(a)In addition to the other charges permitted
by this chapter, for a period during which the lessor relieves the lessee
of liability under a liability waiver, a lessor and a lessee may contract
for a liability waiver fee in the following amounts:
(1)In the case of a rental purchase agreement with weekly or
biweekly renewal dates, the liability waiver fee may not exceed
the greater of:
(A)ten percent (10%) of the periodic lease payment disclosed
under IC 24-7-3-3(2); or
(2)In the case of a rental purchase agreement with monthly
renewal dates, the liability waiver fee may not exceed the greater
of:
(A)ten percent (10%) of the periodic lease payment disclosed
under IC 24-7-3-3(2); or
(b)The selling or offering for sale of a liability damage w
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(a) In addition to the other charges permitted
by this chapter, for a period during which the lessor relieves the lessee
of liability under a liability waiver, a lessor and a lessee may contract
for a liability waiver fee in the following amounts:
(1) In the case of a rental purchase agreement with weekly or
biweekly renewal dates, the liability waiver fee may not exceed
the greater of:
(A) ten percent (10%) of the periodic lease payment disclosed
under IC 24-7-3-3(2); or
(B) two dollars ($2).
(2) In the case of a rental purchase agreement with monthly
renewal dates, the liability waiver fee may not exceed the greater
of:
(A) ten percent (10%) of the periodic lease payment disclosed
under IC 24-7-3-3(2); or
(B) five dollars ($5).
(b) The selling or offering for sale of a liability damage waiver
under this section is subject to the following prohibitions and
requirements:
(1) A lessor may not sell or offer to sell a liability damage waiver
unless all restrictions, conditions, and exclusions are:
(A) printed in the rental purchase agreement, or in a separate
agreement, in 8 point type or larger; or
(B) written in ink or typewritten in or on the face of the rental
purchase agreement in a blank space provided therefor.
(2) The liability damage waiver may exclude only loss or damage
to the property that is the subject of the rental purchase agreement
caused by moisture, scratches, mysterious disappearance,
vandalism, abandonment of the property, or any other damage
intentionally caused by the lessee or that results from the lessee's
willful or wanton misconduct.
(3) The liability damage waiver agreement must include a
statement of the total charge for the liability damage waiver. The
liability damage waiver agreement must display in 8 point
boldface type the following:
"NOTICE: THIS CONTRACT OFFERS, FOR AN
ADDITIONAL CHARGE, A LIABILITY DAMAGE WAIVER
TO COVER YOUR RESPONSIBILITY FOR DAMAGE TO
THE PROPERTY. BEFORE DECIDING WHETHER TO
PURCHASE THE LIABILITY DAMAGE WAIVER, YOU
MAY WISH TO DETERMINE WHETHER YOUR OWN
HOMEOWNERS OR CASUALTY INSURANCE AFFORDS
YOU COVERAGE FOR DAMAGE TO THE RENTAL
PROPERTY, AND THE AMOUNT OF THE DEDUCTIBLE
UNDER YOUR OWN INSURANCE COVERAGE. THE
PURCHASE OF THIS LIABILITY DAMAGE WAIVER IS
NOT MANDATORY AND MAY BE DECLINED.".
(4) The restrictions, conditions, and exclusions of the liability
damage waiver must be disclosed on the agreement or on a
separate agreement, sheet, or handout given to the lessee before
entering into the rental purchase agreement. The separate
contract, sheet, or handout must be signed or otherwise
acknowledged by the lessee as being received before entering into
the rental purchase agreement.
(5) The lessor shall keep and maintain records as prescribed by
the director of the department. The director of the department may
inspect the records and determine whether the rates charged under
this section are fair and reasonable.