(215 ILCS 5/500-105)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-105.
Car rental limited line license for rental companies.
(a) A rental company must obtain a producer license or obtain a car rental
limited line
license before offering or selling insurance in connection with and incidental
to the rental of
vehicles. The sale of the insurance may occur at the rental office or by
preselection of coverage
in a master, corporate, group rental, or individual agreement. The following
general categories
of coverage may be offered or sold:
(1) personal accident insurance covering the risks of |
| travel including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period;
|
|
(2) liability insurance, including uninsured and
|
| underinsured motorist coverage, that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle;
|
|
(3) personal effects insurance that provides
|
| coverage, as applicable, to renters and other vehicle occupants for the loss of, or damage to, personal effects that occurs during the rental period;
|
|
(4) roadside assistance and emergency sickness
|
|
(5) any other travel or auto-related coverage that a
|
| rental company offers in connection with and incidental to the rental of vehicles.
|
|
(b) Insurance may not be offered by a car rental limited line producer
pursuant to this
Section unless:
(1) the rental company has applied for and obtained a
|
| car rental limited line license;
|
|
(2) the rental period of the rental agreement does
|
| not exceed 30 consecutive days;
|
|
(3) at every rental location where rental agreements
|
| are executed, brochures or other written materials are readily available to the prospective renter that:
|
|
(A) summarize clearly and correctly, the material
|
| terms of coverage offered to renters, including the identity of the insurer;
|
|
(B) disclose that the coverage offered by the
|
| rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;
|
|
(C) state that the purchase by the renter of the
|
| kinds of coverage specified in this Section is not required in order to rent a vehicle; and
|
|
(D) describe the process for filing a claim in
|
| the event the renter elects to purchase coverage and in the event of a claim; and
|
|
(4) evidence of coverage in the rental agreement is
|
| disclosed to every renter who elects to purchase such coverage.
|
|
(c) Car rental company franchisees must apply for a car rental limited line
license
independent of the franchisor if insurance provided pursuant to this Section is
offered by the
franchisee.
(d) A car rental limited line license issued under this Section shall also
authorize any
employee of the car rental
limited line licensee to act individually on behalf and
under the
supervision of the car rental limited line licensee with respect to the kinds
of coverage specified
in this Section.
(e) A rental company licensed pursuant to this Section must conduct a
training
program in which employees being trained shall receive basic instruction about
the kinds of
coverage specified in this Section and offered for purchase by prospective
renters of rental
vehicles.
(f) Notwithstanding any other provision of this Section or any rule adopted
by the
Director, a car rental limited line producer pursuant to this Section is not
required to treat moneys
collected from renters purchasing insurance when renting vehicles as funds
received in a
fiduciary capacity, provided that the charges for coverage shall be itemized
and be ancillary to a
rental transaction.
(g) The sale of insurance not in conjunction with a rental transaction shall
not be
permitted.
(h) A car rental limited line producer under this Section may not advertise,
represent,
or otherwise hold itself or any of its employees out as licensed insurers,
insurance producers,
insurance agents, or insurance brokers.
(i) Direct commissions may not be paid to rental car company employees by
the
insurer or the customer purchasing insurance products. The rental car company
may include
insurance products in an overall employee performance compensation incentive
program.
(j) An application for a car rental limited line license must be made on a
form
specified by the Director.
(Source: P.A. 92-386, eff. 1-1-02 .)
|