31.03.11.06

.06 Disclosures.

A. In General. Before the completion of a rental transaction, a motor vehicle rental company shall provide to a prospective renter who purchases any of the insurance coverages a disclosure that meets the requirements of this regulation.

B. Sale or Offer of Insurance on Business Premises. If a motor vehicle rental company sells or offers to sell insurance on any business premises of the motor vehicle rental company in connection with, and incidental to, a rental agreement, the motor vehicle rental company shall prominently display on the premises and make readily available to prospective renters a disclosure that meets the requirements of §F of this regulation.

C. Sale or Offer of Insurance Over Telephone. If a motor vehicle rental company sells or offers to sell insurance over the telephone in connection with, and incidental to, a rental agreement, the motor vehicle rental company shall, if the prospective renter requests insurance coverage or information on insurance coverage or otherwise indicates an interest in insurance coverage, advise the prospective renter that the State of Maryland has a consumer disclosure relating to insurance coverage for rental vehicles and offer to read the prospective renter a disclosure that meets the requirements of §F of this regulation.

D. Sale or Offer of Insurance Through a Web Site. If a motor vehicle rental company sells or offers to sell insurance through a web site in connection with, and incidental to, a rental agreement, the motor vehicle rental company shall include on the web site an electronic disclosure that meets the requirements of §F of this regulation:

(1) As part of any description of the insurance coverage that is included on the web site; and

(2) On the same screen in close proximity to any click-through process or other electronic process that allows a prospective renter to indicate that the prospective renter would like to purchase insurance.

E. Completion of Transaction.

(1) When a renter goes to the business premises of a motor vehicle rental company to take possession of a vehicle pursuant to a rental agreement, the renter may reject or select any insurance coverage offered in connection with, and incidental to, the rental agreement regardless of any previous decision that the renter made by telephone or over the internet regarding insurance coverage.

(2) An insurer, or a motor vehicle rental car company on behalf of an insurer, may not charge a renter a premium for any insurance coverage that the renter rejects when the renter takes possession of a vehicle regardless of any previous decision that the renter made by telephone or over the internet regarding insurance coverage.

F. Form and Content of Disclosure. The disclosures required by §§A—D of this regulation shall include the following:

(1) A summary that clearly and correctly describes the material terms of coverage offered to the renter, including any limitations or exclusions pertaining to that coverage;

(2) The name of the authorized insurer;

(3) A statement that the coverage offered by the motor vehicle rental company may provide duplication of coverage already provided by the renter's personal automobile insurance policy, homeowner's insurance policy, personal liability policy, or other source of coverage;

(4) A statement, if in writing in at least 10-point type, that:

"You may not need the automobile insurance offered by the (insert motor vehicle rental company name). Your automobile insurance policy may provide coverage for your liability while operating a rental vehicle. You should check the terms and conditions of your automobile insurance policy to determine if coverage is provided for this rental. The purchase of insurance is not required as a condition of renting an automobile. In addition, if you are driving this rental vehicle due to an accident or repairs, state law may require your personal automobile liability policy to provide coverage and purchase of any excess liability coverage may duplicate coverage required by law to be provided by the owner of the rental vehicle."; and

(5) A description of the process through which the renter can file a claim, including the insurer's address, and where the claim should be filed.

G. Filing and Approval of Disclosure.

(1) Before providing the written disclosure required by §B of this regulation to a prospective renter, a motor vehicle rental company shall file with the Commissioner a copy of all written materials containing the disclosure.

(2) Before providing the oral disclosure required by §C of this regulation to a prospective renter over the telephone, a motor vehicle rental company shall file the text of the oral disclosure with the Commissioner.

(3) Before providing the electronic disclosure required by §D of this regulation to a prospective renter through a web site, a motor vehicle rental company shall:

(a) Provide the Commissioner with access to an electronic prototype of the web site; or

(b) File with the Commissioner a printout of each screen that contains the disclosure.

(4) The Commissioner may disapprove a written, oral, or electronic disclosure at any time if the Commissioner determines that the disclosure does not comply with Insurance Article, §10-604, Annotated Code of Maryland.

(5) If the Commissioner does not disapprove a written or oral disclosure, the disclosure is deemed to be approved 60 days after filing.

(6) If the Commissioner does not disapprove an electronic disclosure through a web site, the disclosure is deemed to be approved 60 days after:

(a) The Commissioner is provided with access to an electronic prototype of the web site; or

(b) A printout of each screen that contains the disclosure is filed with the Commissioner.

(7) The Commissioner may extend the time for review of a disclosure under §G(5) or (6) of this regulation for not more than 30 days.