HB 1285 (Truly Agreed) Modifies law regarding auto insurance with respect to car rental companies and the Transportation Commission
Current Bill Summary
- Prepared by Senate Research -

SS/HS/HCS/HB 1285 - This act modifies the law with respect to what constitutes deceptive and unfair trade practices with respect to car rental companies. The act modifies the definition of "authorized driver" as it applies to car rental contracts to exclude employers, parking valets, and family members other than a spouse. The act revises the written notice that must appear on every car rental contract regarding the purchase of optional insurance coverage and how the consumer's own auto insurance policy or credit card might already offer that protection. The act requires car rental companies to provide notice to the consumer in the form of a sign or brochure that informs the consumer about the availability of a collision damage waiver, any other optional car rental insurance, and a statement that the purchase of collision damage waiver is not required in order to rent a car.

The act clarifies that a violation for deceptive and unfair practice must be done knowingly and intentionally. The act provides that a violation by a car company of the act shall lead to a $50 fine for each violation up to $100,000 in any calendar year. The act provides that injunctive relief and the above aforementioned fines are the exclusive remedy for any violation of Sections 407.730 to 407.735.

The act also modifies the law with respect to how the state Highways and Transportation Commission may provide automobile liability insurance. The act provides that the commission may provide such insurance for airplanes and boats utilized by the commission in addition to motor vehicles. The commission may provide for such insurance by a plan of:

(1) Self-insurance;

(2) Partially self-insured and partially insured by a contract of insurance; or

(3) Full insurance issued by an insurance company.

The act provide that injuries sustained in company owned, leased, rented, or otherwise subsidized motor vehicles in accidents that occur while traveling to or from work are not compensable and that the "extension of premises" doctrine is overruled to the extent it extends liability for accidents that occur on property not controlled by an employer (section 287.020).

These provisions can also be found in the truly agreed to version of SB 1233 (2004).

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