[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB1647
New Act
215 ILCS 5/143.02 new
625 ILCS 5/6-305 from Ch. 95 1/2, par. 6-305
625 ILCS 5/6-305.2 new
625 ILCS 5/9-101 from Ch. 95 1/2, par. 9-101
625 ILCS 5/9-102 from Ch. 95 1/2, par. 9-102
625 ILCS 5/9-105 from Ch. 95 1/2, par. 9-105
Creates the Renter's Financial Responsibility and
Protection Act. Provides that a company that rents vehicles
for 30 days or less may offer a damage waiver to renters.
Provides that the person to whom the vehicle is rented must
sign the damage waiver at or before the time the rental
agreement is executed and must be given a disclosure notice.
Provides circumstances under which the damage waiver shall be
void. Provides for advertising and mandatory charge
requirements. Amends the Illinois Vehicle Code and the
Illinois Insurance Code to provide that proof of financial
responsibility shall be primary coverage for the limits of
liability, damage to property, or an injury to or death of
any person resulting from the operation of the rented motor
vehicle and personal injury protection coverage. Amends the
Vehicle Code to provide that no person who rents a private
passenger motor vehicle to another in rental agreements of 30
days or less shall hold a driver liable for any damage or
loss exceeding $1,000 (instead of $200), with exceptions.
Deletes provision prohibiting collision damage waivers.
Provides that no rental company shall require a deposit or an
advance charge against the credit card of a renter for
damages to a vehicle. Effective immediately.
LRB9004387NTmb
LRB9004387NTmb
1 AN ACT concerning rental vehicles.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Renter's Financial Responsibility and Protection Act.
6 Section 10. Definitions. As used in this Act:
7 "Rental Company" means a person or entity that rents
8 private passenger vehicles to the public for 30 days or less.
9 "Renter" means a person or entity that obtains the use of
10 a private passenger vehicle from a rental company under terms
11 of a rental agreement.
12 "Rental Agreement" means an agreement for 30 days or less
13 setting forth the terms and conditions governing the use of a
14 private passenger vehicle provided by a rental company.
15 "Authorized Driver" means: the renter; the renter's
16 spouse if the spouse is a licensed driver and satisfies the
17 rental company's minimum age requirement; the renter's
18 employer, employee, or co-worker if that person is a licensed
19 driver, satisfies the rental company's minimum age
20 requirement, and at the time of the rental is engaged in a
21 business activity with the renter; any person who is
22 expressly listed by the rental company on the rental
23 agreement as an authorized driver; and any person driving
24 directly to a medical or police facility under circumstances
25 reasonably believed to constitute an emergency and who is a
26 licensed driver.
27 "Damage Waiver" means a rental company's agreement not to
28 hold an authorized driver liable for all or a part of any
29 damage to or loss of a rented vehicle for which the renter
30 may be liable pursuant to Section 6-305.2. "Damage Waiver"
31 shall encompass within its meaning other similar terms used
-2- LRB9004387NTmb
1 by rental companies, such as "Collision Damage Waiver", "Loss
2 Damage Waiver", "Physical Damage Waiver", and the like.
3 Section 15. Prohibited practices.
4 (a) A rental company may not sell a damage waiver unless
5 the renter agrees to the damage waiver in writing at or prior
6 to the time the rental agreement is executed.
7 (b) A rental company may not void a damage waiver except
8 for one or more of the following reasons:
9 (1) The damage is caused intentionally or as a
10 result of willful, wanton, or reckless conduct.
11 (2) The damage arises out of the use of the vehicle
12 while under the influence of alcohol, drugs, a controlled
13 substance, or any other intoxicant that impairs driving
14 ability.
15 (3) The rental company entered into the rental
16 transaction based on fraudulent or materially false
17 information supplied by the renter.
18 (4) The damage arises out of the use of the vehicle
19 while engaged in the commission of a crime other than a
20 traffic infraction.
21 (5) The damage arises out of the use of the vehicle
22 to carry persons or property for hire, to push or tow
23 anything, while engaged in a speed contest, or for
24 driver's training.
25 (6) The damage arises out of the use of the vehicle
26 by a person other than an authorized driver.
27 (7) The damage arises out of the use of the vehicle
28 outside of the continental United States when that use is
29 not specifically authorized by the rental agreement.
30 (c) A rental company shall not charge more than $9 per
31 full or partial 24 hour rental day for a collision damage
32 waiver if the purchase cost of the rental vehicle, paid to
33 the dealer, is not greater than $30,000. A rental company
-3- LRB9004387NTmb
1 shall not charge more than $12 per full or partial 24 hour
2 rental day for a collision damage waiver if the purchase cost
3 of the rental vehicle, paid to the dealer, is greater than
4 $30,000.
5 Section 20. Disclosure notice and advertising
6 requirements.
7 (a) Each renter who purchases a damage waiver that is
8 not included in the base rental shall be provided the
9 following disclosure notice:
10 NOTICE: This contract offers, for an additional
11 charge, a collision damage waiver to cover your financial
12 responsibility for damage to the rental vehicle. The
13 purchase of a collision damage waiver is optional and may
14 be declined. You are advised to carefully consider
15 whether to sign this waiver if you have rental vehicle
16 collision coverage provided by your credit card or
17 collision insurance on your own vehicle. Before deciding
18 whether to purchase the collision damage waiver, you may
19 wish to determine whether your own vehicle insurance
20 affords you coverage for damage to the rental vehicle and
21 the amount of deductible under your own insurance
22 coverage.
23 (b) The disclosure notice required in subsection (a)
24 shall be made on the face of the rental agreement either by
25 stamp, label, or as part of the written contract, shall be
26 set apart in boldface type and in no smaller print than 10
27 point type, and shall include a space for the renter to
28 acknowledge his or her receipt of the notice. The contract
29 shall also include in boldface type and in no smaller print
30 than 10 point type, in simple and readable language, any
31 other conditions and exclusions applicable to the collision
32 damage waiver.
33 (c) Any rental company who states or permits to be
-4- LRB9004387NTmb
1 stated the rental cost of a rental motor vehicle in any
2 advertisement shall state conspicuously, in plain language
3 and in conjunction with the advertised rental cost of the
4 vehicle, the daily rate of the applicable collision damage
5 waiver, that the rate constitutes an additional daily charge
6 to the renter, that the collision damage waiver is optional,
7 and that prospective renters should examine their automobile
8 insurance policies for rental vehicle coverage.
9 (1) When a written advertisement, including all
10 print media, contains the statement of the rental cost of
11 a vehicle, the disclosure required by this subsection
12 shall be printed in type no less than 10 point type.
13 (2) When the video presentation of a television
14 advertisement contains the written statement of the
15 rental cost of a vehicle, the depiction of the disclosure
16 required by this subsection shall be no less than
17 one-third the size of the depiction of the rental cost.
18 (3) When a radio advertisement or the audio
19 presentation of a television advertisement contains the
20 statement of the rental cost of the vehicle, the oral
21 statement of the rental cost shall be immediately
22 accompanied by an oral statement of the disclosure
23 required by this subsection.
24 (d) Any rental company that makes any oral statement,
25 excluding telephonic communications, or written statement of
26 the rental cost of a vehicle shall disclose, in plain
27 language and in conjunction with that statement, the daily
28 rate of the applicable collision damage waiver and that the
29 rate constitutes an additional daily charge to the renter.
30 (e) Any rental company that offers the collision damage
31 waiver option to a renter shall inform the renter in posted
32 signs or in pamphlets, written in plain language, of all of
33 the information described in Sections 15 through 20. The
34 requirements of this subsection shall be deemed to be
-5- LRB9004387NTmb
1 satisfied if the rental company places the pamphlets or
2 posted signs prominently and conspicuously where the posted
3 signs and pamphlets may be easily seen or reached by renters.
4 Section 25. Mandatory charges.
5 (a) As used in this Section, "mandatory charge" means
6 any charge, surcharge, or fee in addition to the base rental
7 rate for an item or service provided in connection with the
8 rental transaction that the renter does not have the option
9 of avoiding or declining and that is not otherwise imposed by
10 law.
11 (b) A rental agreement containing any mandatory charge
12 shall prominently display and fully disclose the charge
13 separately on the face of the agreement.
14 (c) A mandatory charge shall also be prominently
15 displayed and fully disclosed in all price advertising, price
16 displays, price quotes, and price offers, including displays
17 in computerized reservation systems.
18 (d) Notwithstanding the foregoing, a rental company may
19 not impose or require the purchase of a damage waiver as a
20 mandatory charge.
21 Section 890. The Illinois Insurance Code is amended by
22 adding Section 143.02 as follows:
23 (215 ILCS 5/143.02 new)
24 Sec. 143.02. Proof of financial responsibility. Proof
25 of financial responsibility under the Illinois Vehicle Code
26 shall be primary coverage for the limits of liability, damage
27 to property, or an injury to or the death of any person
28 resulting from the operation of the rented motor vehicle and
29 personal injury protection coverage.
30 Section 900. The Illinois Vehicle Code is amended by
-6- LRB9004387NTmb
1 changing Section 6-305, 9-101, 9-102, and 9-105 and adding
2 Section 6-305.2 as follows:
3 (625 ILCS 5/6-305) (from Ch. 95 1/2, par. 6-305)
4 Sec. 6-305. Renting motor vehicle to another.
5 (a) No person shall rent a motor vehicle to any other
6 person unless the latter person, or a driver designated by a
7 nondriver with disabilities and meeting any minimum age and
8 driver's record requirements that are uniformly applied by
9 the person renting a motor vehicle, is then duly licensed
10 hereunder or, in the case of a nonresident, then duly
11 licensed under the laws of the State or country of his
12 residence unless the State or country of his residence does
13 not require that a driver be licensed.
14 (b) No person shall rent a motor vehicle to another
15 until he has inspected the drivers license of the person to
16 whom the vehicle is to be rented, or by whom it is to be
17 driven, and compared and verified the signature thereon with
18 the signature of such person written in his presence unless,
19 in the case of a nonresident, the State or country wherein
20 the nonresident resides does not require that a driver be
21 licensed.
22 (c) No person shall rent a motorcycle to another unless
23 the latter person is then duly licensed hereunder as a
24 motorcycle operator, and in the case of a nonresident, then
25 duly licensed under the laws of the State or country of his
26 residence, unless the State or country of his residence does
27 not require that a driver be licensed.
28 (d) No person who rents a private passenger motor
29 vehicle to another shall, in rental agreements of 30
30 continuous days or less, hold any authorized driver liable
31 for any damage or loss to the rented vehicle exceeding $1,000
32 $200 including loss of use and any costs and expenses
33 incident to the damage, loss or loss of use except where:
-7- LRB9004387NTmb
1 (1) the damage is caused intentionally by an
2 authorized driver or as a result of his willful or wanton
3 misconduct;
4 (2) the damage arises out of the authorized
5 driver's operation of the vehicle while intoxicated or
6 under the influence of any drugs;
7 (3) the damage is caused while the authorized
8 driver is engaged in any speed contest;
9 (4) the rental transaction is based on fraudulent
10 or false information supplied by the person to whom the
11 vehicle is rented;
12 (5) the damage arises out of the use of the vehicle
13 while committing or otherwise involved in a crime that
14 could be properly charged as a felony;
15 (6) the damage arises out of the use of the vehicle
16 to carry persons or property for hire or to push or tow
17 anything;
18 (7) the damage occurs while the vehicle is operated
19 by a person other than an authorized driver; or
20 (8) the damage arises out of the use of the vehicle
21 outside of the continental United States unless such use
22 is specifically authorized by the rental agreement.
23 (e) For the purposes of subsection (d) of this Section,
24 "authorized driver" shall mean the person to whom the vehicle
25 is rented; the renter's spouse if a licensed driver who
26 satisfies the rental company's minimum age requirement; the
27 renter's employer or co-worker if they are engaged in
28 business activity with the person to whom the vehicle is
29 rented, are licensed drivers, and satisfy the rental
30 company's minimum age requirement; any person who operates
31 the vehicle during an emergency situation or while parking
32 the vehicle at a commercial establishment; and any person
33 expressly listed by the rental company on the rental
34 agreement as an authorized driver.
-8- LRB9004387NTmb
1 (f) Any person who rents a motor vehicle to another
2 shall only advertise, quote, and charge a rental rate that
3 includes the entire amount except taxes and a mileage charge,
4 if any, which a renter must pay to hire or lease the vehicle
5 for the period of time to which the rental rate applies.
6 Such person shall not charge in addition to the rental rate,
7 taxes, and mileage charge, if any, any fee which must be paid
8 by the renter as a condition of hiring or leasing the
9 vehicle, such as, but not limited to, required fuel or
10 airport surcharges, nor any fee for transporting the renter
11 to the location where the rented vehicle will be delivered to
12 the renter. In addition to the rental rate, taxes, and
13 mileage charge, if any, such person may charge for an item or
14 service provided in connection with a particular rental
15 transaction if the renter can avoid incurring the charge by
16 choosing not to obtain or utilize the optional item or
17 service. Items and services for which such person may impose
18 an additional charge include, but are not limited to,
19 optional insurance and accessories requested by the renter,
20 unless otherwise prohibited by subsection (d) of this
21 Section, service charges incident to the renter's optional
22 return of the vehicle to a location other than the location
23 where the vehicle was hired or leased, and charges for
24 refueling the vehicle at the conclusion of the rental
25 transaction in the event the renter did not return the
26 vehicle with as much fuel as was in the fuel tank at the
27 beginning of the rental. No collision damage waiver, or any
28 other type of waiver or insurance, may be offered and sold as
29 a separate charge which would provide coverage for a
30 deductible and any of the exceptions authorized by subsection
31 (d) of this Section.
32 (g) Every person renting a motor vehicle to another
33 shall keep a record of the registration number of the motor
34 vehicle so rented, the name and address of the person to whom
-9- LRB9004387NTmb
1 the vehicle is rented, the number of the license, if any, of
2 said latter person, and the date and place when and where the
3 said license, if any, was issued. Such record shall be open
4 to inspection by any police officer or designated agent of
5 the Secretary of State.
6 (h) A person licensed as a new car dealer under Section
7 5-101 of this Code shall not be subject to the provisions of
8 this Section regarding the rental of private passenger motor
9 vehicles when providing, free of charge, temporary substitute
10 vehicles for customers to operate during a period when a
11 customer's vehicle, which is either leased or owned by that
12 customer, is being repaired, serviced, replaced or otherwise
13 made unavailable to the customer in accordance with an
14 agreement with the licensed new car dealer or vehicle
15 manufacturer, so long as the customer orally or in writing
16 is made aware that the temporary substitute vehicle will be
17 covered by his or her their insurance policy and the customer
18 shall only be liable to the extent of any amount deductible
19 from such insurance coverage in accordance with the terms of
20 the policy.
21 For purposes of subsection (d) of this Section, a person
22 licensed as a new car dealer under Section 5-101 of this Code
23 who rents a private passenger motor vehicle to another may,
24 in rental agreements of 30 continuous days or fewer, hold any
25 authorized driver liable for any damage or loss to the rental
26 vehicle for an amount not to exceed $1,000.
27 (i) This Section, except the requirements of subsection
28 (g), also applies to rental agreements of 30 continuous days
29 or less involving a motor vehicle that was delivered by an
30 out of State person or business to a renter in this State.
31 (Source: P.A. 88-661, eff. 9-16-94; 89-248, eff. 8-4-95.)
32 (625 ILCS 5/6-305.2 new)
33 Sec. 6-305.2. No deposit or advance charge against
-10- LRB9004387NTmb
1 renter's credit card. No rental company shall require a
2 deposit or an advance charge against the credit card of a
3 renter, in any form, for damages to a vehicle which is in the
4 renter's possession, custody, or control.
5 (625 ILCS 5/9-101) (from Ch. 95 1/2, par. 9-101)
6 Sec. 9-101. Owner of for-rent motor vehicle to give proof
7 of financial responsibility. For purposes of this Chapter,
8 "for rent" means any transfer of the possession of or right
9 to possession of a motor vehicle to a user for a valuable
10 consideration for a period of less than one year, and "to
11 lease" means any transfer of the possession of or right to
12 possession of a motor vehicle to a user for a period of one
13 year or more. It is unlawful for the owner of any motor
14 vehicle to engage in the business, or to hold himself out to
15 the public generally as being engaged in the business of
16 renting out such motor vehicle to be operated by the
17 customer, unless the owner has given, and there is in full
18 force and effect and on file with the Secretary of State
19 proof of financial responsibility as hereinafter provided.
20 The proof of financial responsibility shall be primary
21 coverage for the limits of liability, damage to property, or
22 an injury to or the death of any person resulting from the
23 operation of the rented motor vehicle and personal injury
24 protection coverage. The delivery of a vehicle owned by an
25 out of State person or business to a renter in this State
26 shall constitute engaging in the rental business in this
27 State for purposes of this Section.
28 All owners of motor vehicles which are leased for a
29 period of one year or more are not required to provide proof
30 of insurance as required under this chapter, but instead must
31 comply with Section 7-601 of this Code and obtain vehicle
32 insurance in amounts no less than the minimum amount set for
33 bodily injury or death and for destruction of property
-11- LRB9004387NTmb
1 pursuant to Section 7-203 of this Code.
2 (Source: P.A. 86-880; 87-1220.)
3 (625 ILCS 5/9-102) (from Ch. 95 1/2, par. 9-102)
4 Sec. 9-102. Alternate methods of giving proof of
5 financial responsibility. Proof of financial responsibility
6 when required under Section 9-101 shall be primary coverage
7 for the limits of liability, damage to property, or an injury
8 to or the death of any person resulting from the operation of
9 the rented motor vehicle and personal injury protection
10 coverage and may be given by the following methods. By filing
11 with the Secretary of State:
12 1. A bond as provided in Section 9-103.
13 2. An insurance policy or other proof of insurance in a
14 form to be prescribed by the Secretary as provided in Section
15 9-105.
16 3. A certificate of self insurance issued by the
17 Director.
18 (Source: P.A. 86-444.)
19 (625 ILCS 5/9-105) (from Ch. 95 1/2, par. 9-105)
20 Sec. 9-105. Insurance policy as proof - requirements. A
21 motor vehicle liability policy in a solvent and responsible
22 company, authorized to do business in the State of Illinois,
23 providing that the insurance carrier will pay any judgment
24 within 30 days after it becomes final, recovered against the
25 customer or against any person operating the motor vehicle
26 with the customer's express or implied consent, for damage to
27 property other than to the rented motor vehicles, or for an
28 injury to or for the death of any person, including an
29 occupant of the rented motor vehicle, resulting from the
30 operation of the motor vehicle shall serve as proof of
31 financial responsibility; provided however, every such policy
32 provides insurance insuring the operator of the rented motor
-12- LRB9004387NTmb
1 vehicle against liability upon such insured to a minimum
2 amount of $50,000 because of bodily injury to, or death of
3 any one person or damage to property and $100,000 because of
4 bodily injury to or death of 2 or more persons in any one
5 motor vehicle accident. The insurance policy shall be primary
6 for the limits of liability, damage to property, or an injury
7 to or the death of any person resulting from the operation of
8 the rented motor vehicle and personal injury.
9 (Source: P.A. 86-880.)