SENATE, No. 4302

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED DECEMBER 9, 2019

 

 

Sponsored by:

Senator  JOSEPH P. CRYAN

District 20 (Union)

 

 

 

 

SYNOPSIS

     "Private Vehicle Rental Modernization Act."

 

CURRENT VERSION OF TEXT

     As introduced.

 

An Actconcerning vehicle rental transactions, and amending P.L.1953, c.173 and supplementing Title 39 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    This act shall be known and may be cited as the "Private Vehicle Rental Modernization Act."

 

     2.    As used in P.L.    , c.    (C.      ) (pending before the Legislature as this bill):

     "Group policy" means an insurance policy issued pursuant to section 5 of P.L.    , c.    (C.      ) (pending before the Legislature as this bill).

     "Motor vehicle rental company" means any corporation, sole proprietorship or other entity or person, including a franchisee, engaged in the business of facilitating vehicle rental transactions which occur in this State. "Motor vehicle rental company" excludes a private rental vehicle owner, who makes no more than three vehicles available for rent through any private vehicle rental program, or through any combination of private vehicle rental programs, during a twelve-month period.

     "Program rental period" or "rental period" means the period of time when a renter takes possession and control of a vehicle available for private vehicle rental, includes the time when that vehicle is under the control of the program provider, and continues until the following conditions are met:

     (1)   the vehicle is:

     (a)   retrieved by the owner or owner's designee;

     (b)   returned to a location agreed upon by the owner and the renter; or

     (c)   returned to a location designated by the program provider; and

     (2)   one of the following occurs:

     (a)   the time period established through the program expires;

     (b)   the renter verifiably communicates to the program provider or owner that they deem the rental period terminated; or

     (c)   the owner or the program provider takes possession and control of the vehicle.

     "Private rental vehicle" or "vehicle" means a motor vehicle owned and registered to an individual that is used in a private vehicle rental program and which is insured, or subject to being insured, under a private passenger automobile insurance policy by the registered owner. 

     (1)   A private rental vehicle shall not be considered an autocab or taxi as defined in R.S.48:16-1, a limousine as defined in R.S.48:16-13 or section 2 of P.L.1997, c.356 (C.48:16-13.1), an autobus or jitney as defined in R.S.48:16-23, a motor bus as defined in section 1 of P.L.1991, c.154 (C.17:28-1.5), or any other for-hire vehicle. 

     (2)   A private rental vehicle shall not be considered an automobile as defined in subsection a. of section 2 of P.L.1972, c.70 (C.39:6A-2) during a program rental period.

     "Private rental vehicle owner" or "owner" means the registered owner of a private rental vehicle available for rent through a private vehicle rental program.

     "Private vehicle rental" means the use of a private rental vehicle by persons other than the vehicle's registered owner, in connection with a private vehicle rental program.

     "Private vehicle rental program" or "program" means any means, digital or otherwise, by which a private vehicle rental is facilitated by a private vehicle rental program provider.

     "Private vehicle rental program provider" or "program provider" means the corporation, sole proprietorship or other entity or person that is responsible for operating, facilitating or administering vehicle rental transactions through a private vehicle rental program.

     "Private vehicle renter" or "renter" means a person, other than the private rental vehicle owner, who rents the owner's vehicle through a private vehicle rental program.

     "Vehicle rental transaction" means the transfer of possession of a private rental vehicle from the owner to a renter, for a consideration, without the transfer of ownership of that motor vehicle.

 

      3.   a.   A vehicle rental transaction facilitated by a private vehicle rental program provider shall be subject to all statutory and regulatory obligations for motor vehicle rental vehicles, transactions, and companies including, but not limited to compliance with following:

     (1)   municipal taxes and fees, including, but not limited to section 20 of P.L. 2009, c.90 (C.40:48H-2);

     (2)   motor vehicle safety requirements including but not limited to child passenger safety restraint systems as provided in section 1 of P.L.1983, c.128 (C.39:3-76.2a) and the provision of an appropriate child restraint as provided in section 2 of P.L.1985, c.202 (C.45:21-14);

     (3)   any sales and use taxes as provided in P.L.1966, c.30 (C.54:32B-1 et seq.);

     (4)   plain language in consumer contracts as provided in P.L.1980, c.125 (C.56:12-1 et seq.);

     (5)   the prohibition on the transportation of passengers for hire by a lessee or bailee of a motor vehicle as provided by R.S. 45:21-9; 

     (6)   the "New Jersey Business Corporation Act," N.J.S. 14A:1-1 et seq.; and 

     (7)   the rental motor vehicle surcharge imposed by section 54 of P.L. 2002, 34 (C. App.A:9-78).

      b.   Any notice or disclosure required to be provided, delivered, posted, or otherwise made available pursuant to any motor vehicle rental company shall also be deemed timely and effectively made when that notice or disclosure is provided or delivered electronically at or before the time required or included in a member or master agreement in effect at the time of rental.  For the purposes of P.L.    , c.    (C.      ) (pending before the Legislature as this bill), a master or member agreement shall include, but not be limited to, any service:

     (1)   offered by a company that permits customers to bypass a retail service location and obtain a product or service directly;

     (2)   for which the rental company does not require the renter to execute a rental agreement at the time of rental; or

     (3)   for which the renter does not receive the rental terms and conditions at the time of rental. 

      c.    Electronic or written acceptance by a renter shall be a valid form of acceptance of any notice or disclosure, and acceptance shall remain effective until that acceptance is affirmatively withdrawn by the renter. 

      d.   Notices and disclosures made pursuant to P.L.    , c.    (C.      ) (pending before the Legislature as this bill), shall be exempt from any placement or stylistic display requirements, including but not limited to location, font size, typeset, or other specifically-stated description; so long as those disclosures are generally consistent in appearance with the entirety of the communication in which it is contained.

      e.    If a motor vehicle rental company facilitates rentals via digital, electronic, or other means that allow customers to obtain possession of a vehicle without in person contact with an agent or employee of the provider, or where the renter does not execute a rental contract at the time of rental, the motor vehicle rental company shall be deemed to have met all obligations to physically inspect and compare a renter's driver license pursuant to P.L.1949, c.206 (C.45:21-12) if that provider:

     (1)   at the time a renter enrolls, or any time thereafter, in a membership program, master agreement, or other means of establishing use of the provider's services, requires verification that the renter is a licensed driver; or

     (2)   prior to the renter taking possession of the rental vehicle, the provider requires documentation that verifies the renter's identity.

     4.    a.  No private passenger automobile insured, or subject to being insured, by its registered owner pursuant to P.L.1972, c. 197 (C.39:6B-1) shall be classified as a commercial vehicle, for-hire vehicle, permissive use vehicle, taxicab or livery solely because its registered owner allows it to be used for private vehicle rental, as long as all of the following circumstances apply:

     (1)   the private vehicle rental is compliant with a personal vehicle rental program as provided for in P.L.    , c.    (C.      ) (pending before the Legislature as this bill);

     (2)   the owner, or program provider, does not knowingly place the vehicle, or allow the vehicle to be placed, into use as a commercial vehicle, or as a vehicle for hire by a private vehicle renter, while the vehicle is utilized for private vehicle rental; and

     (3)   the number of private passenger automobiles a single individual, or multiple individuals residing in the same household, has enrolled in any private vehicle rental program, or combination of private vehicle rental programs, does not exceed four.

      b.   A private passenger automobile insurer may cancel or refuse coverage to an owner solely due to the number of vehicles enrolled in private vehicle rental, if the number of vehicles enrolled in any private rental program, or combination of programs, either by the insured, or in combination with other household residents, exceeds four.

      c.    A program provider for each vehicle for which it facilitates the rental, shall:

     (1)   procure group insurance coverage for each vehicle engaged in private vehicle rental and each authorized driver of that vehicle during the rental period.  That insurance shall, at a minimum, provide for each vehicle:

     (a)   liability coverage at least equal to the minimum financial responsibility requirements for personal passenger motor vehicles of the state in which the vehicle is registered; and

     (b)   property and casualty coverage including comprehensive and collision protection, in accordance with subsection d. and e. of section 5 of P.L.    , c.    (C.      ) (pending before the Legislature as this bill);

     (2)   provide the registered owner of the vehicle engaged in private vehicle rental with suitable proof of compliance with the insurance requirements of this section and the requirements of P.L.1985, c.520 (C.17:28-1.4), a copy of which shall be maintained in the vehicle by the owner whenever the vehicle is operated by a renter, or person other than the owner, pursuant to a private vehicle rental program;

     (3)   not permit the vehicle to be operated for commercial use or as a vehicle for hire by a renter while engaged in private vehicle rental;

     (4)   provide each renter, for each rental transaction under the program, at the time of each rental:

     (a)   access to an insurance identification card approved for use by the state in which the vehicle is registered; or other documentation, able to be carried in the vehicle at all times during the rental period, that proves the insurance coverage referred to in paragraph (1) of this subsection is in full force and effect; and

     (b)   the means, via a toll-free number, email address or other form of communication with a law enforcement police officer, a representative of the motor vehicle commission or other officer of the state in which the vehicle is registered or any political subdivision thereof, to confirm in real time that insurance coverage provided for in paragraph (1) of this subsection is in effect;

     (5)   require that every vehicle made available for private vehicle rental complies with the minimum financial responsibility requirements of the state in which the vehicle is registered;

     (6)   require that every vehicle used in a program is a private rental vehicle;

     (7)   facilitate the installation, operation, and maintenance of its own signage and computer hardware and software to the extent necessary for the vehicle to be used in the program;

     (8)   indemnify and hold harmless the owner for the cost of damage or theft of equipment installed by the program provider under paragraph (7) of this subsection for any damage caused to the vehicle by the installation, operation, or maintenance of that equipment;

     (9)   collect, maintain and make available, to any government agency as required by law, at the cost of the program, the owner's primary motor vehicle liability insurer, the renter's primary automobile, excess, or umbrella insurer; and the following information pertaining to incidents that occurred during any rental period:

     (a)   verifiable records of the rental period for each vehicle, and to the extent electronic equipment for monitoring the following information is installed in the vehicle, verifiable electronic records of the time, initial and final locations of the vehicle, and to the extent mileage is collected miles driven; and

     (b)   in instances in which an insurance claim has been filed with a group insurer, any and all information relevant to the claim, including payments by the program provider concerning accidents, damages and injuries; and

     (10)    ensure that the owner and renter are given notice prior to the first use or operation of a private rental vehicle pursuant to enrollment in a private vehicle rental program, that:

     (a)   during the rental period, the owner's insurer may exclude any and all coverage afforded to its policy and the owner's insurer shall have the right to notify an insured that it shall have no duty to defend or indemnify any person or organization for liability for any loss that occurs during the rental period; and

     (b)   the group policy and physical damage coverage contract may not provide coverage outside of the rental period.

 

      5.   a.   Notwithstanding any other provision of law or any provision in a private passenger automobile insurance policy, in the event of a loss or injury that occurs during the rental period or while the private rental vehicle is otherwise under the control of a private vehicle rental program provider, the program provider shall be deemed the owner of the vehicle.  The program provider shall retain this liability irrespective of a lapse in the group policy or any insurance policy under which the program is insured, or whether liability is covered under the group policy or any insurance policy under which the program is insured.

      b.   A program provider's group policy shall provide coverage during the rental period for an owner's private passenger automobile in use as a private rental vehicle.

      c.    The insurer or insurers providing group liability insurance to the private vehicle rental program pursuant to subsection a. of section 6 of P.L.    , c.    (C.      ) (pending before the Legislature as this bill) and group physical damage insurance to the private vehicle rental program pursuant to subsection d. of section 6 of P.L.    , c.    (C.      ) (pending before the Legislature as this bill) shall assume liability for a claim in which a dispute exists as to who was in control of the vehicle when the loss occurred giving rise to the claim, and the owner's private passenger automobile insurer shall indemnify the private vehicle rental program's group insurer or insurers, to the extent of its obligation under the applicable insurance policy, if it is determined that the vehicle's owner was in control of the vehicle at the time of the loss.  The program shall notify the owner's insurer of any such dispute within 10 business days of becoming aware that such a dispute exists.

      d.   If the owner of the vehicle or its insurer is named as a defendant in a civil action for a loss or injury that occurs during any time within the rental period, or otherwise under the control of a private vehicle rental program provider, the program's group liability insurance insurer under subsection a. of section 6 of P.L.    , c.    (C.      ) (pending before the Legislature as this bill) shall have the duty to defend and indemnify the vehicle's owner and the owner's insurer, subject to the provisions of subsection c. of this section.

      e.    Notwithstanding any other provision of law to the contrary, while a private rental vehicle is used by a person other than its owner, pursuant to a private vehicle rental facilitated through a private vehicle rental program, all of the following shall apply:

     (1)   the insurer of that vehicle may exclude any and all coverage for liability, uninsured, underinsured, collision physical damage and comprehensive physical damage benefits and first-party benefits that may otherwise be afforded pursuant to its policy; and

     (2)   the primary and excess insurer or insurers of the owner of the private rental vehicle used in a private vehicle rental program shall have the right to notify the insured that it has no duty to defend or indemnify any person or organization for liability for any loss that occurs during the rental period of the vehicle in a private vehicle rental program.

      f.    No owner's policy of insurance shall be cancelled, voided, terminated, rescinded, or non-renewed, solely on the basis that the private rental vehicle has been made available for private vehicle rental pursuant to a private vehicle rental program that is in compliance with the provisions of this section, provided that:

     (1)   the provisions of this subsection shall not pertain to cancellations in accordance with the provisions of P.L.1968, c.158 (C.17:29C-7);

     (2)   an insurer may refuse to enroll a vehicle in a usage-based insurance program, where that usage-based insurance program continually monitors usage electronically to determine acceleration, braking, miles driven if other indicia of driving behavior, if that vehicle is used in a private vehicle rental program under P.L.    , c.    (C.      ) (pending before the Legislature as this bill); and

     (3)   an insurer may cancel or non-renew a policy that insures a vehicle used in the private vehicle rental program if that vehicle is enrolled in such a usage-based insurance program.  The insurer must immediately offer the insured a new policy with the same coverages and pre-existing rates, but without enrollment in the usage-based insurance program.

 

      6.   An insurer authorized or eligible to do business in this State may issue, or issue for delivery in this State, a group policy of liability and property and casualty insurance to a private vehicle rental program provider to insure the private vehicle rental program, and the renters, authorized drivers and occupants of the private rental vehicle, as well as the program provider, its agents, employees, directors, officers and assigns.

      a.    A policy issued pursuant to this section shall:

     (1)   provide first party coverage, liability, property, comprehensive, collision, and uninsured/underinsured motorist coverage for the private rental vehicle and its authorized operators and occupants for claims and damages resulting from the use or operation of that vehicle during the rental period;

     (2)   provide that the policy shall be primary with respect to any other insurance available to the owner of the private rental vehicle, and the policy shall be secondary with respect to any other insurance available to the renter, authorized or permissive operator and occupants of the private rental vehicle; and

     (3)   provide that the insurer shall comply with the provisions of P.L.1952, c.173 (C.39:6-23 et seq.); and

     (4)   provide that for the purposes of group insurance written under this section only, the rates charged by the insurer for group liability insurance as provided for in this section shall be filed with the Department of Banking and Insurance on a file and use basis.

      b.   An insurer which issues an insurance policy described in subsection a. of this section shall issue that policy identifying the private vehicle rental program and program provider as the named insureds. The policy shall include a provision that provides coverage, without prior notice to the insurer, for all private rental vehicles during the rental period and shall further include a provision that the vehicles' renters, authorized or permissive operators and occupants are included as insureds under the policy to the same extent that they would be insureds under a motor vehicle policy issued pursuant to P.L.1968, c.385 (C.17:28-1.1).

      c.    A program provider may contractually assume the risk of physical damage loss to private rental vehicles during the time that the vehicles are in the custody of the private vehicle renter or private vehicle rental program provider and any assumption of risk of physical damage loss to the vehicle shall not be deemed to be physical damage insurance.

      d.   An insurer which is authorized or eligible to do business in the State may issue a group policy of physical damage insurance to a private vehicle rental program and to the owners of vehicles participating in that program to insure against physical damage loss to vehicles while the vehicles are in the custody of the private vehicle rental program or private vehicle renter.  Such group policy shall provide primary coverage for physical damage loss either by collision, comprehensive, or both, to the vehicle while it is in the custody of the private vehicle rental program or a private vehicle renter.

      e.    If the group coverage provided for in subsection d. of this section is placed with an eligible surplus lines insurer, compliance with the surplus lines statutes and regulations of this State shall be performed with respect to the group as a whole and not with respect to individual group members.

      f.    An insurer which issues a group insurance policy described in subsection d. of this section shall issue such policy identifying the private vehicle rental program as the named insured, and that policy shall include a provision that provides primary coverage, without prior notice to the insurer, for all private rental vehicles during the rental period, and shall further include a provision that claims will be adjusted pursuant to P.L.1947, c.379 (C.17:29B-1 et seq.), and it shall further include physical damage coverage for damage or loss to the owner's vehicle incurred during the rental period at a level no less than that of third party physical damage coverage.

     7.    Section 3 of P.L.1952, c.173 (C.39:6-25) is amended to read as follows:

     3.    (a)        If 20 days after the receipt of a report of a motor vehicle accident within this State which has resulted in bodily injury or death, or damage to the property of any one person in excess of $500.00, the director does not have on file evidence satisfactory to him that the person who would otherwise be required to file security under subsection b. of this section has been released from liability, or has been finally adjudicated not to be liable, or has executed a duly acknowledged written agreement providing for the payment of an agreed amount in installments with respect to all claims for injuries or damages resulting from the accident, and in the event of an accident involving an automobile, required to have coverage for personal injury protection benefits pursuant to P.L.1972, c.70 (C.39:6A-1 et seq.), has also reimbursed or has executed a duly acknowledged written agreement to pay an agreed amount in installments to reimburse the Unsatisfied Claim and Judgment Fund for the payment of all personal injury protection benefits the fund has made or shall make pursuant to section 7 or section 10 of P.L.1972, c.198 (C.39:6-86.1 and C.39:6-86.4) by reason of the failure of such person to have the requisite insurance coverage in effect, the director shall determine the amount of security which may be necessary in his judgment to satisfy any reimbursement, judgment or judgments for damages resulting from such accident as may be recovered against each operator or owner in view of the total insurance protection available to the injured party. The Director of the Division of Motor Vehicles shall promulgate such rules as may be necessary to set forth those instances where deposit of security is necessary.

     (b)   The director may, within 90 days after the receipt of such report of a motor vehicle accident, suspend the license of each operator and all registrations of each owner of a motor vehicle in any manner involved in such accident, and if such operator is a nonresident the privilege of operating a motor vehicle within this State, and if such owner is a nonresident the privilege of the use within this State of any motor vehicle owned by him, unless such operator or owner or both shall deposit security in the sum so determined by the director; provided, notice of such suspension shall be sent by the director to such operator and owner not less than 10 days prior to the effective date of such suspension and shall state the amount required as security.  Where erroneous information is given the director with respect to the matters set forth in paragraph (1), (2) or (3) of subsection c. of this section, he may take appropriate action as hereinbefore provided, within 90 days after receipt by him of correct information with respect to said matters.

     (c)   This section shall not apply under the conditions stated in section 4 of this act nor:

     (1)   To such operator or owner, if such owner had in effect, at the time of such accident, a motor vehicle liability policy with respect to the motor vehicle involved in such accident;

     (2)   To such operator, if not the owner of such motor vehicle, if there was in effect at the time of such accident a motor vehicle liability policy or bond with respect to his operation of motor vehicles not owned by him;

     (3)   To such operator or owner if the liability of such operator or owner for damages resulting from such accident is, in the judgment of the director, covered by any other form of liability insurance policy or bond; nor

     (4)   To any person qualifying as a self-insurer under section 30 of this act, or to any person operating a motor vehicle for such self-insurer.

     No such policy or bond shall be effective under this section unless issued by an insurance company or surety company authorized to do business in this State, except that if such motor vehicle was not registered in this State, or was a motor vehicle which was registered elsewhere than in this State at the effective date of the policy or bond, or the most recent renewal thereof, such policy or bond shall not be effective under this section unless the insurance company or surety company if not authorized to do business in this State shall execute a power of attorney authorizing the director to accept service on its behalf of notice or process in any action upon such policy or bond arising out of such accident; provided, however, every such policy or bond is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than $15,000.00 because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, to a limit of not less than $30,000.00 because of bodily injury to or death of two or more persons in any one accident, and, if the accident has resulted in injury to or destruction of property, to a limit of not less than $5,000.00 because of injury to or destruction of property of others in any one accident and if policy or bond is applicable to an automobile required to have coverage for personal injury protection benefits pursuant to P.L. 1972, c. 70 (C. 39:6A-1 et seq.), it shall include an amount to cover personal injury protection benefits as required by that act.

     (d)   In the case of a private rental vehicle that is used in connection with a private vehicle rental program, as those terms are defined in section 1 of P.L.     , c.     (C.    ) (pending before the Legislature as this bill), the insurance requirements set forth in subsection (a) of this section shall be met by a group insurance policy, as specified in section 6 of P.L.     , c.    (C.    ) (pending before the Legislature as this bill), issued to a program provider and to the private vehicle renters and authorized or permissive drivers of that program for any time that the private rental vehicle is being used in connection with the private vehicle rental program.

     (e)   In the case of financial security procured by a program provider of a private vehicle rental program pursuant to section 5 of P.L.     , c.    (C.    ) (pending before the Legislature as this bill), the program provider shall provide the Chief Administrator of the Motor Vehicle Commission with proof of financial security in the form of a group insurance policy covering itself and the owners of all private rental vehicles registered in this State that participate in the program as insured group members, covering those vehicles while they are being used in conjunction with that program.  Such proof shall not be used in connection with the registration of the vehicles and no such vehicle shall be registered unless the owner of the vehicle separately complies with P.L.1972, c.197 (C.39:6B-1).

(cf: P.L.1988, c.119, s.12)

 

     8.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill, to be known and cited as the "Private Vehicle Rental Modernization Act," regulates certain aspects of the emerging business of "peer-to-peer" private motor vehicle rental transactions, also sometimes referred to as personal vehicle sharing programs. 

     The bill requires private vehicle rental program providers and vehicle rental transactions, that are facilitated by private vehicle rental program providers, to comply with all statutory and regulatory obligations for private passenger motor vehicle rental transactions, and companies, including, but not limited to, compliance with following:

     (1)   municipal taxes and fees;

     (2)   motor vehicle safety requirements, including but not limited to child passenger safety restraint systems as provided in section 1 of P.L.1983, c.128 (C.39:3-76.2a) and the provision of an appropriate child restraint as provided in section 2 of P.L.1985, c.20 (C.45:21-14);

     (3)   any sales and use taxes;

     (4)   plain language in consumer contracts as provided in P.L.1980, c.125 (C.56:12-1 et seq.);

     (5)   the prohibition on the transportation of passengers for hire by a lessee or bailee of a motor vehicle as provided by R.S. 45:21-9;

     (6)   the "New Jersey Business Corporation Act;" and 

     (7)   the rental motor vehicle surcharge imposed by section 54 of P.L. 2002, 34 (C. App.A:9-78).

     This bill defines a "vehicle rental transaction" as the transfer of possession of a motor vehicle, for a consideration, without the transfer of ownership of that motor vehicle. The bill defines a "private vehicle rental program provider" as the corporation, sole proprietorship or other entity, or person that is responsible for operating, facilitating, or administering vehicle rental transactions through a private vehicle rental program.  Lastly, the bill defines "private vehicle rental program" as any means, digital, or otherwise, which facilitate a private vehicle rental by a private vehicle rental program provider.

     This bill allows for any notices or disclosures, that must be made by motor vehicle rental companies, to be made electronically. The bill also exempts all notices and disclosures made pursuant to the bill from any stylistic display requirements.

     The bill requires private vehicle rental program providers to procure group insurance coverage for each vehicle and authorized driver of any such vehicle during the rental period. That insurance shall, at a minimum, provide for each vehicle, the minimum financial responsibility requirements for personal passenger motor vehicles of the state in which the vehicle is registered, and property and casualty coverage including comprehensive and collision protection. For each rental transaction, the private vehicle rental program provider must provide each renter access to an insurance identification card and the means to confirm that coverage. 

     The bill mandates that, in the event of a loss or injury during the rental period or while the motor vehicle is under the control of a private vehicle rental program provider, the private vehicle rental program provider is deemed the owner of the vehicle.

     The bill allows an insurer to issue liability, and property and casualty insurance to a private vehicle rental program provider to insure the private vehicle rental program, and the renters, authorized drivers, and occupants of the private rental vehicle, as well as the private vehicle rental program provider. The bill also allows an insurer to issue a group policy of physical damage insurance to a private vehicle rental program and to the owners of vehicles participating in that program to insure against physical damage loss to vehicles while the vehicles are in the custody of the private vehicle rental program or private vehicle renter.

     This bill modifies the Motor Vehicle Security-Responsibility Law so that group insurance policies, as specified in the bill, meet the insurance requirements of that law. The bill also establishes that private vehicle rental program providers can procure financial security in the form of a group insurance policy and report such security to the Chief Administrator of the Motor Vehicle Commission.