72A.125 RENTAL VEHICLE PERSONAL ACCIDENT INSURANCE; SPECIAL
Subdivision 1. Definition.
(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
(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
(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
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
, 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
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 leasee 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.
History: 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