H. B. 4626
(By Delegates Facemyer, L. White, H. White
and Beane)
[Introduced February 23, 2000; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact section twenty-nine, article six,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
motor vehicle insurance and coverage for loaned, leased or
rented vehicles.
Be it enacted by the Legislature of West Virginia:
That section twenty-nine, article six, chapter thirty-three
of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 6. THE INSURANCE POLICY.
§33-6-29. Motor vehicle policy; injuries to guest passengers;
coverage for loaned, leased or rented motor
vehicles; exceptions.
(a) An insurer shall may not issue any policy of bodily injury or property damage liability insurance which excludes
coverage to the owner or operator of a motor vehicle on account
of bodily injury or property damage to any guest or invitee who
is a passenger in such the motor vehicle.
(b) Every policy or contract of liability insurance which
insures a motor vehicle licensed in this state with collision,
comprehensive, property or bodily injury coverage shall must
extend these coverages to cover the insured individual while
operating a motor vehicle which he or she is permitted to use by
a person, firm or corporation that owns the vehicle and is
engaged in the business of selling, repairing, leasing or
servicing motor vehicles. Coverage under any motor vehicle
insurance policy available to such the insured individual shall
be is primary, and any collision, comprehensive, property or
bodily injury insurance coverage owned or obtained by a person,
firm or corporation that owns the motor vehicle and is engaged in
the business of selling, repairing, leasing or servicing motor
vehicles shall be is secondary. Recovery under the motor vehicle
owner's insurance policy shall is not be permitted until the
insured individual has exhausted the limits of all other
insurance policies available to him or her: Provided, That the
following conditions are met: (1) No separate consideration is
paid by or on behalf of the insured individual at the time of his
or her use of the vehicle; and (2) the insured individual is operating the vehicle with the business owner's permission as a
replacement vehicle provided to the insured individual while his
or her vehicle is out of use because it is being repaired or
serviced by the business owner or another person with the
permission of the business owner.
(c) Notwithstanding any provision of this section to the
contrary, any insurance coverage available to the insured
individual as described in the foregoing paragraph shall be is
secondary to any motor vehicle liability insurance owned or
obtained by the person, firm or corporation engaged in the
business of selling, repairing, leasing or servicing motor
vehicles, if the insured individual is an employee of the
business owner and is operating the motor vehicle with the
permission of the business owner while acting within the scope of
his or her employment or the insured individual is testing the
vehicle for possible purchase or for a lease with more than a
thirty-day term.
(d) Notwithstanding any other provision of this code to the
contrary, an individual's motor vehicle insurance is primary in
any case where a claim for liability or physical damage arises
from the operation of a motor vehicle that has been made
available, for a period of thirty days or less, by a person, firm
or corporation engaged in the business of selling, repairing,
leasing, renting or servicing motor vehicles, to an individual who is insured under a policy of motor vehicle insurance, for use
as a loaner vehicle or as a rental vehicle while the individual's
vehicle is being serviced, repaired or while the individual
requires the use of a rental vehicle for any reason from the
person, firm or corporation engaged in the business of selling,
repairing, leasing, renting or servicing motor vehicles. That
insurance must extend to the insured while operating a rented
vehicle. No claim may be made against the motor vehicle owner's
insurance policy or self-insurance unless the operator does not
have insurance coverage which meets the minimum limits required
in this state.
NOTE: This bill provides that when a claim arises from the
operation of a motor vehicle owned by a person, firm or
corporation engaged in the business of selling, repairing,
leasing, renting or servicing motor vehicles and loaned or rented
to the individual for use as a loaner or rental vehicle, the
individual's motor vehicle coverage is primary.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.