2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 522A - SALE OF INSURANCE BY VEHICLE RENTAL COMPANIES
522A.3 - LIMITED LICENSES.

        522A.3  LIMITED LICENSES.
         1.  Notwithstanding the provisions of chapter 522B, the
      commissioner may issue a limited license to a rental company that has
      complied with the requirements of this chapter.  The limited license
      shall authorize the limited licensee to offer or sell insurance with
      the rental of vehicles.
         2.  As a prerequisite for issuance of a limited license under this
      section, a written application for a limited license, which is signed
      by an officer of the applicant, shall be filed with the commissioner.
      The application shall be in a form and contain information prescribed
      by the commissioner.  The application shall include a list of all
      rental locations where the rental company intends to conduct
      business.  An updated list shall be provided to the commissioner
      within thirty business days from any date on which the list is
      amended.
         3.  If a provision of this section is violated by a limited
      licensee, the commissioner may, after notice and a hearing, revoke or
      suspend a limited license issued under this section, or impose any
      other penalties, including suspending permission for the transaction
      of insurance offers or sales at specific rental locations where
      violations of this section have occurred, as the commissioner deems
      to be necessary or convenient to carry out the purposes of this
      section.
         4.  A rental company licensed pursuant to this section may offer
      or sell insurance issued by an insurance carrier authorized to do
      business in this state and only in connection with and incidental to
      the rental of a vehicle.  A renter shall not be required to purchase
      coverage in order to rent a vehicle.  The type of insurance offered
      or sold by a limited licensee, whether at the rental office or by
      preselection of coverage in a master, corporate, group rental, or
      individual agreement, may be in any of the following general
      categories:
         a.  Personal accident insurance covering the risks of travel,
      including, but not limited to, accident and health insurance that
      provides coverage, as applicable, to a renter and other rental
      vehicle occupants for accidental death or dismemberment and
      reimbursement for medical expenses resulting from an accident that
      occurs during the rental period.
         b.  Liability insurance that provides coverage, as applicable,
      to a renter and other authorized drivers of rental vehicles for
      liability arising from the operation of the rental vehicle.
         c.  Personal effects insurance that provides coverage, as
      applicable, to a renter and other vehicle occupants for the loss of,
      or damage to, personal effects that occurs during the rental period.

         d.  Roadside assistance and emergency sickness protection
      programs.
         5.  Insurance shall only be sold by a limited licensee pursuant to
      this section if all of the following apply:
         a.  The rental period of the rental agreement does not exceed
      ninety consecutive days.
         b.  At every rental location where a rental agreement is
      executed, brochures or other written materials are readily available
      to a prospective renter that include all of the following
      information:
         (1)  A clear and correct summary of the material terms of coverage
      offered to renters, including the identity of the insurer.
         (2)  A disclosure that the coverage offered by the rental company
      may provide a duplication of coverage already provided by a renter's
      personal automobile insurance policy, homeowner's insurance policy,
      personal liability insurance policy, or other source of coverage.
         (3)  A statement that the purchase by a renter of the types of
      coverage specified in this section is not required in order to rent a
      vehicle.
         (4)  A description of the process for filing a claim in the event
      a renter elects to purchase coverage and in the event of a claim.
         c.  Evidence of coverage in the rental agreement is provided
      to every renter who elects to purchase such coverage.
         d.  A fee, compensation, or commission is not paid to an
      employee by a rental company dependent solely on the sale of
      insurance under any limited license issued pursuant to this section.

         6.  Any limited license issued under this section shall authorize
      a counter employee of the limited licensee to act individually on
      behalf, and under the supervision, of the limited licensee with
      respect to the offer and sale of coverage specified in this section.

         7.  A rental company counter employee must successfully pass an
      examination covering the insurance products offered for sale by the
      rental company in connection with and incidental to the rental of
      vehicles by the rental company.  The examination shall be approved
      and administered by the insurance division or a vendor approved by
      the insurance division pursuant to section 522A.6.  The counter
      employee shall file an application with the commissioner for an
      individual license.  Any application shall be deemed approved unless
      the commissioner notifies the rental company of the denial or
      rejection of the application within thirty days of receiving the
      application.  An application shall not include requirements greater
      in scope than defined in this section.
         8.  A limited licensee pursuant to this section shall not be
      required to treat moneys collected from renters purchasing insurance
      when renting vehicles as moneys received in a fiduciary capacity,
      provided that the charges for coverage are itemized and are ancillary
      to a rental agreement.  The offer or sale of insurance not in
      conjunction with a rental agreement shall not be permitted.
         9.  A limited licensee under this section shall not advertise,
      represent, or otherwise hold itself out or hold any of its employees
      out as licensed insurers, insurance agents, or insurance brokers.
         10.  A limited licensee shall not engage in this state in any of
      the following:
         a.  A trade practice defined in chapter 507B as, or determined
      pursuant to section 507B.6 to be, an unfair method of competition or
      an unfair or deceptive act or practice in the business of insurance.

         b.  An illegal sales practice or unfair trade practice as
      defined in rules adopted pursuant to chapter 17A by the commissioner.

         11.  An individual license, authorization, and certification to
      offer or sell insurance products under this chapter shall expire when
      the counter employee's employment terminates with the rental company.
      

         99 Acts, ch 143, §3; 2000 Acts, ch 1058, §48; 2001 Acts, ch 16,
      §12, 37
         Referred to in § 522A.6