2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 516D - RENTAL OF MOTOR VEHICLES
516D.4 - COLLISION DAMAGE AND LOSS.

        516D.4  COLLISION DAMAGE AND LOSS.
         1.  A rental company shall not hold, or attempt to hold, an
      authorized driver liable for physical damage to a rental vehicle,
      loss due to theft of a rental vehicle, or damages resulting from the
      loss of use of a rental vehicle, unless the rental company offers the
      customer a collision damage waiver under the terms and conditions
      described in subsection 2 of this section, or unless one or more of
      the following applies:
         a.  The damage or loss is caused intentionally by an
      authorized driver or is a result of the authorized driver's willful,
      abusive, reckless, or wanton misconduct.
         b.  The damage or loss arises out of the authorized driver's
      operation of the rental vehicle while intoxicated or under the
      influence of a drug.
         c.  The damage or loss is caused while the authorized driver
      is engaged in a race, training activity, contest, or use of the
      rental vehicle for an illegal purpose.
         d.  The rental agreement is based on false or misleading
      information supplied by the customer or an authorized driver.
         e.  The damage or loss is caused by operating the rental
      vehicle other than on regularly maintained hard surface roadways,
      including private driveways and parking lots.
         f.  The damage or loss arises out of the use of the rental
      vehicle to transport persons or property for hire or to push or tow
      anything.
         g.  The damage or loss occurs while the rental vehicle is
      operated by a driver other than an authorized driver.
         h.  The damage or loss arises out of the use of the rental
      vehicle outside the continental United States unless such use is
      specifically authorized by the rental agreement.
         i.  The damage or loss is attributable to theft which occurs
      with the prior knowledge or knowing participation of an authorized
      driver, or which is attributable to the authorized driver leaving the
      rental vehicle unattended with the keys in the rental vehicle.
         This section does not alter the liability of a customer or
      authorized driver for bodily injury or the death of another and for
      property damage other than to the rental vehicle in accordance with
      the rental agreement.  This section does not prohibit a rental
      company from accepting or negotiating master contracts with companies
      or government entities in advance of need whereby the companies or
      government entities specifically agree to assume liability in
      exchange for rate concessions.  This section does not prohibit a
      rental company from entering into agreements with insurance companies
      to provide replacement vehicles to insurance company customers
      whereby the insurance company agrees to assume the risk of loss.
         If the rental vehicle is not repaired, damages shall not exceed
      the fair market value of the vehicle, as determined in the customary
      market for that vehicle, less salvage or actual sale value, plus
      additional license and tax fees incurred because of the sale, plus
      administrative fees.  A claim shall not be made for loss of use if
      the rental vehicle is not repaired.
         2.  A rental company may offer a collision damage waiver under the
      following terms and conditions:
         a.  All restrictions, conditions, and exclusions must be
      printed in the rental agreement, or on a separate sheet or document,
      in ten point type, or larger; or written in pen and ink or
      typewritten in or on the face of the rental agreement in a blank
      space provided for such restrictions, conditions, and exclusions.
      The rental agreement may provide that the collision damage waiver may
      be voided under the conditions set forth in subsection 1, paragraphs
      "a" through "i".
         b.  The rental agreement, separate sheet, or document must
      clearly and conspicuously state both the daily and estimated total
      charge for the collision damage waiver.
         c.  The rental agreement, separate sheet, or document given to
      the customer prior to entering into the rental agreement must display
      in ten point type, or larger, the following notice:

         NOTICE:  THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, A
      COLLISION DAMAGE WAIVER TO COVER ALL OR PART OF YOUR RESPONSIBILITY
      FOR DAMAGE TO THE RENTAL VEHICLE.
         BEFORE DECIDING WHETHER TO PURCHASE THE COLLISION DAMAGE WAIVER,
      YOU MAY WISH TO DETERMINE WHETHER YOUR OWN AUTOMOBILE INSURANCE
      AFFORDS YOU COVERAGE FOR DAMAGE TO THE RENTAL VEHICLE AND THE AMOUNT
      OF THE DEDUCTIBLE UNDER YOUR OWN INSURANCE COVERAGE.  THE PURCHASE OF
      THIS COLLISION DAMAGE WAIVER IS NOT MANDATORY AND MAY BE DECLINED.

         The customer must separately acknowledge that the customer
      received the above notice, that the customer desires to purchase the
      collision damage waiver, and the terms of the collision damage waiver
      to which the customer agrees.
         d.  The car rental company shall not pay commissions to a
      rental counter agent or representative for selling collision damage
      waivers and is prohibited from considering volume of sales of
      collision damage waivers in an employee evaluation or determination
      of promotion.
         However, notwithstanding whether a rental company offers a
      collision damage waiver under the provisions of this subsection, the
      rental company shall not hold an authorized driver liable for damage
      or loss due to theft except where subsection 1, paragraph "i"
      applies.  

         91 Acts, ch 204, §4