28-2166

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 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 coverage to any other available insurance coverage
for any damages and injury caused by a renter.

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. 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. Except as provided in paragraph 2 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 this section, owner 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 this section, "renter" includes any person operating a motor vehicle
with permission of the person who has rented it.