H. B. 2189
(By Delegates Mezzatesta, Williams and Manuel)
[Introduced January 14, 2003; 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 vehicle 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.