S-2324               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5148

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Rasmussen, Johnson, Smitherman, McCaslin and Moore)

Read first time 3/1/89.

AN ACT Relating to collision damage waiver agreements; and adding a new chapter to Title 19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that improper practices, charges, and provisions may be associated with the sale of collision damage waiver agreements by car rental companies in this state.  A collision damage waiver agreement is a contract provision within a car rental contract in which the car rental company waives its right, for a fee, to hold a renter liable for damages to a rented vehicle.  The legislature further finds that these agreements may violate an individual's rights.  The citizens of the state of Washington would be benefited by increased information concerning these waivers.

NEW SECTION. Sec. 2.     For the purposes of this chapter, the following definitions apply:

          (1)  "Rental company" means any person or entity in the business of providing rental motor vehicles to the public.

          (2)  "Renter" means any person or entity obtaining the use of a rental motor vehicle from a rental company for a period of less than thirty days.

          (3)  "Damage waiver" means a rental company's agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.

          (4)  "Rental motor vehicle" or "vehicles" means a motor vehicle as defined in RCW 46.04.382 which is rented or leased or offered for rent or lease in this state.

NEW SECTION. Sec. 3.     (1)  A rental company that offers or provides a damage waiver for any consideration in addition to the rental rate shall clearly and conspicuously disclose the following information on a separate page attached to the rental contract and in signs posted at the place where the renter signs the rental contract:

          (a)  The nature of the renter's liability, including but not limited to liability for all collision damage regardless of cause;

          (b)  The extent of the renter's liability, including but not limited to liability for damage or loss up to a specific amount;

          (c)  That the renter's personal insurance policy may provide coverage for all or a portion of the renter's potential liability;

          (d)  That the renter should consult with his or her insurer to determine the scope of the renter's insurance coverage; and

          (e)  That the renter may purchase an optional damage waiver to cover all liability subject to the exceptions that the rental company expressly lists and the circumstances in which the damage waiver does not apply.

          (2) The disclosures required by this chapter shall be set in black-faced type of at least ten-point body or size.

          (3) The renter shall initial the page prescribed under subsection (1) of this section to indicate actual receipt of the disclosures.

NEW SECTION. Sec. 4.     Sections 2 and 3 of this act shall constitute a new chapter in Title 19 RCW.