Bill Text: AZ SB1286 | 2012 | Fiftieth Legislature 2nd Regular | Engrossed
Bill Title: Rental car companies; liability insurance
Spectrum: Slight Partisan Bill (Republican 6-2)
Status: (Engrossed - Dead) 2012-03-12 - Referred to House RULES Committee [SB1286 Detail]
Download: Arizona-2012-SB1286-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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SENATE BILL 1286 |
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AN ACT
amending section 28‑2166, Arizona Revised Statutes; relating to motor vehicle registration.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-2166, Arizona Revised Statutes, is amended to read:
28-2166. Registration of vehicle rented without a driver; liability insurance; joint liability; violation; classification; definition
A. The department of transportation shall not allow an owner who is engaged in the business of renting or who intends to rent a motor vehicle without a driver to register the motor vehicle until either:
1. The owner has procured public liability insurance with an insurance company approved by the department of insurance.
2. The owner has furnished to the department of transportation satisfactory proof of the owner's ability to respond in damages in the amount of fifteen thousand dollars if one motor vehicle is registered and ten thousand dollars for each additional motor vehicle. Proof of the ability to respond in damages in the amount of one hundred thousand dollars is sufficient for any number of motor vehicles.
B. The policy of insurance required by subsection A of this section shall:
1. Insure the renter against:
(a) Liability arising from the renter's negligence in the operation of the rented motor vehicle in an amount of at least fifteen thousand dollars for any one person injured or killed and thirty thousand dollars for any number more than one injured or killed in any one accident.
(b) Liability of the renter for property damage in the amount of at least ten thousand dollars for any one accident.
2. Cover the liability of the renter to a passenger in the rented motor vehicle unless the owner gives the renter a written notice that the policy does not cover the liability.
C. The public liability insurance or the obligation of a self‑insured owner pursuant to this section is primary excess coverage to any other available insurance coverage for any damages and injury caused by a renter. If no other insurance is available to the renter, the public liability insurance or the obligation of a self-insured owner is primary. For the purposes of this subsection, "excess" means the public liability insurance or obligation of a self-insured owner that shall not exceed the limits prescribed by subsection B of this section, and is secondary to the renter's available insurance.
D. The owner regulated by this section:
1. Is not an insurer and has no obligation to provide a defense after the owner has tendered its limits to either the insured party or the next available coverage for a renter in a situation if a renter has caused property damage or personal injuries. The obligation of any other insurance company to provide a defense if a renter is alleged to have caused property damages or personal injuries shall be determined in accordance with the specific provisions of the applicable policy.
2. Shall respond to the third party claim, provide financial responsibility as prescribed by subsection B of this section and provide a defense for all claims for damages for liability arising out of the ownership, maintenance or use of a vehicle If there is an accident and both of the following apply:
(a) There are Damages or injuries that are caused by the renter.
(b) The renter does not have other liability coverage available or remaining.
2. 3. In any situation in which damages or injuries are caused by a person who is operating a motor vehicle and who is not authorized by the written rental agreement to do so, has a right of subrogation against the person who rented the motor vehicle for damages that are caused to the owner and that arose out of the unauthorized operation of the owner's motor vehicle.
3. 4. Except as provided in paragraph 2 3 of this subsection, has no other right of subrogation against the person who rented the motor vehicle.
E. The department of transportation shall cancel the registration of a motor vehicle rented without a driver if the owner has failed to comply with this section.
F. The owner of a motor vehicle who rents it to another without a driver, other than as a bona fide transaction involving the sale of the motor vehicle, without having procured the required public liability insurance or without qualifying as a self‑insurer pursuant to section 28‑4007 with at least the minimum limits prescribed in subsection A of this section is jointly and severally liable with the renter for damage caused by the negligence of the renter operating the motor vehicle.
G. The owner of a motor vehicle who rents a motor vehicle without a driver, other than as a bona fide transaction involving the sale of the motor vehicle, without first complying with this section is guilty of a class 2 misdemeanor.
H. As used in For the purposes of this section, an owner who is engaged in the business of renting or who intends to rent a motor vehicle without a driver does not include a person who operates a golf course that rents golf carts that are intended to be used primarily for playing a round of golf and that are only incidentally operated or moved on a highway.
I. As used in For the purposes of this section, "renter" includes any person operating a motor vehicle with permission of the person who has rented it.
