(1) A dealer shall maintain in safe operating condition an ORV rented, leased, or furnished by the dealer. The dealer, dealer’s agents, or employees shall explain the operation of the vehicle being rented, leased, or furnished, and if the dealer, dealer’s agent, or employee believes the person to whom the vehicle is to be rented, leased, or furnished is not competent to operate the vehicle with safety to that person or others, the dealer, dealer’s agent, or employee shall refuse to rent, lease, or furnish the vehicle.

  (2) A dealer renting, leasing, or furnishing a vehicle shall carry a policy of liability insurance subject to limits, exclusive of interest and costs, with respect to the vehicle, as follows: $20,000.00 because of bodily injury to, or death of, 1 person in any 1 accident, and $40,000.00 because of bodily injury to, or death of, 2 or more persons in any 1 accident, and $10,000.00 because of injury to, or destruction of, property of others in any 1 accident, or alternatively, the dealer shall demand and be shown proof that the person renting, leasing, or being furnished a vehicle carries a liability policy of at least the type and coverage as specified above.