§ 26.1-40-17.1 — Motor vehicle liability policy - Rental vehicles covered

North Dakota § 26.1-40-17.1

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-40: Automobile Insurance and Warranties

Text

1. Every motor vehicle liability insurance policy, as required by section 39-08-20, covering
noncommercial private passenger motor vehicles must provide that all of the obligation
for damage and loss of use to a rented private passenger vehicle will be covered by

the property damage liability portion of the policy and subject to that policy limit. The
obligation of the policy must not be contingent on fault or negligence of the insured.
For purposes of this section, private passenger motor vehicle includes station wagons,
minivans, vans, and pickups, and does not include motor homes, motorcycles, or
trucks other than pickups.
2. A vehicle is rented for purposes of this section if the vehicle is rented under an
agreement for thirty continuous days or less.
3. The policy or certificate issued by the insurer must inform the insured of the application
of the insurance policy to rental vehicles and that the insured may not need to
purchase additional coverage from the rental company.
4. If an insured has two or more vehicles covered by a plan or plans of liability insurance
containing the rented motor vehicle coverage required under subsection 1, the insured
may select the policy that the insured wishes to collect from and the insurer that issued
that plan is entitled to a pro rata contribution from any other plan or insurers based
upon the property damage limits of liability. If the person renting the motor vehicle is
also covered by that person's employer's insurance policy or the employer's
automobile self-insurance plan, the insurer or obligor under the employer's policy or
self-insurance plan has primary responsibility to pay claims arising from use of the
rented vehicle.
5. A notice advising the insured of rental vehicle coverage must be given by the insurer to
each current insured with their first renewal notice following July 6, 1989. The notice
must be approved by the insurance commissioner. The commissioner may specify the
form of the notice.
6. A rental car company may not require as a condition to its rental contract that the
renter make a deposit for a prior payment of damage to the rented vehicle or loss of
use of that vehicle.
7. For each day a damaged vehicle is out of service because of damage to the vehicle
while rented to others, the rental car company is entitled to collect sixty percent of the
daily rental fee applicable to the contract in force when the car was damaged, but not
to exceed fifteen days.