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.

Terms Used In Iowa Code 522A.3

  • Commission: means the real estate commission as established by chapter 543B. See Iowa Code 543C.1
  • Commissioner: means the commissioner of insurance appointed pursuant to section 505. See Iowa Code 522A.2
  • Counter employee: means any employee at least eighteen years of age employed by a rental company that offers the products described in this chapter. See Iowa Code 522A.2
  • Dependent: A person dependent for support upon another.
  • Fiduciary: A trustee, executor, or administrator.
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Insurer: means a person duly licensed in this state as an insurance company pursuant to this subtitle. See Iowa Code 510.1B
  • Limited licensee: means a person at least eighteen years of age or an entity authorized to sell certain insurance coverages relating to the rental of vehicles. See Iowa Code 522A.2
  • Rental agreement: means any written agreement setting forth the terms and conditions governing the use of a vehicle provided by a rental company for rental. See Iowa Code 522A.2
  • Rental company: means any person or entity in the business of primarily providing vehicles intended for the private transportation of passengers to the public under a rental agreement for a period not to exceed ninety days. See Iowa Code 522A.2
  • Rental period: means the term of the rental agreement. See Iowa Code 522A.2
  • Renter: means any person obtaining the use of a vehicle from a rental company under the terms of a rental agreement for a period not to exceed ninety days. See Iowa Code 522A.2
  • Sale: means any sale, offer for sale, or attempt to sell or lease any land, to the public in this state, for cash or on credit. See Iowa Code 543C.1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
  • Transaction: means a sale, trade, exchange, transfer, payment, or conversion of a digital asset or any other property or any other action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. See Iowa Code 554E.1
  • Vehicle: means a motor vehicle under section 321. See Iowa Code 522A.2
 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.
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