215 ILCS 5/500-105
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXI - Insurance Producers, Limited Insurance Representatives And Registered Firms

(Section scheduled to be repealed on January 1, 2027)Sec. 500-105.     Car rental limited line license for rental companies.(a) A rental company must obtain a producer license or obtain a car rental  limited line  license before offering or selling insurance in connection with and incidental  to the rental of  vehicles.  The sale of the insurance may occur at the rental office or by  preselection of coverage  in a master, corporate, group rental, or individual agreement.  The following  general categories  of coverage may be offered or sold:(1) personal accident insurance covering the risks of     travel including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period;(2) liability insurance, including uninsured and     underinsured motorist coverage, that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle;(3) personal effects insurance that provides     coverage, as applicable, to renters and other vehicle occupants for the loss of, or damage to, personal effects that occurs during the rental period;(4) roadside assistance and emergency sickness     protection programs; and(5) any other travel or auto-related coverage that a     rental company offers in connection with and incidental to the rental of vehicles.(b) Insurance may not be offered by a car rental limited line producer  pursuant to this  Section unless:(1) the rental company has applied for and obtained a     car rental limited line license;(2) the rental period of the rental agreement does     not exceed 30 consecutive days;(3) at every rental location where rental agreements     are executed, brochures or other written materials are readily available to the prospective renter that:(A) summarize clearly and correctly, the material         terms of coverage offered to renters, including the identity of the insurer;(B) disclose that the coverage offered by the         rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;(C) state that the purchase by the renter of the         kinds of coverage specified in this Section is not required in order to rent a vehicle; and(D) describe the process for filing a claim in         the event the renter elects to purchase coverage and in the event of a claim; and(4) evidence of coverage in the rental agreement is     disclosed to every renter who elects to purchase such coverage.(c) Car rental company franchisees must apply for a car rental limited line  license  independent of the franchisor if insurance provided pursuant to this Section is  offered by the  franchisee.(d) A car rental limited line license issued under this Section shall also  authorize any  employee of the car rental  limited line licensee to act individually on behalf and  under the  supervision of the car rental limited line licensee with respect to the kinds  of coverage specified  in this Section.(e) A rental company licensed pursuant to this Section must conduct a  training  program in which employees being trained shall receive basic instruction about  the kinds of  coverage specified in this Section and offered for purchase by  prospective  renters of rental  vehicles.(f) Notwithstanding any other provision of this Section or any rule adopted  by the  Director, a car rental limited line producer pursuant to this Section is not  required to treat moneys  collected from renters purchasing insurance when renting vehicles as funds  received in a  fiduciary capacity, provided that the charges for coverage shall be itemized  and be ancillary to a  rental transaction.(g) The sale of insurance not in conjunction with a rental transaction shall  not be  permitted.(h) A car rental limited line producer under this Section may not advertise,  represent,  or otherwise hold itself or any of its employees out as licensed insurers,  insurance producers,  insurance agents, or insurance brokers.(i) Direct commissions may not be paid to rental car company employees by  the  insurer or the customer purchasing insurance products.  The rental car company  may include  insurance products in an overall employee performance compensation incentive  program.(j) An application for a car rental limited line license must be made on a  form  specified by the Director.    (Source: P.A. 92-386, eff. 1-1-02.)