RENTAL VEHICLE INSURANCE - H.B. 6448 (H-1): COMMITTEE SUMMARY


House Bill 6448 (Substitute H-1 as passed by the House)

Sponsor: Representative Andrew Richner

House Committee: Insurance and Financial Services

Senate Committee: Financial Services


Date Completed: 12-4-02


CONTENT


The bill would amend the Insurance Code to provide that a certificate of authority to transact insurance in the State would not be required for the sale of any travel or auto-related insurance coverages by a motor vehicle rental company or its officers or employees in connection with and incidental to the rental of a motor vehicle. In addition, the bill would exempt from licensure as an insurance producer (a person required to be licensed to sell, solicit, or negotiate insurance) a person whose only sale of insurance was for travel or auto-related insurance sold in connection with and incidental to the rental of a motor vehicle for not more than 90 days.


Under the bill, a "motor vehicle" would be a motorized vehicle designed for transporting passengers or goods. A "motor vehicle rental company" would be any person in the business of providing motor vehicles to the public under a rental agreement for not more than 90 days.


MCL 500.1202 et al. - Legislative Analyst: George Towne


FISCAL IMPACT


The bill would have no fiscal impact on State or local government.


- Fiscal Analyst: Maria TyszkiewiczS0102\s6448sa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.