Licensing Requirements for Rental Car Companies
In order to obtain a rental car limited insurance license, the Rental Car Company must:
Properly completed Application (SCID 3700).
If organized as a corporation, attach to the application a Certificate of Authority or Certificate of Existence received from the State of South Carolina Secretary of State's Office. If the rental car company is organized as a partnership, it must attach to the application a copy of the partnership agreement. If the rental car company has been licensed in any other manner, it must provide certification of licensure.
Upon completion of the licensing application, the rental car company must submit its application package to the licensing and appointing insurer.
Rental car company renewal is biennially in December of even numbered years.
LICENSING REQUIREMENTS
Upon receiving the completed application from a rental car company, the licensing and appointing insurer must ensure that the application (SCID 3700) is properly completed, and the appointment form (SCID 3705) is properly completed.
The insurer must indicate the type of coverage the rental car company is authorized to offer or sell on its behalf.
The insurer must attach to the appointment form, the original license application with attachments completed by the rental car company, remit a check from the insurer for $40, and forward the entire licensing packet to the South Carolina Department of Insurance for review and consideration.
Upon approval by the Department, the license will be mailed directly to the rental car company.
The rental car company is responsible for notifying the insurer upon receipt of its license.
WHO MAY OFFER OR SELL INSURANCE
Only employees of the rental car company who have received training on the insurance product may offer or sell insurance.
Before employees are eligible to offer or sell insurance products, they must receive training on the protection afforded under the policy, to include, but not limited to, the respective policy's insuring agreements, exclusions and/or conditions. Rental car companies must retain all records of training provided to employees regarding insurance products and maintain those records for a minimum of five years. Training records must be made available immediately upon request for inspection by the Department.
The rental car company and appointing insurer will be held liable for any acts and/or omissions of individuals offering or selling insurance products to renters.
TYPES OF INSURANCE THAT MAY BE OFFERED
Personal accident insurance: This provides coverage for the risks of travel, including, but not limited to, accident and health insurance, as applicable, to renters and other rental vehicle occupants for accidental injury or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period.
Liability insurance: This insurance, at the exclusive option of the rental company, may include uninsured and underinsured motorist coverage offered separately or in combination with other liability insurance that provides protection, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle;
Personal effects insurance: This insurance provides coverage, as applicable, to renters and other vehicle occupants for the loss or damage to personal effects that occur during the rental period.
Roadside assistance and emergency sickness protection programs: This coverage provides protection to renters for emergency vehicle and emergency health services required while traveling.
Any other travel or vehicle related coverage that a rental company offers in connection with and is incidental to the rental of vehicles.
RESTRICTIONS
Insurance may not be offered or sold by a limited licensee unless:
The rental agreement is for a period of less than ninety consecutive days;
The rental car company's licensee must first inform the renter that he/she may already have insurance policies in place that provide the same coverage being offered by the rental car company. The rental car application must contain a section for the renter's initials or signature reflecting their acknowledgement;
Every location where rental agreements are executed involving the offer or sale of insurance products must have brochures or other written materials readily available to prospective renters. The written material must clearly:
Summarize the material terms of coverage offered to renters, including the identity of the insurer;
Disclose that the coverage offered by the rental car company may be a duplication of coverage already provided by a renter's other insurance policies or other sources of coverage;
State that the renter's purchase of insurance coverage offered by the rental car company's limited insurance license is not required in order to rent a vehicle;
Describe to the renter the process for filing a claim if the renter elects to purchase coverage and in the event of a claim; and
Disclose to the renter information regarding dispute handling. Disclose that disputes involving insurance must first be handled with the rental car company and the insurer. However, if the dispute cannot be resolved, the renter may contact the South Carolina Department of Insurance's Consumer Services Division at (803) 737-6150 or 1-800-768-3467 for assistance.
The rental agreement must contain a section on the application for the renter's initial(s) or signature(s) reflecting their acknowledgement that insurance written material was provided and that they understood the insurance requirements before coverage was purchased.
RENTAL MULTIPLE LOCATIONS
Until further notice, only one limited insurance license will be required for rental car companies with multiple locations. The application for a limited insurance license requires that all rental car outlets be identified in the licensing application. Rental car companies must notify the Department within 10 days of the effective date of any additions or changes in locations. The notification must be mailed to the Department's Individual Licensing Section on the rental car company's official letterhead and signed by an officer of the company.
