1758.8. (a) No rental car company shall offer or sell insurance
unless it is licensed as an insurance agent or broker pursuant to
Article 3 (commencing with Section 1631) or has complied with the
requirements of this article and has been issued a license by the
commissioner as provided in this article.
(b) The commissioner may issue to a rental car company, or to a
franchisee of a rental car company, that has complied with the
requirements of this article, a license that authorizes the rental
car company or the franchisee of a rental car company to act as a
rental car agent to offer or sell those types of insurance specified
in Section 1758.85, in connection with and incidental to rental
agreements, on behalf of any insurer authorized to write those types
of insurance in this state.
1758.81. (a) An applicant for a rental car agent license under this
article shall file the following documents with the commissioner:
(1) A written application for licensure, signed by the applicant
or an officer of the applicant, in the form prescribed by the
commissioner.
(2) A certificate by the insurer that is to be named in the rental
car agent license, stating that the insurer has satisfied itself
that the named applicant is trustworthy and competent to act as its
insurance agent limited to this purpose and that the insurer will
appoint the applicant to act as its agent to transact the kind or
kinds of insurance that are permitted by this article, if the rental
car agent license applied for is issued by the commissioner. The
certification shall be subscribed by an officer or managing agent of
the insurer on a form prescribed by the commissioner.
(3) An application fee, and each license period thereafter, a
renewal fee, in an amount or amounts determined by the department as
sufficient to defray the department's actual cost of processing the
application or renewal and implementing this article.
(4) Not less than 60 days before a permanent license will expire,
the commissioner may use an electronic delivery method, including
e-mail or other similar electronic method of delivery, to deliver, or
may mail, to the latest e-mail or mailing address appearing on his
or her records, an application to the licensee to renew the license
for the appropriate succeeding license period. It is the licensee's
responsibility to renew whether or not a renewal application is
received. The commissioner may accept a late renewal without a
penalty, provided the licensee's failure to comply is due to clerical
error or inadvertence on the part of the department.
(A) The application for renewal of a license shall be filed on or
before the expiration date.
(B) The application for renewal of an expired license may be filed
after the expiration date and until that same month and day of the
next succeeding year. A licensee who files the renewal application
after the license has expired shall be charged, in addition to the
renewal fee, a penalty of 50 percent of the renewal fee.
(b) Notwithstanding any other provision of law to the contrary,
Sections 1667, 1668, 1668.5, 1669, 1670, 1720, 1738, and 1739 apply
to any application for or issuance of a license pursuant to this
article.
(c) Costs associated with any enforcement action or investigation
shall be paid for by the person or organization licensed pursuant to
this article.
1758.82. (a) An employee of a rental car company or franchisee of a
rental car company that has been issued a rental car agent license
pursuant to this article may be an endorsee authorized to offer
insurance products under the authority of the rental car agent
license if all of the following conditions have been met:
(1) The employee is 18 years of age or older.
(2) The rental car company, at the time it submits its rental car
agent license application pursuant to Section 1758.81, also
establishes a list of the names of all endorsees to its rental car
agent license. The list shall be maintained by the rental car company
in a form prescribed by the commissioner and updated annually. The
list shall be retained by the rental car company for three years and
made available to the commissioner for review and inspection.
(3) The rental car company submits to the commissioner with its
initial rental car agent license application and annually thereafter
a certification, subscribed by an officer of the company on a form
prescribed by the commissioner, stating all of the following:
(A) The number of endorsees offering insurance products under the
authority of the rental car agent license for the applicable period.
(B) A statement that no person other than an endorsee sells or
offers insurance on its behalf.
(C) That all endorsees have completed training as required by this
article.
(b) Each rental car company licensed pursuant to this article
shall provide for the training of its endorsees prior to allowing its
endorsees to offer or sell insurance products. The training shall
meet the following minimum standards:
(1) Each rental car endorsee shall receive instruction about the
types of insurance specified in Section 1758.85 that are offered for
sale to prospective renters.
(2) Each rental car endorsee shall receive training about ethical
sales practices.
(3) Each rental car endorsee shall receive training about the
disclosures to be given to prospective renters pursuant to
subdivision (c) of Section 1758.86.
(c) Training materials used by or on behalf of the rental car
company to train its endorsees shall be submitted to the department
at the time the rental car company applies for a license under this
article, and whenever modified thereafter. Any changes to previously
submitted training materials shall be submitted to the department
with the changes highlighted 30 days prior to their use by the
licensee. Training materials and changes to those materials submitted
to the department pursuant to this subdivision shall be deemed
approved for use by the company unless it is notified by the
department to the contrary. Failure by a rental car company to submit
training materials or changes for departmental review or use of
unapproved or disapproved training materials shall constitute grounds
for denial of an application for a license, nonrenewal of a license,
or suspension of a license, as appropriate.
(d) The rental car company shall periodically retrain its
endorsees on the subject matter described in subdivision (b), as
prescribed by the commissioner.
1758.83. (a) The manager at each location of a rental car company
or a franchisee of a rental car company licensed pursuant to this
article, or the direct supervisor of the company's endorsees at each
location or region shall be an endorsee and shall be responsible for
the supervision of each additional endorsee at that location or
region. Each licensee shall identify the endorsee who is the manager
or supervisor at each location for the purposes of this article.
(b) An endorsee may act on behalf and under the supervision of the
rental car agent in matters relating to transacting insurance under
that agent's license. The conduct of an endorsee of a rental car
agent acting within the scope of employment or agency shall be deemed
the conduct of the rental car agent for purposes of this article.
1758.84. (a) If a licensee or endorsee violates any provision of
this article or any other provision of this code, the commissioner
may do any of the following:
(1) After notice and hearing, suspend or revoke the license of the
rental car agent.
(2) After notice and hearing impose fines on the rental car agent
for its conduct or that of its endorsees.
(3) After notice and hearing, impose other penalties, that the
commissioner deems necessary and convenient to carry out the purpose
of this code, including suspending the privilege of transacting
insurance at specific rental locations where violations have
occurred, and suspending or revoking the endorsement of individual
endorsees or manager endorsees.
(b) If any person sells insurance in connection with, or
incidental to, rental car agreements or holds himself or herself or
an organization out as a rental car agent without obtaining the
license required by this article, or as being an endorsee when that
person is not an endorsee, or as being licensed pursuant to Chapter 5
(commencing with Section 1631) without obtaining that license, the
commissioner may issue a cease and desist order pursuant to Section
12921.8.
(c) Notwithstanding any other provision of law to the contrary,
the provisions of Section 1748.5 are applicable to both the rental
car agent and any endorsee to the license of the rental car agent.
1758.85. A rental car company or franchisee licensed under this
article may act as a rental car agent for an authorized insurer only
in connection with the rental of vehicles and only with respect to
the following kinds of insurance:
(a) Personal accident insurance for renters and other rental
vehicle occupants, for accidental death or dismemberment, and for
medical expenses resulting from an accident that occurs with the
rental vehicle during the rental period.
(b) Liability insurance, which may include uninsured motorist
coverage, whether offered separately or in combination with other
liability insurance, that provides coverage to the renters and to
other authorized drivers of a rental vehicle and is nonduplicative of
any standard liability coverage or self-insurance limits provided by
the rental company in its rental agreement, for liability arising
from the negligent operation of the rental vehicle during the rental
period.
(c) Personal effects insurance that provides coverage to renters
and other vehicle occupants for loss of, or damage to, personal
effects in the rental vehicle during the rental period.
(d) Roadside assistance insurance.
(e) Emergency sickness insurance.
1758.851. The insurance products listed in Section 1758.85 that are
sold in conjunction with a vehicle rental are not transferable and
do not apply to any vehicle not listed in the rental contract issued.
1758.86. A rental car agent shall not sell insurance pursuant to
this article unless all of the following conditions are satisfied:
(a) The rental period of the rental agreement does not exceed 30
consecutive days, except for any renewals or extension of the
original rental period.
(b) The rental car agent provides brochures or other written
materials to the prospective renter that do all of the following:
(1) Summarize the material terms and conditions of coverage
offered to renters, including the identity of the insurer.
(2) Describe the process for filing a claim, including a toll-free
telephone number to report a claim.
(3) Disclose any additional information on the price, benefits,
exclusions, conditions, or other limitations of those policies that
the commissioner may by rule prescribe.
(4) Provide the licensee's name, address, telephone number, and
license number, as well as the availability of the department's
toll-free consumer hotline.
(c) The rental car agent or its endorsee makes all of the
following disclosures to the renter, which shall be acknowledged in
writing by the renter, or displayed by clear and conspicuous signs
that are posted at every location where rental agreements are
executed, such as the counter where the renter signs the rental
agreement:
(1) That the purchase by the renter of the kinds of insurance
prescribed in this article is not required in order to rent a
vehicle.
(2) That the insurance policies offered by the rental car agent
may provide a duplication of coverage already provided by a renter's
personal automobile insurance policy or by another source of
coverage.
(3) That the endorsee on the rental car agent's license is not
qualified or authorized to evaluate the adequacy of the purchaser's
existing insurance coverages.
(d) Evidence of coverage is stated on the face of the rental
agreement or evidence of coverages provided to every renter who
elects to purchase that coverage is indicated to the renter.
(e) The insurance is provided under an individual policy issued to
the purchaser, or under a group, or master policy issued to an
organization licensed as a rental car agent by an insurer authorized
to transact the applicable kinds or types of insurance in this state.
1758.861. A licensee shall not be required to treat moneys
collected from renters purchasing insurance, pursuant to this
article, as funds received in a fiduciary capacity if the insurer
represented by the licensee has provided in writing that the funds
need not be segregated from funds received by the rental car company
on account of vehicle rental and the charges for insurance coverage
are itemized and incorporated as part of the rental agreement.
1758.87. A rental car agent shall not do any of the following:
(a) Offer to sell insurance except in conjunction with, and
incidental to, authorized rental agreements.
(b) Advertise, represent, or otherwise portray itself or its
employees or endorsees as licensed insurers, life agents, or fire and
casualty broker-agents.
(c) Pay an endorsee any compensation, fee, or commission dependent
on the placement of insurance under the agent's license. Nothing in
this code shall prohibit the payment of a "performance-related
incentive." For the purposes of this subdivision, a
"performance-related incentive" is not a commission as otherwise
defined. A "performance-related incentive" is money or other tangible
or intangible items of value paid or given to any endorsee of the
licensee which is not based solely on the offering or selling of the
insurance products listed in Section 1758.85.
1758.88. Any insurer that provides insurance to be sold by a rental
car company or franchisee of a rental car company under this article
shall file a copy of any individual policy issued to a purchaser, or
any policy or certificate issued under a group or master policy to
an organization licensed as a rental car agent, with the
commissioner, who shall make that policy available to the public.
1758.89. As used in this article, the following definitions have
the following meanings:
(a) (1) "License period" means all of that two-year period
beginning as described in subparagraph (A) or (B) of paragraph (2),
as applicable, and ending the second succeeding year on the last
calendar day of the month in which the initial license was issued.
(2) A license period shall be determined for each person as
follows:
(A) Upon initial licensing, the license period starts on the date
the license is issued.
(B) Subsequently, the license period starts the first day of the
month following the month in which the initial license was issued.
(3) A license is required to be renewed on or before the
expiration date of the license period.
(b) "Rental vehicle" or "vehicle" means a motor vehicle operated
by a driver who is not required to possess a commercial driver's
license to operate the motor vehicle and the motor vehicle is either
of the following:
(1) A private passenger motor vehicle, including a passenger van,
minivan, or sports utility vehicle.
(2) A cargo vehicle, including a cargo van, pickup truck, or truck
with a gross vehicle weight of less than 26,000 pounds.
(c) "Renter" means any person who obtains the use of a vehicle
from a rental car company under the terms of a rental agreement.
(d) "Rental car company" means any person in the business of
renting vehicles to the public.
(e) "Rental agreement" means any written agreement setting forth
the terms and conditions governing the use of a vehicle provided by
the rental car company.
(f) "Rental car agent" means a person or organization licensed
pursuant to this article to offer insurance in connection with and
incidental to rental car agreements on behalf of an insurer
authorized to write those types of insurance in this state.
(g) "Endorsee" means an unlicensed employee of a rental car agent
who meets the requirements of this article.
1758.891. Until January 1, 2001, a rental car company or a
franchisee of a rental car company shall not be required to obtain a
license to offer the insurance products described in Section 1758.85.
1758.8. (a) No rental car company shall offer or sell insurance
unless it is licensed as an insurance agent or broker pursuant to
Article 3 (commencing with Section 1631) or has complied with the
requirements of this article and has been issued a license by the
commissioner as provided in this article.
(b) The commissioner may issue to a rental car company, or to a
franchisee of a rental car company, that has complied with the
requirements of this article, a license that authorizes the rental
car company or the franchisee of a rental car company to act as a
rental car agent to offer or sell those types of insurance specified
in Section 1758.85, in connection with and incidental to rental
agreements, on behalf of any insurer authorized to write those types
of insurance in this state.
1758.81. (a) An applicant for a rental car agent license under this
article shall file the following documents with the commissioner:
(1) A written application for licensure, signed by the applicant
or an officer of the applicant, in the form prescribed by the
commissioner.
(2) A certificate by the insurer that is to be named in the rental
car agent license, stating that the insurer has satisfied itself
that the named applicant is trustworthy and competent to act as its
insurance agent limited to this purpose and that the insurer will
appoint the applicant to act as its agent to transact the kind or
kinds of insurance that are permitted by this article, if the rental
car agent license applied for is issued by the commissioner. The
certification shall be subscribed by an officer or managing agent of
the insurer on a form prescribed by the commissioner.
(3) An application fee, and each license period thereafter, a
renewal fee, in an amount or amounts determined by the department as
sufficient to defray the department's actual cost of processing the
application or renewal and implementing this article.
(4) Not less than 60 days before a permanent license will expire,
the commissioner may use an electronic delivery method, including
e-mail or other similar electronic method of delivery, to deliver, or
may mail, to the latest e-mail or mailing address appearing on his
or her records, an application to the licensee to renew the license
for the appropriate succeeding license period. It is the licensee's
responsibility to renew whether or not a renewal application is
received. The commissioner may accept a late renewal without a
penalty, provided the licensee's failure to comply is due to clerical
error or inadvertence on the part of the department.
(A) The application for renewal of a license shall be filed on or
before the expiration date.
(B) The application for renewal of an expired license may be filed
after the expiration date and until that same month and day of the
next succeeding year. A licensee who files the renewal application
after the license has expired shall be charged, in addition to the
renewal fee, a penalty of 50 percent of the renewal fee.
(b) Notwithstanding any other provision of law to the contrary,
Sections 1667, 1668, 1668.5, 1669, 1670, 1720, 1738, and 1739 apply
to any application for or issuance of a license pursuant to this
article.
(c) Costs associated with any enforcement action or investigation
shall be paid for by the person or organization licensed pursuant to
this article.
1758.82. (a) An employee of a rental car company or franchisee of a
rental car company that has been issued a rental car agent license
pursuant to this article may be an endorsee authorized to offer
insurance products under the authority of the rental car agent
license if all of the following conditions have been met:
(1) The employee is 18 years of age or older.
(2) The rental car company, at the time it submits its rental car
agent license application pursuant to Section 1758.81, also
establishes a list of the names of all endorsees to its rental car
agent license. The list shall be maintained by the rental car company
in a form prescribed by the commissioner and updated annually. The
list shall be retained by the rental car company for three years and
made available to the commissioner for review and inspection.
(3) The rental car company submits to the commissioner with its
initial rental car agent license application and annually thereafter
a certification, subscribed by an officer of the company on a form
prescribed by the commissioner, stating all of the following:
(A) The number of endorsees offering insurance products under the
authority of the rental car agent license for the applicable period.
(B) A statement that no person other than an endorsee sells or
offers insurance on its behalf.
(C) That all endorsees have completed training as required by this
article.
(b) Each rental car company licensed pursuant to this article
shall provide for the training of its endorsees prior to allowing its
endorsees to offer or sell insurance products. The training shall
meet the following minimum standards:
(1) Each rental car endorsee shall receive instruction about the
types of insurance specified in Section 1758.85 that are offered for
sale to prospective renters.
(2) Each rental car endorsee shall receive training about ethical
sales practices.
(3) Each rental car endorsee shall receive training about the
disclosures to be given to prospective renters pursuant to
subdivision (c) of Section 1758.86.
(c) Training materials used by or on behalf of the rental car
company to train its endorsees shall be submitted to the department
at the time the rental car company applies for a license under this
article, and whenever modified thereafter. Any changes to previously
submitted training materials shall be submitted to the department
with the changes highlighted 30 days prior to their use by the
licensee. Training materials and changes to those materials submitted
to the department pursuant to this subdivision shall be deemed
approved for use by the company unless it is notified by the
department to the contrary. Failure by a rental car company to submit
training materials or changes for departmental review or use of
unapproved or disapproved training materials shall constitute grounds
for denial of an application for a license, nonrenewal of a license,
or suspension of a license, as appropriate.
(d) The rental car company shall periodically retrain its
endorsees on the subject matter described in subdivision (b), as
prescribed by the commissioner.
1758.83. (a) The manager at each location of a rental car company
or a franchisee of a rental car company licensed pursuant to this
article, or the direct supervisor of the company's endorsees at each
location or region shall be an endorsee and shall be responsible for
the supervision of each additional endorsee at that location or
region. Each licensee shall identify the endorsee who is the manager
or supervisor at each location for the purposes of this article.
(b) An endorsee may act on behalf and under the supervision of the
rental car agent in matters relating to transacting insurance under
that agent's license. The conduct of an endorsee of a rental car
agent acting within the scope of employment or agency shall be deemed
the conduct of the rental car agent for purposes of this article.
1758.84. (a) If a licensee or endorsee violates any provision of
this article or any other provision of this code, the commissioner
may do any of the following:
(1) After notice and hearing, suspend or revoke the license of the
rental car agent.
(2) After notice and hearing impose fines on the rental car agent
for its conduct or that of its endorsees.
(3) After notice and hearing, impose other penalties, that the
commissioner deems necessary and convenient to carry out the purpose
of this code, including suspending the privilege of transacting
insurance at specific rental locations where violations have
occurred, and suspending or revoking the endorsement of individual
endorsees or manager endorsees.
(b) If any person sells insurance in connection with, or
incidental to, rental car agreements or holds himself or herself or
an organization out as a rental car agent without obtaining the
license required by this article, or as being an endorsee when that
person is not an endorsee, or as being licensed pursuant to Chapter 5
(commencing with Section 1631) without obtaining that license, the
commissioner may issue a cease and desist order pursuant to Section
12921.8.
(c) Notwithstanding any other provision of law to the contrary,
the provisions of Section 1748.5 are applicable to both the rental
car agent and any endorsee to the license of the rental car agent.
1758.85. A rental car company or franchisee licensed under this
article may act as a rental car agent for an authorized insurer only
in connection with the rental of vehicles and only with respect to
the following kinds of insurance:
(a) Personal accident insurance for renters and other rental
vehicle occupants, for accidental death or dismemberment, and for
medical expenses resulting from an accident that occurs with the
rental vehicle during the rental period.
(b) Liability insurance, which may include uninsured motorist
coverage, whether offered separately or in combination with other
liability insurance, that provides coverage to the renters and to
other authorized drivers of a rental vehicle and is nonduplicative of
any standard liability coverage or self-insurance limits provided by
the rental company in its rental agreement, for liability arising
from the negligent operation of the rental vehicle during the rental
period.
(c) Personal effects insurance that provides coverage to renters
and other vehicle occupants for loss of, or damage to, personal
effects in the rental vehicle during the rental period.
(d) Roadside assistance insurance.
(e) Emergency sickness insurance.
1758.851. The insurance products listed in Section 1758.85 that are
sold in conjunction with a vehicle rental are not transferable and
do not apply to any vehicle not listed in the rental contract issued.
1758.86. A rental car agent shall not sell insurance pursuant to
this article unless all of the following conditions are satisfied:
(a) The rental period of the rental agreement does not exceed 30
consecutive days, except for any renewals or extension of the
original rental period.
(b) The rental car agent provides brochures or other written
materials to the prospective renter that do all of the following:
(1) Summarize the material terms and conditions of coverage
offered to renters, including the identity of the insurer.
(2) Describe the process for filing a claim, including a toll-free
telephone number to report a claim.
(3) Disclose any additional information on the price, benefits,
exclusions, conditions, or other limitations of those policies that
the commissioner may by rule prescribe.
(4) Provide the licensee's name, address, telephone number, and
license number, as well as the availability of the department's
toll-free consumer hotline.
(c) The rental car agent or its endorsee makes all of the
following disclosures to the renter, which shall be acknowledged in
writing by the renter, or displayed by clear and conspicuous signs
that are posted at every location where rental agreements are
executed, such as the counter where the renter signs the rental
agreement:
(1) That the purchase by the renter of the kinds of insurance
prescribed in this article is not required in order to rent a
vehicle.
(2) That the insurance policies offered by the rental car agent
may provide a duplication of coverage already provided by a renter's
personal automobile insurance policy or by another source of
coverage.
(3) That the endorsee on the rental car agent's license is not
qualified or authorized to evaluate the adequacy of the purchaser's
existing insurance coverages.
(d) Evidence of coverage is stated on the face of the rental
agreement or evidence of coverages provided to every renter who
elects to purchase that coverage is indicated to the renter.
(e) The insurance is provided under an individual policy issued to
the purchaser, or under a group, or master policy issued to an
organization licensed as a rental car agent by an insurer authorized
to transact the applicable kinds or types of insurance in this state.
1758.861. A licensee shall not be required to treat moneys
collected from renters purchasing insurance, pursuant to this
article, as funds received in a fiduciary capacity if the insurer
represented by the licensee has provided in writing that the funds
need not be segregated from funds received by the rental car company
on account of vehicle rental and the charges for insurance coverage
are itemized and incorporated as part of the rental agreement.
1758.87. A rental car agent shall not do any of the following:
(a) Offer to sell insurance except in conjunction with, and
incidental to, authorized rental agreements.
(b) Advertise, represent, or otherwise portray itself or its
employees or endorsees as licensed insurers, life agents, or fire and
casualty broker-agents.
(c) Pay an endorsee any compensation, fee, or commission dependent
on the placement of insurance under the agent's license. Nothing in
this code shall prohibit the payment of a "performance-related
incentive." For the purposes of this subdivision, a
"performance-related incentive" is not a commission as otherwise
defined. A "performance-related incentive" is money or other tangible
or intangible items of value paid or given to any endorsee of the
licensee which is not based solely on the offering or selling of the
insurance products listed in Section 1758.85.
1758.88. Any insurer that provides insurance to be sold by a rental
car company or franchisee of a rental car company under this article
shall file a copy of any individual policy issued to a purchaser, or
any policy or certificate issued under a group or master policy to
an organization licensed as a rental car agent, with the
commissioner, who shall make that policy available to the public.
1758.89. As used in this article, the following definitions have
the following meanings:
(a) (1) "License period" means all of that two-year period
beginning as described in subparagraph (A) or (B) of paragraph (2),
as applicable, and ending the second succeeding year on the last
calendar day of the month in which the initial license was issued.
(2) A license period shall be determined for each person as
follows:
(A) Upon initial licensing, the license period starts on the date
the license is issued.
(B) Subsequently, the license period starts the first day of the
month following the month in which the initial license was issued.
(3) A license is required to be renewed on or before the
expiration date of the license period.
(b) "Rental vehicle" or "vehicle" means a motor vehicle operated
by a driver who is not required to possess a commercial driver's
license to operate the motor vehicle and the motor vehicle is either
of the following:
(1) A private passenger motor vehicle, including a passenger van,
minivan, or sports utility vehicle.
(2) A cargo vehicle, including a cargo van, pickup truck, or truck
with a gross vehicle weight of less than 26,000 pounds.
(c) "Renter" means any person who obtains the use of a vehicle
from a rental car company under the terms of a rental agreement.
(d) "Rental car company" means any person in the business of
renting vehicles to the public.
(e) "Rental agreement" means any written agreement setting forth
the terms and conditions governing the use of a vehicle provided by
the rental car company.
(f) "Rental car agent" means a person or organization licensed
pursuant to this article to offer insurance in connection with and
incidental to rental car agreements on behalf of an insurer
authorized to write those types of insurance in this state.
(g) "Endorsee" means an unlicensed employee of a rental car agent
who meets the requirements of this article.
1758.891. Until January 1, 2001, a rental car company or a
franchisee of a rental car company shall not be required to obtain a
license to offer the insurance products described in Section 1758.85.
1758.8. (a) No rental car company shall offer or sell insurance
unless it is licensed as an insurance agent or broker pursuant to
Article 3 (commencing with Section 1631) or has complied with the
requirements of this article and has been issued a license by the
commissioner as provided in this article.
(b) The commissioner may issue to a rental car company, or to a
franchisee of a rental car company, that has complied with the
requirements of this article, a license that authorizes the rental
car company or the franchisee of a rental car company to act as a
rental car agent to offer or sell those types of insurance specified
in Section 1758.85, in connection with and incidental to rental
agreements, on behalf of any insurer authorized to write those types
of insurance in this state.
1758.81. (a) An applicant for a rental car agent license under this
article shall file the following documents with the commissioner:
(1) A written application for licensure, signed by the applicant
or an officer of the applicant, in the form prescribed by the
commissioner.
(2) A certificate by the insurer that is to be named in the rental
car agent license, stating that the insurer has satisfied itself
that the named applicant is trustworthy and competent to act as its
insurance agent limited to this purpose and that the insurer will
appoint the applicant to act as its agent to transact the kind or
kinds of insurance that are permitted by this article, if the rental
car agent license applied for is issued by the commissioner. The
certification shall be subscribed by an officer or managing agent of
the insurer on a form prescribed by the commissioner.
(3) An application fee, and each license period thereafter, a
renewal fee, in an amount or amounts determined by the department as
sufficient to defray the department's actual cost of processing the
application or renewal and implementing this article.
(4) Not less than 60 days before a permanent license will expire,
the commissioner may use an electronic delivery method, including
e-mail or other similar electronic method of delivery, to deliver, or
may mail, to the latest e-mail or mailing address appearing on his
or her records, an application to the licensee to renew the license
for the appropriate succeeding license period. It is the licensee's
responsibility to renew whether or not a renewal application is
received. The commissioner may accept a late renewal without a
penalty, provided the licensee's failure to comply is due to clerical
error or inadvertence on the part of the department.
(A) The application for renewal of a license shall be filed on or
before the expiration date.
(B) The application for renewal of an expired license may be filed
after the expiration date and until that same month and day of the
next succeeding year. A licensee who files the renewal application
after the license has expired shall be charged, in addition to the
renewal fee, a penalty of 50 percent of the renewal fee.
(b) Notwithstanding any other provision of law to the contrary,
Sections 1667, 1668, 1668.5, 1669, 1670, 1720, 1738, and 1739 apply
to any application for or issuance of a license pursuant to this
article.
(c) Costs associated with any enforcement action or investigation
shall be paid for by the person or organization licensed pursuant to
this article.
1758.82. (a) An employee of a rental car company or franchisee of a
rental car company that has been issued a rental car agent license
pursuant to this article may be an endorsee authorized to offer
insurance products under the authority of the rental car agent
license if all of the following conditions have been met:
(1) The employee is 18 years of age or older.
(2) The rental car company, at the time it submits its rental car
agent license application pursuant to Section 1758.81, also
establishes a list of the names of all endorsees to its rental car
agent license. The list shall be maintained by the rental car company
in a form prescribed by the commissioner and updated annually. The
list shall be retained by the rental car company for three years and
made available to the commissioner for review and inspection.
(3) The rental car company submits to the commissioner with its
initial rental car agent license application and annually thereafter
a certification, subscribed by an officer of the company on a form
prescribed by the commissioner, stating all of the following:
(A) The number of endorsees offering insurance products under the
authority of the rental car agent license for the applicable period.
(B) A statement that no person other than an endorsee sells or
offers insurance on its behalf.
(C) That all endorsees have completed training as required by this
article.
(b) Each rental car company licensed pursuant to this article
shall provide for the training of its endorsees prior to allowing its
endorsees to offer or sell insurance products. The training shall
meet the following minimum standards:
(1) Each rental car endorsee shall receive instruction about the
types of insurance specified in Section 1758.85 that are offered for
sale to prospective renters.
(2) Each rental car endorsee shall receive training about ethical
sales practices.
(3) Each rental car endorsee shall receive training about the
disclosures to be given to prospective renters pursuant to
subdivision (c) of Section 1758.86.
(c) Training materials used by or on behalf of the rental car
company to train its endorsees shall be submitted to the department
at the time the rental car company applies for a license under this
article, and whenever modified thereafter. Any changes to previously
submitted training materials shall be submitted to the department
with the changes highlighted 30 days prior to their use by the
licensee. Training materials and changes to those materials submitted
to the department pursuant to this subdivision shall be deemed
approved for use by the company unless it is notified by the
department to the contrary. Failure by a rental car company to submit
training materials or changes for departmental review or use of
unapproved or disapproved training materials shall constitute grounds
for denial of an application for a license, nonrenewal of a license,
or suspension of a license, as appropriate.
(d) The rental car company shall periodically retrain its
endorsees on the subject matter described in subdivision (b), as
prescribed by the commissioner.
1758.83. (a) The manager at each location of a rental car company
or a franchisee of a rental car company licensed pursuant to this
article, or the direct supervisor of the company's endorsees at each
location or region shall be an endorsee and shall be responsible for
the supervision of each additional endorsee at that location or
region. Each licensee shall identify the endorsee who is the manager
or supervisor at each location for the purposes of this article.
(b) An endorsee may act on behalf and under the supervision of the
rental car agent in matters relating to transacting insurance under
that agent's license. The conduct of an endorsee of a rental car
agent acting within the scope of employment or agency shall be deemed
the conduct of the rental car agent for purposes of this article.
1758.84. (a) If a licensee or endorsee violates any provision of
this article or any other provision of this code, the commissioner
may do any of the following:
(1) After notice and hearing, suspend or revoke the license of the
rental car agent.
(2) After notice and hearing impose fines on the rental car agent
for its conduct or that of its endorsees.
(3) After notice and hearing, impose other penalties, that the
commissioner deems necessary and convenient to carry out the purpose
of this code, including suspending the privilege of transacting
insurance at specific rental locations where violations have
occurred, and suspending or revoking the endorsement of individual
endorsees or manager endorsees.
(b) If any person sells insurance in connection with, or
incidental to, rental car agreements or holds himself or herself or
an organization out as a rental car agent without obtaining the
license required by this article, or as being an endorsee when that
person is not an endorsee, or as being licensed pursuant to Chapter 5
(commencing with Section 1631) without obtaining that license, the
commissioner may issue a cease and desist order pursuant to Section
12921.8.
(c) Notwithstanding any other provision of law to the contrary,
the provisions of Section 1748.5 are applicable to both the rental
car agent and any endorsee to the license of the rental car agent.
1758.85. A rental car company or franchisee licensed under this
article may act as a rental car agent for an authorized insurer only
in connection with the rental of vehicles and only with respect to
the following kinds of insurance:
(a) Personal accident insurance for renters and other rental
vehicle occupants, for accidental death or dismemberment, and for
medical expenses resulting from an accident that occurs with the
rental vehicle during the rental period.
(b) Liability insurance, which may include uninsured motorist
coverage, whether offered separately or in combination with other
liability insurance, that provides coverage to the renters and to
other authorized drivers of a rental vehicle and is nonduplicative of
any standard liability coverage or self-insurance limits provided by
the rental company in its rental agreement, for liability arising
from the negligent operation of the rental vehicle during the rental
period.
(c) Personal effects insurance that provides coverage to renters
and other vehicle occupants for loss of, or damage to, personal
effects in the rental vehicle during the rental period.
(d) Roadside assistance insurance.
(e) Emergency sickness insurance.
1758.851. The insurance products listed in Section 1758.85 that are
sold in conjunction with a vehicle rental are not transferable and
do not apply to any vehicle not listed in the rental contract issued.
1758.86. A rental car agent shall not sell insurance pursuant to
this article unless all of the following conditions are satisfied:
(a) The rental period of the rental agreement does not exceed 30
consecutive days, except for any renewals or extension of the
original rental period.
(b) The rental car agent provides brochures or other written
materials to the prospective renter that do all of the following:
(1) Summarize the material terms and conditions of coverage
offered to renters, including the identity of the insurer.
(2) Describe the process for filing a claim, including a toll-free
telephone number to report a claim.
(3) Disclose any additional information on the price, benefits,
exclusions, conditions, or other limitations of those policies that
the commissioner may by rule prescribe.
(4) Provide the licensee's name, address, telephone number, and
license number, as well as the availability of the department's
toll-free consumer hotline.
(c) The rental car agent or its endorsee makes all of the
following disclosures to the renter, which shall be acknowledged in
writing by the renter, or displayed by clear and conspicuous signs
that are posted at every location where rental agreements are
executed, such as the counter where the renter signs the rental
agreement:
(1) That the purchase by the renter of the kinds of insurance
prescribed in this article is not required in order to rent a
vehicle.
(2) That the insurance policies offered by the rental car agent
may provide a duplication of coverage already provided by a renter's
personal automobile insurance policy or by another source of
coverage.
(3) That the endorsee on the rental car agent's license is not
qualified or authorized to evaluate the adequacy of the purchaser's
existing insurance coverages.
(d) Evidence of coverage is stated on the face of the rental
agreement or evidence of coverages provided to every renter who
elects to purchase that coverage is indicated to the renter.
(e) The insurance is provided under an individual policy issued to
the purchaser, or under a group, or master policy issued to an
organization licensed as a rental car agent by an insurer authorized
to transact the applicable kinds or types of insurance in this state.
1758.861. A licensee shall not be required to treat moneys
collected from renters purchasing insurance, pursuant to this
article, as funds received in a fiduciary capacity if the insurer
represented by the licensee has provided in writing that the funds
need not be segregated from funds received by the rental car company
on account of vehicle rental and the charges for insurance coverage
are itemized and incorporated as part of the rental agreement.
1758.87. A rental car agent shall not do any of the following:
(a) Offer to sell insurance except in conjunction with, and
incidental to, authorized rental agreements.
(b) Advertise, represent, or otherwise portray itself or its
employees or endorsees as licensed insurers, life agents, or fire and
casualty broker-agents.
(c) Pay an endorsee any compensation, fee, or commission dependent
on the placement of insurance under the agent's license. Nothing in
this code shall prohibit the payment of a "performance-related
incentive." For the purposes of this subdivision, a
"performance-related incentive" is not a commission as otherwise
defined. A "performance-related incentive" is money or other tangible
or intangible items of value paid or given to any endorsee of the
licensee which is not based solely on the offering or selling of the
insurance products listed in Section 1758.85.
1758.88. Any insurer that provides insurance to be sold by a rental
car company or franchisee of a rental car company under this article
shall file a copy of any individual policy issued to a purchaser, or
any policy or certificate issued under a group or master policy to
an organization licensed as a rental car agent, with the
commissioner, who shall make that policy available to the public.
1758.89. As used in this article, the following definitions have
the following meanings:
(a) (1) "License period" means all of that two-year period
beginning as described in subparagraph (A) or (B) of paragraph (2),
as applicable, and ending the second succeeding year on the last
calendar day of the month in which the initial license was issued.
(2) A license period shall be determined for each person as
follows:
(A) Upon initial licensing, the license period starts on the date
the license is issued.
(B) Subsequently, the license period starts the first day of the
month following the month in which the initial license was issued.
(3) A license is required to be renewed on or before the
expiration date of the license period.
(b) "Rental vehicle" or "vehicle" means a motor vehicle operated
by a driver who is not required to possess a commercial driver's
license to operate the motor vehicle and the motor vehicle is either
of the following:
(1) A private passenger motor vehicle, including a passenger van,
minivan, or sports utility vehicle.
(2) A cargo vehicle, including a cargo van, pickup truck, or truck
with a gross vehicle weight of less than 26,000 pounds.
(c) "Renter" means any person who obtains the use of a vehicle
from a rental car company under the terms of a rental agreement.
(d) "Rental car company" means any person in the business of
renting vehicles to the public.
(e) "Rental agreement" means any written agreement setting forth
the terms and conditions governing the use of a vehicle provided by
the rental car company.
(f) "Rental car agent" means a person or organization licensed
pursuant to this article to offer insurance in connection with and
incidental to rental car agreements on behalf of an insurer
authorized to write those types of insurance in this state.
(g) "Endorsee" means an unlicensed employee of a rental car agent
who meets the requirements of this article.
1758.891. Until January 1, 2001, a rental car company or a
franchisee of a rental car company shall not be required to obtain a
license to offer the insurance products described in Section 1758.85.
