Ohio Administrative Code
Title 3901 - Department of Insurance
Chapter 3901-5 - Agents, Licensing, Continuing Education
Section 3901-5-10 - Rental car insurance agent limited license
Universal Citation: OH Admin Code 3901-5-10
Current through all regulations passed and filed through September 16, 2024
(A) Purpose
The purpose of this rule is to set forth procedures and requirements for the issuance of a limited authority rental car agent license. Paragraph (F) of rule 3901-5-09 of the Administrative Code authorizes a limited lines license for rental car insurance.
(B) Authority
This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041 and 3905.28 of the Revised Code.
(C) Definitions
For the purposes of this rule:
(1) "Endorsee" means an employee of a rental
car agent or any authorized representative who meets the requirements of this
rule.
(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 less than
thirty consecutive days 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, 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 by the superintendent and appointed by an insurer to
offer, sell, or solicit rental car insurance pursuant to this rule.
(6) "Rental car company" means any person in
the business of renting rental cars to the public.
(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 pre-selection of coverage in
master, corporate, group or individual agreements that:
(a) Is non-transferable;
(b) Applies only to the rental car that is
the subject of the rental agreement; and
(c) Is 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 that provides protection to the renters and to other
authorized drivers of a rental car for liability arising from the operation or
use 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 executes a
rental agreement.
(D) General rules
(1) No rental car company, and
no officer, director, authorized representative, or employee of a rental car
company, shall offer, sell, solicit or identify the availability of or
effectuate the placement of rental car insurance or the purchase of rental car
insurance unless that person is licensed as an insurance agent pursuant to
Chapter 3905. of the Revised Code or there has been compliance with the
requirements of this rule.
(2) The
superintendent may issue to a rental car company that has complied with the
requirements of this rule, a limited authority license that authorizes the
rental car company to act as a rental car agent in accordance with the
provisions of this rule, in connection with and incidental to rental
agreements, on behalf of any insurer admitted to write such insurance in this
state.
(E) Licensing rental car companies as rental car agents
(1)
A rental car company may apply to be licensed as a rental car agent under the
terms of this rule if it satisfies all of the requirements of this rule and if
it submits to the superintendent an application for licensure in the form
prescribed by the superintendent that includes an appointment by an admitted
insurer.
(2) A limited authority
license as a rental car agent is valid and authorizes the licensee to act as a
limited authority agent to the extent permitted by law only so long as the
licensee is appointed by at least one insurer that is authorized to write
rental car insurance.
(F) Responsibilities of the appointing insurer
By appointing a rental car agent, an insurer certifies that the applicant is competent, financially responsible, and suitable to act as a rental car agent; that the insurer has reviewed the endorsee training and education program required by paragraph (G)(4) of this rule and believes that it satisfies the requirements of this rule; and that the insurer is responsible for the conduct of the rental car agent acting within the scope of its agency appointment.
(G) Rental car agent endorsees
(1) An endorsee of a rental
car agent may identify the availability of and effectuate the placement of
rental car insurance in accordance with this rule. Such activities, and any
activities incidental thereto, shall not constitute any of the activities
listed in section 3905.01 of the Revised Code when
performed by an endorsee in accordance with this rule. An individual may be an
endorsee if all of the following conditions are satisfied:
(a) The individual is eighteen years of age
or older;
(b) The individual is an
employee of a rental car agent or an authorized representative;
(c) the individual has completed a training
and education program; and
(d) The
rental car company maintains and, upon request, makes available to the
superintendent a list of the names and addresses of all endorsees and the dates
during which each endorsee was employed by the rental car company. Records must
be maintained for five years following the termination of an endorsee's
employment.
(2) A rental
car agent's failure to maintain the records required by paragraph (G)(1) of
this rule
is a violation of division (B) of section
3905.14 of the Revised Code and
constitutes grounds to refuse to renew, suspend or
revoke its license.
(3) A rental
car agent's endorsee may only act on behalf of the rental car agent in
identifying the availability of and effectuating rental car insurance. A rental
car agent is responsible for and
is obligated to supervise all actions of its
endorsees related to rental car insurance. The conduct of an endorsee acting
within the scope of his or her employment in connection with products described
in paragraph (C)(7) of this rule shall be deemed the conduct of the rental car
agent for purposes of this rule and shall not constitute conduct requiring an
agent's licensee under section
3905.01 of the Revised
Code.
(4) Each rental car agent or
the insurer that appoints the rental car agent
is obligated to
provide a training and education program for each endorsee prior to allowing an
endorsee to identify the availability of and effectuate the placement of rental
car insurance.
The rental car agent is obligated to submit the program to
the superintendent upon request. The training program shall meet the
following minimum standards:
(a) Each
endorsee
receives instruction about the kinds of insurance
specified in this rule that are offered to prospective renters;
(b) Each endorsee
receives training about the requirements and
limitations imposed on rental car agents and endorsees by this rule. That
training
includes specific instruction that the endorsee
is prohibited by law from making any statement or engaging in any conduct,
express or implied, that would lead a consumer to believe:
(i) That the purchase of rental car insurance
is required in order for the renter to rent a motor vehicle;
(ii) That the renter does not have insurance
policies in place that already provide the coverage being offered by the rental
car company pursuant to this rule; or
(iii) That the endorsee is qualified to
evaluate the adequacy of the renter's existing insurance coverages.
(5)
The rental car agent shall retain for a period of one year from the date of
each transaction records which enable it to identify the name of the endorsee
involved in each rental transaction where a renter purchases rental car
insurance.
(H) Rental car agent restrictions
No insurance may be offered, sold, or solicited pursuant to this rule unless:
(1) The rental
period of the rental car agreement is less than thirty consecutive
days.
(2) At every location where
rental agreements are executed, the rental car agent or endorsee provides or
prominently displays brochures or other written materials to each renter who
purchases rental car insurance that, clearly and conspicuously and in plain
language:
(a) Summarize, clearly and
correctly, the material terms, exclusions, limitations, and conditions of
coverage offered to renters, including the identity of the insurer;
(b) Describe the process for filing a claim
in the event the renter elects to purchase coverage, including a toll-free
telephone number to report a claim;
(c) Provide the rental car agent's name,
address, telephone number, and license number;
(d) Inform the consumer that the rental car
insurance offered, sold, or solicited by the rental car agent may provide a
duplication of coverage already provided by a renter's personal automobile
insurance policy, homeowners insurance policy, or by another source of
coverage;
(e) Inform the consumer
that the purchase by the renter of the rental car insurance is not required in
order to rent a rental car from the rental car agent; and
(f) Inform the consumer that neither the
rental car agent nor the rental car agent's endorsees are qualified to evaluate
the adequacy of the renter's existing insurance coverages.
(3) The brochures or other written materials
provided or prominently displayed pursuant to paragraph (H)(2) of this rule
shall be filed by the insurer with the department of insurance pursuant to the
procedures of section
3937.01 of the Revised
Code.
(4) The purchaser of rental
car insurance acknowledges, in writing or electronically, the receipt or offer
of the brochures or written materials required by paragraph (H)(2) of this
rule.
(5) Evidence of the rental
car insurance coverage is stated on the face of the rental agreement.
(6) All costs for the rental car insurance
are separately itemized in the rental agreement.
(I) Rental car agent prohibitions
(1) A rental car agent shall not:
(a) Offer, sell, or solicit the purchase of
rental car insurance except in conjunction with and incidental to rental car
agreements.
(b) Advertise,
represent, or otherwise portray itself or any of its employees, authorized
representatives, or agents as an insurer.
(c) Pay any person, including a rental car
agent endorsee, any compensation, fee, or commission that is dependent solely
upon the placement of rental car insurance unless that person is a licensed
rental car agent. Nothing in this rule shall prohibit production payments or
incentive payments that are not dependent solely upon the sale of rental car
insurance.
(d) Make any statement
or engage in any conduct, express or implied, that would lead a customer to
believe:
(i) That the insurance policies
offered by the rental car agent may not provide a duplication of coverage
already provided by a renter's personal automobile insurance policy, homeowners
insurance policy, or by another source of coverage;
(ii) That the purchase by the renter of
rental car insurance is required in order to rent a rental car from the rental
car agent; and
(iii) That the
rental car agent or the rental car agent's endorsees are qualified to evaluate
the adequacy of the renter's existing insurance coverages.
(2) No licensee or endorsee shall
provide any information or advice or make any representation as to what
benefits or coverages a renter's personal or other insurance policies may
provide.
(J) Enforcement
(1) In the event any provision of this rule
is violated by a rental car agent or its endorsee, the superintendent may
revoke, refuse to issue or renew, or suspend the
license issued under this rule or impose any other sanctions provided by
Chapter 3905. of the Revised Code in accordance with the provisions set forth
in Chapter 119. of the Revised Code;
(2) If any person sells insurance in
connection with or incidental to rental car agreements or holds self out as a
rental car agent without satisfying either the requirements of this rule or the
licensing provisions of Chapter 3905. of the Revised Code, the superintendent
is
authorized to issue a cease and desist order in addition to taking any other
administrative action provided for in section
3901.22 and division (B) of
section 3905.14 of the Revised
Code.
(K) Trust accounts
A rental car agent shall not be required to treat moneys collected from renters purchasing rental car insurance as funds received in a fiduciary capacity, provided that:
(1)
The charges for rental car insurance coverage are itemized and ancillary to a
rental transaction; and
(2) The
insurer has consented in writing, signed by an officer of the insurer, that
premiums need not be segregated from funds received by the rental car
agent.
(L) Severability
If any portion of this rule or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the rule or related rules which can be given effect without the invalid portion or application, and to this end the provisions of this rule are severable.
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