An Act To Enact Laws Governing Private Vehicle Rentals
Maine Legislature, Session 129, LD 1615
Committee: Transportation
Sponsors: STANLEY, COLLINGS, MAREAN

Legislative Document
No. 1615
H.P. 1167
House of Representatives, April 23, 2019
An Act To Enact Laws Governing Private Vehicle Rentals
Reference to the Committee on Transportation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative STANLEY of Medway.
Cosponsored by Representatives: COLLINGS of Portland, MAREAN of Hollis.
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  29-A MRSA c. 13, sub-c. 5 is enacted to read:
SUBCHAPTER 5
MOTOR VEHICLE RENTAL MODERNIZATION ACT
§1691.  Short title
This subchapter may be known and cited as "the Motor Vehicle Rental 
Modernization Act."
§1692.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings.
1.  Motor vehicle.  "Motor vehicle" has the same meaning as in section 101, 
subsection 42, except that "motor vehicle" does not include a vehicle with a gross weight 
rating of more than 10,000 pounds and does not include a commercial motor vehicle as 
defined in section 101, subsection 17.
2.  Motor vehicle rental company.  "Motor vehicle rental company" means a person, 
including a franchisee, engaged in the business of facilitating vehicle rental transactions 
that occur in this State.  "Motor vehicle rental company" does not include a private rental 
vehicle owner who makes no more than 3 vehicles available for rent through a private 
vehicle rental program, or through any combination of programs, during a 12-month 
period. 
3.  Owner.  "Owner" means the registered owner of a private rental vehicle available 
through a private vehicle rental program.
4.  Private motor vehicle.  "Private motor vehicle" means a motor vehicle owned 
and registered to an individual who is the named insured under a personal automobile 
liability insurance policy. "Private motor vehicle" does not include a motor vehicle with 
fewer than 4 wheels.
5.  Private rental vehicle.  "Private rental vehicle" means a motor vehicle that is 
owned by and registered to an individual and is available for rent through a provider.
6.  Private vehicle rental program.  "Private vehicle rental program" or "program" 
means any manner, digital or otherwise, by which a private vehicle rental is facilitated by 
a provider.
7.  Private vehicle rental program provider.  "Private vehicle rental program 
provider" or "provider" means a person that is responsible for operating, facilitating or 
administering vehicle rental transactions through a program.
8.  Renter. "Renter" means an individual who obtains the use of a private rental 
vehicle through a program.
9.  Vehicle rental transaction. "Vehicle rental transaction" means the short-term 
transfer of possession of a motor vehicle for consideration without the transfer of 
ownership of that motor vehicle.
§1693.  Requirement for vehicle rental transactions
1.  Compliance with other laws.  A private vehicle rental program provider, private 
rental vehicle owner and any vehicle rental transaction of a private rental vehicle through 
a program are subject to all state laws and rules applicable to private passenger motor 
vehicle rental companies, rental vehicles and vehicle rental transactions, including, but 
not limited to:
A.  Section 254, relating to maintenance of motor vehicle rental records;
B.  Title 10, section 1475, relating to the disclosure of information regarding a used 
motor vehicle;
C.  Title 23, section 4210-B, relating to the use of sales tax revenue from automobile 
rentals for the Multimodal Transportation Fund;
D.  Title 24-A, section 1413, subsection 8, relating to motor vehicle rental companies; 
and
E.  Title 36, section 1811, relating to the sales tax on the value of an automobile 
rental.
2.  Notice; disclosure.  Any notice required to be provided, delivered, posted or 
made available to a renter by a motor vehicle rental company is deemed timely and 
effective if that notice is provided or delivered electronically at or before the time 
required or if that notice is included in a master agreement or member agreement in effect 
at the time of rental. For the purposes of this subsection, "master agreement" or "member 
agreement" includes, but is not limited to, any agreement pertaining to the provision of a 
service:
A.  Offered by a motor vehicle rental company that permits a renter to bypass a retail 
service location and obtain a product or service directly;
B.  When the motor vehicle rental company does not require a renter to execute a 
rental agreement at the time of rental; or
C.  When a renter does not receive the terms and conditions of a rental at the time of 
rental. 
3.  Acceptance.  An electronic or written acceptance by a renter is deemed a valid 
form of acceptance of any notice. The acceptance remains effective until the acceptance 
is affirmatively withdrawn by the renter.
4.  Display of notice.  As long as a notice under subsection 2 is generally consistent 
in appearance with the entirety of the communication in which it is contained, any notice 
or disclosure made pursuant to this subchapter is exempt from specific requirements for 
placement or display of the notice, including, but not limited to, requirements for 
location, font size or type.
5.  Verification of identity.  In the event a motor vehicle rental company facilitates 
rentals through digital, electronic or other means that allow a renter to obtain possession 
of a private rental vehicle without in-person contact with an agent or employee of the 
motor vehicle rental company or when the renter does not execute a rental agreement at 
the time of rental, the motor vehicle rental company is deemed to meet all obligations 
relating to maintaining a record of the renter's identity and the renter's driver's license 
pursuant to section 254 if:
A.  At the time a renter enrolls in a private vehicle rental program, or at any time 
thereafter, the master agreement as defined in subsection 2 requires verification that 
the renter is a licensed driver; or
B.  Prior to the renter taking possession of the private rental vehicle, the motor 
vehicle rental company requires documentation to verify the renter's identity and 
driver's license.
§1694.  Insurance requirements
1.  Insurance required.  A private vehicle rental program provider shall maintain 
insurance pursuant to this section.
2.  Form.  In order to comply with this section, an insurance policy must contain:
A.  The name and address of the named insured or insureds;
B.  The conditions of coverage sufficient to identify whether a given vehicle is 
covered at a given time; 
C.  Any limits of liability; and
D.  An agreement that the coverage is provided pursuant to this subchapter.
3.  Minimum coverage.  The policy must provide coverage in accordance with Title 
24-A, chapter 95.
PART B
Sec. B-1.  24-A MRSA c. 95 is enacted to read:
CHAPTER 95
PRIVATE VEHICLE RENTAL INSURANCE ACT
§7401.  Short title
This chapter may be known and cited as "the Private Vehicle Rental Insurance Act."
§7402.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Insurer.  "Insurer" means an insurer holding a valid and subsisting certificate of 
authority, issued by the superintendent, to transact insurance in this State.
2.  Motor vehicle.  "Motor vehicle" has the same meaning as in Title 29-A, section 
101, subsection 42. 
3.  Owner.  "Owner" means the registered owner of a private rental vehicle;
4.  Private rental vehicle.  "Private rental vehicle" means a motor vehicle that is 
owned by and registered to an individual and is available for rent through a provider.
5.  Private vehicle rental program.  "Private vehicle rental program" or "program" 
means any manner, digital or otherwise, by which a private vehicle rental is facilitated by 
a provider.
6.  Provider.  "Provider" means a person that facilitates the rental of a private rental 
vehicle through the ownership and operation of a digital network or other system.
7.  Rental period.  "Rental period" means the time period that begins when an owner 
transfers control of the owner's private rental vehicle to a provider and continues until the 
following conditions are met:
A.  The private rental vehicle is:
(1)  Retrieved by the owner or the owner's designee;
(2)  Returned to a location agreed upon by the owner and the renter; or
(3)  Returned to a location designated by the provider; and
B.  One of the following occurs:
(1)  The time period established through a rental agreement expires;
(2)  The renter verifiably communicates to the provider or owner that the rental 
period has terminated; or
(3)  The owner or provider takes possession and control of the private rental 
vehicle.
8.  Renter.  "Renter" means an individual who obtains the use of a private rental 
vehicle.
§7403.  Requirements and limitations for private vehicle rental
1.  Classification.  A motor vehicle insured, or required to be insured, by its 
registered owner pursuant to Title 29-A, section 1601 may not be classified as a 
commercial motor vehicle, for-hire transportation vehicle, permissive use vehicle, taxicab 
or livery solely on the basis that the registered owner allows the motor vehicle to be used 
as a private rental vehicle as long as the following conditions apply:
A.  The private rental vehicle complies with the requirements of this chapter;
B.  The owner or provider does not knowingly place the motor vehicle or allow the 
motor vehicle to be placed into use as a commercial vehicle or as for-hire 
transportation by a renter while the motor vehicle is used for private vehicle rental; 
and
C.  The number of motor vehicles a single individual, or more than one individual 
living in the same household, has enrolled in any program or combination of 
programs is no more than 4.
2.  Insurance coverage denial.  An insurer may refuse to issue or renew or may 
cancel a policy of an owner solely on the basis that the owner, individually or in 
combination with other household members, has enrolled more than 4 motor vehicles in a 
program or combination of programs.
3.  Provider insurance; other requirements.  For each motor vehicle participating 
in a program, a provider shall:
A.  Procure group insurance coverage while used as a private rental vehicle and for 
any authorized driver of any such vehicle during the rental period. At a minimum, the 
insurance must provide:
(1)  Liability coverage at least equal to the minimum financial responsibility 
requirements for motor vehicles in the state in which the vehicle is registered; 
and
(2)  Property and casualty coverage, including comprehensive and collision 
protection, as described in section 7405;
B.  Provide the owner of the motor vehicle used as a private rental vehicle with 
suitable written proof of compliance with the insurance requirements of this section 
and the requirements of Title 29-A, section 1605. A copy of the written proof of 
compliance must be maintained in the private rental vehicle by the owner during any 
time the vehicle is operated by a renter or any individual other than the owner 
pursuant to a program;
C.  Ensure that a motor vehicle in the program is not operated for commercial use or 
for use as a motor vehicle for hire by a renter while used as a private rental vehicle;
D.  Provide each renter, for each rental under the program, at the time of each rental, 
with:
(1)  Access to an insurance identification card or other documentation approved 
for use in the state in which the motor vehicle is registered that is able to be 
carried in the vehicle at all times during any rental period and that provides proof 
that the insurance coverage required by paragraph A is in full force and effect; 
and
(2)  The means to communicate, via a toll-free telephone number, e-mail address 
or other form of communication, with a law enforcement officer, representative 
of the Department of the Secretary of State, Bureau of Motor Vehicles or other 
state official in the state in which the vehicle is registered to confirm in real time 
that insurance coverage required by paragraph A is in full force and effect;
E.  Require that each motor vehicle made available for private vehicle rental complies 
with the minimum financial responsibility requirements of the state in which the 
vehicle is registered;
F.  Require that each motor vehicle used in the program is a private rental vehicle;
G.  Facilitate the installation, operation and maintenance of the provider's own 
signage and computer hardware and software to the extent necessary;
H.  Indemnify and hold harmless the owner for the cost of damage or theft of any 
equipment installed by the provider under paragraph G for any damage to the motor 
vehicle caused by the installation, operation or maintenance of that equipment;
I.  Collect, maintain and make available, at the provider's cost, the following 
information to any governmental entity as required by law, to the owner's primary 
automobile insurer and to the renter's primary automobile insurer, excess insurer or 
umbrella insurer:
(1)  Verifiable records of each rental period and, to the extent electronic 
equipment for monitoring the information is installed in the motor vehicle, 
verifiable electronic records of the time the vehicle is driven, the initial and final 
locations of the vehicle and miles driven if mileage is collected; and
(2)  In instances when an insurance claim has been filed with the provider's 
insurer, any information relevant to the claim, including any payments by the 
provider due to accidents, damage or injuries;
J.  Ensure that the owner and renter are given notice prior to the first use or operation 
of a private rental vehicle pursuant to enrollment in the program that:
(1)  During the rental period the owner's insurer may exclude coverage under the 
owner's insurance policy. The provider may also notify the owner and renter that 
the owner's insurer has no duty to defend or indemnify any individual or person 
for liability for any loss that occurs during the rental period; and
(2)  The provider's insurance policy and physical damage contract may not 
provide coverage outside of the rental period; and
K.  Comply with all statutory and regulatory obligations for motor vehicle rental, 
including, but not limited to, compliance with the provisions of section 1413, 
subsection 8 and Title 10, section 1475; Title 23, section 4210-B; Title 29-A, sections 
and 1605; and Title 36, section 1811.
§7404.  Liability provisions
1.  Provider liable as if owner.  Notwithstanding any other provision of law to the 
contrary or any provision in an automobile insurance policy, in the event a loss or injury 
occurs during a rental period or while a motor vehicle is under the control of a provider, 
the provider is deemed the owner of the vehicle under Title 29-A, section 1652 and any 
provision of law that may impose liability upon the owner of a motor vehicle solely based 
on ownership of the vehicle. The provider retains liability regardless of any lapse in the 
provider's policy or whether that liability is covered under the provider's policy or any 
other insurance policy under which the provider is insured. 
2.  Insurance coverage.  A provider shall maintain insurance that covers liability and 
physical damage during the rental period unless the private rental vehicle is covered by 
rental car insurance.
3.  Disputes regarding liability.  An insurer providing the owner's insurance as 
described in this section is liable for a claim when a dispute exists as to who was in 
control of the private rental vehicle at the time of the incident giving rise to the claim.  
The owner's insurer shall indemnify the provider's insurer to the extent of the owner's 
obligation under the applicable insurance policy if it is determined that the private rental 
vehicle was under the control of the owner at the time of the incident giving rise to the 
claim. The provider shall notify the owner's insurer of a dispute within 10 business days 
of becoming aware of the dispute.
4.  Indemnification.  In the event that the owner or the owner's insurer is named as a 
defendant in a civil action for a loss or injury that occurs during any time within the rental 
period or when the motor vehicle is under the control of the provider, the provider's 
insurer has the duty to defend and indemnify the vehicle's owner and the owner's insurer 
subject to the requirements of subsection 3.
5.  No obligation of owner's insurer.  Notwithstanding any other provision of law to 
the contrary, the following conditions apply while a private rental vehicle is used by a 
renter:
A.  The owner's insurer may exclude any coverage for liability, uninsured and 
underinsured motorist, collision physical damage and comprehensive physical 
damage benefits and first-party coverage that may otherwise be afforded pursuant to 
a policy; and
B.  The owner's primary and excess insurers have the right to notify the owner that 
the insurer has no duty to defend or indemnify any person or organization for liability 
for any loss that occurs during the rental period.
6.  Cancellation of owner's insurance.  An insurer may not cancel, void, terminate, 
rescind or refuse to renew a policy issued to an owner solely on the basis that the owner's 
motor vehicle is a private rental vehicle in compliance with this chapter and Title 29-A, 
chapter 13, subchapter 5, except that:
A.  The provisions of this subsection do not apply to a cancellation in accordance 
with Title 29-A, section 1606 or 1611 or to a nonrenewal of a policy in accordance 
with section 2916-A;
B.  An insurer may refuse to enroll a vehicle in a usage-based insurance program 
under which the program monitors usage electronically to determine acceleration, 
braking, miles driven and other indicia of driving behavior; and
C.  An insurer may cancel or refuse to renew a policy that insures a private rental 
vehicle if that vehicle is enrolled in a usage-based insurance program as described in 
paragraph B as long as the insurer offers the owner a new policy with the same 
coverage and premium that does not include enrollment in a usage-based program.
§7405.  Group insurance for private vehicle rental programs
1.  Authorization for liability and property and casualty insurance.  An insurer 
authorized to transact business in this State may issue or issue for delivery in this State a 
group policy of liability and property and casualty insurance to a private vehicle rental 
program to insure the provider and any renter or authorized operator or occupant of a 
private rental vehicle and any employee, agent or officer of the program as long as the 
policy meets the requirements of this section.
2.  Policy requirements.  A policy issued in accordance with this section must 
provide first-party, liability, property, comprehensive, collision and uninsured and 
underinsured motorist coverage for the private rental vehicle and any authorized 
operators and occupants for any claims or damages resulting from the use of that vehicle 
during the rental period. The policy is primary with respect to any other insurance 
available to the owner of the private rental vehicle but is secondary with respect to any 
other insurance available to the renter or authorized operator or occupant of the private 
rental vehicle. The policy must comply with the requirements of Title 29-A, chapter 13, 
subchapter 2 with respect to financial responsibility.
3.  Filing of rates.  For the purposes of any group insurance policy written in 
accordance with this section, the insurer shall file rates with the superintendent on a file-
and-use basis.
4.  Identification of insured under the policy.  An insurer that issues a policy in 
accordance with this section shall issue the policy in a manner that identifies the private 
vehicle rental provider as the named insured. The policy must include a provision that 
provides coverage without prior notice to the insurer for all private rental vehicles during 
the rental period and that provides coverage for any renter or authorized operator or 
occupant of a private rental vehicle as an insured under the policy to the same extent that 
coverage would be provided under a motor vehicle policy issued in accordance with Title 
29-A, section 1605.
5.  Risk of physical damage.  A provider may contractually assume the risk of 
physical damage loss to a private rental vehicle during the time that the vehicle is in the 
custody of the renter or provider. An assumption of risk under this subsection may not be 
considered physical damage insurance. A provider may offer a renter optional vehicle 
protection in accordance with Title 10, section 1500-H.
6.  Authorization to issue group physical damage insurance.  An insurer 
authorized to transact business in this State may issue or issue for delivery in this State a 
group policy of physical damage insurance to a private vehicle rental program and to an 
owner of a private rental vehicle to insure against physical damage loss to a private rental 
vehicle during the time that the vehicle is in the custody of the renter or provider as long 
as the policy meets the requirements of this section. The policy must provide primary 
coverage through collision or comprehensive coverage, or both, for physical damage loss 
to the private rental vehicle during the time that the vehicle is in the custody of the renter 
or provider.
7.  Physical damage insurance by surplus lines insurer.  If the group coverage for 
physical damage insurance as provided for in subsection 6 is provided by a surplus lines 
insurer, the surplus lines insurer shall comply with the requirements of this Title 
applicable to surplus lines insurance with respect to the group as a whole and not with 
respect to individual members of the group.
8.  Requirements for physical damage insurance.  An insurer that issues a group 
policy of physical damage insurance as described in subsection 6 shall issue the policy to 
the private vehicle rental provider as the named insured. The policy must include a 
provision that provides primary coverage without prior notice to the insurer for all private 
rental vehicles during the rental period and that provides coverage for physical damage or 
loss to the owner's private rental vehicle during the rental period at a level no less than 
that of 3rd-party coverage for physical damage or loss.
§7406.  Financial responsibility
1.  Financial responsibility requirement met by group insurer.  In the case of a 
private rental vehicle used in connection with a private vehicle rental program, the motor 
vehicle financial responsibility required pursuant to Title 29-A, section 1601 must be met 
by a group insurance policy, as specified in section 7405, issued to a provider and to any 
renter or authorized operator or occupant of a private rental vehicle during any time that 
the private rental vehicle is being used in connection with a private vehicle rental 
program. 
2.  Proof of financial security.  The provider shall provide the superintendent with 
proof of financial security in the form of a group insurance policy covering the program 
and an owner of a private rental vehicle registered in this State that participates in the 
program as an insured group member and covering private rental vehicles while the 
vehicles are used in connection with the program. The proof required under this 
subsection may not be used in connection with the registration of a private rental vehicle, 
and the vehicle may not be registered unless the owner separately complies with Title 
29-A, section 402.
SUMMARY
This bill modernizes state law to regulate private vehicle rentals.
Part A requires private vehicle rentals to comply with the same laws that apply to 
rental vehicles, rental vehicle transactions and rental vehicle companies. Part A also 
allows rental vehicle companies to comply with certain notice and record-keeping 
requirements electronically or through a master agreement.
Part B of the bill establishes insurance requirements for private vehicle rentals.