A license as an insurance producer is not required for the counter sales personnel of an automobile rental company or its franchisee if:

Terms Used In North Dakota Code 26.1-26-52

  • following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
  • Process: means a writ or summons issued in the course of judicial proceedings. See North Dakota Code 1-01-49
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
  • written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37

1.    The automobile rental company is appropriately licensed in this state under subsection 4 of section 26.1-26-13.3 or is affiliated with an appropriately licensed North Dakota insurance producer.

2.    The coverage offered by the counter sales personnel is limited to the following:

a.    Personal accident insurance covering the risks of travel, including accident and health insurance that provides coverage to renters and other rental vehicle occupants for accidental death or dismemberment and for medical expenses resulting from an accident that occurs during the rental period; b.    Supplemental liability insurance that must include uninsured and underinsured motorist coverage, either offered separately or in combination with other liability insurance, and that provides coverage to renters and other authorized drivers for liability arising from the operation of the rental vehicle;    c.    Personal effects insurance that provides coverage to renters 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; and

e.    Any other coverage that a rental company offers in connection with and incidental to the rental of vehicles.

3.    The rental period is ninety days or less.

4.    The automobile rental company files an acknowledgement with the commissioner that its counter sales personnel act on its behalf and that it is responsible for any representations made by the counter sales personnel relating to insurance products offered through the automobile rental company or its franchisee. The acknowledgement must state that the commissioner has the right to take any administrative action contemplated in this title, including revocation or suspension of the license required under subsection 1.

5.    The automobile rental company provides basic training to counter sales personnel in the insurance products offered under this section. The training must require counter sales personnel to refer all customers with questions regarding the insurance products offered under this section to appropriately licensed insurance producers employed by the automobile rental company or to written brochures or other materials that:

a.    Summarize the material terms of the coverage, including the identity of the insurer; b.    Disclose that the policies offered by the automobile rental company may duplicate coverage already provided by other insurance the renter may have; c.    State that the purchase of insurance is not required to rent the vehicle; and d.    Describe the process of filing a claim.

6. The counter sales personnel are not directly paid by an insurance company, a commission, or any other compensation for the sale of insurance. Nothing in this section prevents the automobile rental company from including the insurance products in an overall employee performance compensation incentive program.

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