The Commissioner of Insurance by Commissioner's Order No. 03-0730, has amended the Texas Automobile Rules and Rating Manual, Rule 141, Rental Car Companies. Manual Rule 141.E.3. is deleted, thereby removing the requirement that an employee of a rental car company or its franchisee verbally deliver specified language to a prospective renter that he or she may already have an insurance policy that duplicates the coverage that would be provided by the policy (automobile rental liability insurance) offered by the rental car company. This deletion also eliminates the requirement that such an employee verbally deliver specified language to the prospective renter that the purchase of automobile rental liability insurance is not required as a condition of renting an automobile. The rule's requirements for written disclosures are not changed. Current Section E.4. becomes Section E.3., and its reference to Section E.3. is deleted.
Another amendment requires the rental car company or its franchisee verbally to mention to the renter the written disclosure that must be provided pursuant to Rule 141.E.2, which relates to the same general subject matter as the previously mentioned (and deleted) Section E.3. Section E.2. of the rule is amended by inserting the words "and verbally mentioned... ." Revised Rule 141.E.2. will begin as follows:
"2. a written disclosure provided and verbally mentioned to the renter prior to any offer to sell automobile rental liability insurance... ."
The amendments were adopted to become effective September 6, 2003, which is 15 days after publication of the Commissioner's action in the Texas Register.
The Commissioner's Order may be accessed on our web site as follows:
http://www.tdi.state.tx.us/orders/ co030730.html
Questions regarding this bulletin may be directed to Grover Corum, Manager, Automobile/Homeowners Division at 512-322-3430 or Grover.Corum@tdi.state.tx.us.
Sincerely,
Marilyn Hamilton, Associate Commissioner
Property & Casualty Program MC 104-PC