PERMANENT RULES
INSURANCE COMMISSIONER
Purpose: Chapter 48.115 RCW was enacted during the 2002 legislative session. This law gave the commissioner the authority to establish the processes and fees for licensure of rental car companies and their agents. The law requires licensees to pay fees necessary to defray the cost of administering the law. These new regulations establish licensure requirements and set fees. These new regulations will ensure that the employees that offer these products to the public are trained in the products they are selling. The regulations provide the necessary consumer protections in the least burdensome manner.
Statutory Authority for Adoption: RCW 48.02.060, 48.30.010, and chapter 48.115 RCW.
Adopted under notice filed as WSR 04-15-156 on July 21, 2004.
Changes Other than Editing from Proposed to Adopted Version:
• WAC 284-17B-055 was reworded for ease in understanding. Acknowledgment of brochure and written materials, the requirement to inform the renter about private insurance coverage, and transactions conducted by electronic means were moved to WAC 284-17B-060. The requirement for a statement limiting the period of the rental agreement to thirty consecutive days or less was eliminated.
• WAC 284-17B-060 was further amended to allow for acknowledgment of receipt of written materials and brochures to be in forms other than the rental agreement.
• WAC 284-17B-070 was amended to eliminate the need for resubmission of brochures if the changes are unrelated to the rental insurance.
A final cost-benefit analysis is available by contacting Kacy Scott, P.O. Box 40255, Olympia, WA 98504, phone (360) 725-7041, fax (360) 586-3109, e-mail KacyS@oic.wa.gov.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 16, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 16, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 16, Amended 0, Repealed 0.
Date Adopted: October 27, 2004.
Mike Kreidler
Insurance Commissioner
OTS-6477.9
RENTAL CAR AGENT
(1) "Endorsee" means an unlicensed employee or agent of a rental car agent who meets the requirements of this chapter.
(2) "Person" means an individual or a business entity.
(3) "Rental agreement" means any written master, corporate, group, or individual agreement setting forth the terms and conditions governing the use of a rental car rented or leased by a rental car company.
(4) "Rental car" means any motor vehicle that is intended to be rented or leased for a period of thirty consecutive days or less 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:
(a) A private passenger motor vehicle, including a passenger van, recreational vehicle, minivan, or sports utility vehicle; or
(b) A cargo vehicle, including a cargo van, pickup truck, or truck with a gross vehicle weight of less than twenty-six thousand pounds.
(5) "Rental car agent" means any rental car company that is licensed to offer, sell, or solicit rental car insurance under this chapter.
(6) "Rental car company" means any person in the business of renting rental cars to the public, including a franchisee.
(7) "Rental car insurance" means insurance offered, sold, or solicited in connection with and incidental to the rental of rental cars, whether at the rental office or by preselection of coverage in master, corporate, group, or individual agreements that is:
(a) Nontransferable;
(b) Applicable only to the rental car that is the subject of the rental agreement;
(c) Limited to the following kinds of insurance:
(i) Personal accident insurance for renters and other rental car occupants, for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs with the rental car during the rental period;
(ii) Liability insurance, including uninsured or underinsured motorist coverage, whether offered separately or in combination with other liability insurance, that provides protection to the renters and to other authorized drivers of a rental car for liability arising from the operation of the rental car during the rental period;
(iii) Personal effects insurance that provides coverage to renters and other vehicle occupants for loss of, or damage to, personal effects in the rental car during the rental period; and
(iv) Roadside assistance and emergency sickness protection insurance.
(8) "Renter" means any person who obtains the use of a vehicle from a rental car company under the terms of a rental agreement.
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(1) Be licensed under chapter 284-17 WAC; or
(2) Comply with chapter 48.115 RCW and this chapter.
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(1) A rental car agent application signed by the applicant, an officer of the applicant, or owner of the rental car-company;
(2) A copy of articles of incorporation;
(3) A certificate of good standing from the secretary of state;
(4) Underwriting insurer appointment form, INS 18;
(5) The insurer's certification form as described in RCW 48.115.015 (2)(a) signed by the appointing authority;
(6) A list of all locations in Washington identifying the manager or direct supervisor at each;
(7) A list of the names of all endorsees to its rental car agent license;
(8) Certification by the rental car company that the listed endorsees have met the training requirements in RCW 48.115.020(4) and are authorized to offer, sell, and solicit insurance in connection with the rental of vehicles as described in RCW 48.115.005(7).
(9) The training and education program and materials as described in RCW 48.115.020(4) and all brochures and other written materials provided to renters as described in RCW 48.115.025; and
(10) Initial fees:
| a. License fee for two years: | $130 for business with under 50 employees |
| $375 for business with 50 or more employees | |
| b. Appointment fee: | $20 for each underwriting insurer |
| c. Location fee: | $35 for each additional location. Location fees are not required for locations where there are no endorsees due to waiver or approved alternate arrangement under WAC 284-17B-080 |
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(2) The agent must maintain records of each transaction which allows it to identify the endorsee for one year.
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| Date Fees are Received | Fee Every Other Year |
| 50 OR MORE EMPLOYEES | |
| Prior to or on renewal date: | $375 with $35 per each additional location |
| 1-30 days late | $562.50 with $35 per each additional location |
| 31-60 days late | $749.75 with $35 per each additional location |
| 61 or more days late | New license is required |
| UNDER 50 EMPLOYEES | |
| Prior to or on renewal date: | $130 with $35 per additional location |
| 1-30 days late | $195 with $35 per each additional location |
| 31-60 days late | $260 with $35 per each additional location |
| 61 or more days late | New license is required |
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(1) The employee or agent is eighteen years of age or older;
(2) The employee or agent is a trustworthy person and has not committed any act set forth in RCW 48.17.530;
(3) The employee or agent has completed a training and education program; and
(4) The employee or agent has a current agreement or business relationship with the rental car company.
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(1) The charges for rental car insurance coverage are itemized and related to a rental transaction; and
(2) The insurer has consented in writing that premiums do not need to be segregated from funds received by the rental car agent. This written statement must be signed by an officer of the insurer.
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(1) Evidence of the rental car insurance coverage stated on the face sheet; and
(2) An itemized list of all costs.
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(1) Summarize, clearly and correctly, the material terms, exclusions, limitations, 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) Provide the rental car agent's name, address, telephone number, and license number, and the commissioner's consumer hotline number;
(4) Inform the renter that the rental car insurance may duplicate coverage provided by the renter's personal automobile insurance policy, homeowners' insurance policy, or by another source of coverage;
(5) Inform the renter that when the rental car insurance is not the primary source of coverage, the renter's personal insurance will serve as the primary source of coverage;
(6) Inform the renter that the purchase of the rental car insurance is not required to rent a car from the rental car agent; and
(7) Inform the renter that the rental car agent and the endorsees are not qualified to evaluate the adequacy of the renter's existing insurance coverages.
(8) The policy or certificate of coverage and rates must be filed and approved by OIC as outlined in RCW 48.18.100 and 48.19.040.
(9) If the written material includes a certificate of coverage or policy, the form number and edition, if applicable, of the approved certificate of coverage or policy must be identified on the printed material. The insurer must certify that the policy or certificate of coverage and the rates have been approved and that the wording on the written material is exactly as approved.
(10)(a) The renter must acknowledge the receipt of the brochures and written materials. The acknowledgment may be in the brochure or written materials, rental agreement, or a separate document.
(b) For transactions conducted by electronic means, the rental car agent must comply with the requirements of (a) of this subsection. Acknowledgment of the receipt of the documents may be made by either written or digital signature.
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