H. B. 2137
(By Delegates Mezzatesta, Williams and Manuel)
[Introduced January 13, 1999; 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.