as named insured, covering 
private passenger vehicles as defined under section 65B.001, 
subdivision 3, and pickup trucks and vans as defined under 
section 168.011 must provide that all of the obligation for 
damage and loss of use to a rented private passenger vehicle, 
including pickup trucks and vans as defined under section 
168.011, and rented trucks with a registered gross vehicle 
weight of 26,000 pounds or less would be covered by the property 
damage liability portion of the plan.  This subdivision does not 
apply to plans of reparation security covering only motor 
vehicles registered under section 168.10, subdivision 1a, 1b, 
1c, or 1d, or recreational equipment as defined under section 
168.011.  The obligation of the plan must not be contingent on 
fault or negligence.  In all cases where the plan's property 
damage liability coverage is less than $25,000, the coverage 
available under the subdivision must be $25,000.  Other than as 
described in this paragraph, nothing in this section amends or 
alters the provisions of the plan of reparation security as to 
primacy of the coverages in this section. 
    (b) A vehicle is rented for purposes of this subdivision if 
the rate for the use of the vehicle is determined on a weekly or 
daily basis.  A vehicle is not rented for purposes of this 
subdivision if the rate for the vehicle's use is determined on a 
monthly or longer period. 
    (c) The policy or certificate issued by the plan must 
inform the insured of the application of the plan to private 
passenger rental vehicles, including pickup trucks and vans as 
defined under section 168.011, and that the insured may not need 
to purchase additional coverage from the rental company. 
     (d) Where an insured has two or more vehicles covered by a 
plan or plans of reparation security containing the rented motor 
vehicle coverage required under paragraph (a), the insured may 
select the plan the insured wishes to collect from and that plan 
is entitled to a pro rata contribution from the other plan or 
plans based upon the property damage limits of liability.  If 
the person renting the motor vehicle is also covered by the 
person's employer's insurance policy or the employer's 
automobile self-insurance plan, the reparation obligor under the 
employer's policy or self-insurance plan has primary 
responsibility to pay claims arising from use of the rented 
vehicle. 
      (e) A notice advising the insured of rental vehicle 
coverage must be given by the reparation obligor to each current 
insured with the first renewal notice after January 1, 1989.  
The notice must be approved by the commissioner of commerce.  
The commissioner may specify the form of the notice.  
      (f) When a motor vehicle is rented or leased in this state 
on a weekly or daily basis, there must be attached to the rental 
contract a separate form containing a written notice in at least 
10-point bold type, if printed, or in capital letters, if 
typewritten, which states: 
 Under Minnesota law, a personal automobile insurance policy 
issued in Minnesota must cover the rental of this motor 
vehicle against damage to the vehicle and against loss of 
use of the vehicle.  Therefore, purchase of any collision 
damage waiver or similar insurance affected in this rental 
contract is not necessary if your policy was issued in 
Minnesota. 
No collision damage waiver or other insurance offered as part of 
or in conjunction with a rental of a motor vehicle may be sold 
unless the person renting the vehicle provides a written 
acknowledgment that the above consumer protection notice has 
been read and understood. 
      (g) When damage to a rented vehicle is covered by a plan of 
reparation security as provided under paragraph (a), the rental 
contract must state that payment by the reparation obligor 
within the time limits of section 72A.201 is acceptable, and 
prior payment by the renter is not required. 
       (h) To be compensated for the loss of use of a damaged 
rented motor vehicle, the car rental company must prove: 
      (1) that had the vehicle been available, it would have been 
rented; and 
      (2) that no other vehicle was available for rental in place 
of the damaged vehicle. 
      The standard of proof set forth in this paragraph does not 
limit the responsibility of a reparation obligor to provide an 
insured with coverage for any loss of use for which the 
reparation obligor is otherwise responsible.  A car rental 
company may be compensated for loss of use of a damaged rental 
motor vehicle only for the period when the damaged car actually 
would have been rented. 
    Presented to the governor April 2, 1990 
    Signed by the governor April 5, 1990, 2:50 p.m.