HB 1090-1_ Filed 02/05/2009, 07:36 Torr
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that House Bill 1090 be amended to read as follows:
SOURCE: Page 1, line 1; (09)MO109002.1. -->
Page 1, delete lines 1 through 14, begin a new paragraph and insert:
SOURCE: IC 27-7-14; (09)MO109002.1. -->
"SECTION 1. IC 27-7-14 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]:
Chapter 14. Primary Motor Vehicle Insurance Coverage
Sec. 1. This chapter applies only to policies affording motor
vehicle insurance coverage that are issued or renewed after August
31, 1983.
Sec. 2. (a) The definitions set forth in this section apply
throughout this chapter.
(b) "Garage liability policy" refers to any motor vehicle liability
insurance policy that affords coverage to a named insured engaged
in the business of selling, leasing, repairing, servicing, delivering,
testing, road testing, parking, or storing motor vehicles, but does
not refer to a motor vehicle liability insurance policy that affords
coverage to a vehicle used in the business of transporting property
for hire.
(c) "Motor vehicle insurance coverage" means any type of
insurance coverage described in IC 27-1-5-1, Class 2(f).
(d) "Permittee" means any person who is granted permission to
operate a motor vehicle by the owner of the motor vehicle.
Sec. 3. (a) This section does not apply to cases covered by section
6 or 7 of this chapter.
(b) In any case arising from a permittee's use of a motor vehicle
for which the owner of the vehicle has motor vehicle insurance
coverage, the owner's motor vehicle insurance coverage is
considered primary if both of the following apply:
(1) The vehicle, at the time damage occurred, was operated
with the permission of the owner of the motor vehicle.
(2) The use was within the scope of the permission granted.
(c) The permittee may not recover under any other motor
vehicle insurance coverage available to the permittee until the limit
of all coverage available to the permittee under the owner's policy
is first exhausted.".
SOURCE: Page 2, line 7; (09)MO109002.2. -->
Page 2, delete lines 7 through 9, begin a new paragraph and insert:
" Sec. 4. (a) When a claim arises from the operation of a motor
vehicle leased under a written lease agreement, if under the
agreement the lessee agrees to provide coverage for damage
resulting from his operation of the vehicle, then the motor vehicle
insurance coverage of the lessee is primary. No claim may be made
against any coverage available for the vehicle by the lessor until the
limits of the motor vehicle insurance coverage provided by the
lessee for the vehicle are exhausted.
(b) When a claim arises from the operation of a motor vehicle
that is used in the business of transporting property for hire and
leased under a written lease agreement, if under the agreement the
lessor and lessee agree as to which coverage of the parties' motor
vehicle insurance is primary coverage, then the policy of insurance
providing that coverage is primary and no claim may be made
against any other coverage for the vehicle until the limits of that
policy are exhausted.
Sec. 5. (a) As used in this section, "rental agreement" means a
written contract:
(1) that authorizes a renter to use a motor vehicle made
available by a rental company;
(2) under which a charge for use of the motor vehicle is made
at a periodic rate; and
(3) under which title to the motor vehicle is not transferred to
the renter.
(b) When:
(1) a claim arises from the operation of a motor vehicle that
is rented under a rental agreement; and
(2) under the rental agreement, the renter agrees to provide
insurance coverage for damage resulting from the renter's
operation of the motor vehicle;
the insurance coverage provided by the renter is primary.
(c) A claim described in subsection (b) may not be made by the
rental company against any insurance coverage available for the
motor vehicle until the limits of the insurance coverage provided
by the renter are exhausted.
(d) When:
(1) a claim arises from the operation of a motor vehicle that
is:
(A) used in the business of transporting property for hire;
and
(B) rented under a rental agreement; and
(2) under the rental agreement, the rental company and
renter agree as to which of the parties' insurance coverage is
primary for damage resulting from the renter's operation of
the motor vehicle;
the agreed upon primary insurance coverage is primary.
(e) A claim described in subsection (d) may not be made against
any insurance coverage available for the motor vehicle until the
limits of the agreed upon primary insurance coverage are
exhausted.
Sec. 6. (a) This section applies if the only motor vehicle
insurance coverage provided by the owner of the motor vehicle is
under a garage liability policy.
(b) Notwithstanding section 3 of this chapter, any coverage
available to the permittee is primary.
(c) Recovery may not be made under the garage liability policy
until the limits of all coverage available to the permittee have been
exhausted.
Sec. 7. (a) This section applies to a motor vehicle while under the
control of either of the following:
(1) A bailee.
(2) An agent or employee of a bailee.
(b) As used in this section, "bailee" refers only to a person who
is in the business of storing, parking, servicing, or repairing
vehicles.
(c) Notwithstanding section 3 of this chapter, any coverage
available to the bailee is primary.
(d) Recovery may not be made under the vehicle owner's policy
until the limits of all motor vehicle insurance coverage available to
the bailee have been exhausted.
SOURCE: IC 27-8-9; (09)MO109002.2. -->
SECTION 2. IC 27-8-9 IS REPEALED [EFFECTIVE JULY 1,
2009]
SOURCE: ; (09)MO109002.3. -->
SECTION 3. [EFFECTIVE JULY 1, 2009]
(a) IC 27-7-14-3(c), (d),
and (e), as added by this act, apply to a case arising after June 30,
2009.
(b) Notwithstanding the repeal of IC 27-8-9-7 by this act,
IC 27-8-9-7, before its repeal by this act, applies to a case arising
before July 1, 2009.
(c) IC 27-7-14-5, as added by this act, applies to a claim arising
after June 30, 2009.
(d) This SECTION expires July 1, 2014.".
(Reference is to HB 1090 as printed February 3, 2009.)
________________________________________
MO109002/DI 97 2009