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Introduced Version House Bill 2423 History

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Key: Green = existing Code. Red = new code to be enacted


H. B. 2423


(By Delegates Mezzatesta, Williams and Manuel)
[Introduced February 21, 2001; referred to the
Committee on Banking and Insurance then the Judiciary.]




A BILL to amend and reenact section twenty-nine, article six, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to providing that when an insured individual is loaned or rented a vehicle from a person, firm or corporation engaged in the business of selling, repairing, leasing, renting or servicing motor vehicles, the individual's motor vehicle insurance is primary, and requiring that every loaner, demonstration or rental vehicle agreement includes the individual's acknowledgment that his or her coverage is primary.

Be it enacted by the Legislature of West Virginia:
That section twenty-nine, article six, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 6. THE INSURANCE POLICY.

§33-6-29. Motor vehicle policy; injuries to guest passengers; coverage for loaned, leased or rented motor vehicles; exceptions.

(a) An insurer shall may not issue any policy of bodily injury or property damage liability insurance which excludes coverage to the owner or operator of a motor vehicle on account of bodily injury or property damage to any guest or invitee who is a passenger in such the motor vehicle.
(b) Every policy or contract of liability insurance which insures a motor vehicle licensed in this state with collision, comprehensive, property or bodily injury coverage shall extend these coverages to cover the insured individual while operating a motor vehicle which he or she is permitted to use by a person, firm or corporation that owns the vehicle and is engaged in the business of selling, repairing, leasing or servicing motor vehicles. Coverage under any motor vehicle insurance policy available to such the insured individual shall be primary, and any collision, comprehensive, property or bodily injury insurance coverage owned or obtained by a person, firm or corporation that owns the motor vehicle and is engaged in the business of selling, repairing, leasing or servicing motor vehicles shall be secondary. Recovery under the motor vehicle owner's insurance policy shall may not be permitted until the insured individual has exhausted the limits of all other insurance policies available to him or her: Provided, That the following conditions are met: (1) No separate consideration is paid by or on behalf of the insured individual at the time of his or her use of the vehicle; and (2) the insured individual is operating the vehicle with the business owner's permission as a replacement vehicle provided to the insured individual while his or her vehicle is out of use because it is being repaired or serviced by the business owner or another person with the permission of the business owner.
(c) Notwithstanding any provision of this section to the contrary, any insurance coverage available to the insured individual as described in the foregoing paragraph shall be secondary to any motor vehicle liability insurance owned or obtained by the person, firm or corporation engaged in the business of selling, repairing, leasing or servicing motor vehicles, if the insured individual is an employee of the business owner and is operating the motor vehicle with the permission of the business owner while acting within the scope of his or her employment or the insured individual is testing the vehicle for possible purchase or for a lease with more than a thirty-day term.
(d) Notwithstanding any other provision of this code to the contrary, in a case where a claim for liability or collision coverage arises from the operation of a motor vehicle that has been made available for a period of thirty days or less, by a person, firm or corporation engaging in the business of selling, repairing, leasing, renting or servicing motor vehicles to an individual who is insured under a policy of motor vehicle insurance, for his or her use as a demonstration vehicle, as a loaner vehicle or as a rental vehicle while the individual requires the use of a rental vehicle for any reason from the person, firm or corporation engaged in the business of selling, repairing, leasing, renting or servicing motor vehicles, the individual's motor vehicle insurance is primary and the motor vehicles owner's policy is secondary, and no claim may be made against the motor vehicle owner's insurance policy or self-insurance until the limits of the individual's insurance policy or self-insurance have been exhausted: Provided, That every written agreement for a demonstration, loaner or rental vehicle shall include on its face a statement signed and dated by the insured individual stating that the individual's motor vehicle insurance coverage is primary.


NOTE: The purpose of this bill is to provide that an insured individual's motor vehicle coverage is primary when a claim arises from the operation of a vehicle owned by a person, firm or corporation engaged in the business of selling, repairing, leasing, renting or servicing motor vehicles and loaned or rented to the individual for his or her use as a loaner, demonstration or rental vehicle. It also requires that every written agreement for a loaner, demonstration or rental vehicle includes a statement to this effect, signed and dated by the user.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

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