Third Substitute H.B. 342

Senator John L. Valentine proposes the following substitute bill:

1 RECOVERY OF ADMINISTRATIVE FEE FOR DAMAGES
2 SUSTAINED TO A RENTAL MOTOR VEHICLE
3 2002 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Greg J. Curtis
6 This act modifies the Insurance Code to authorize an administrative fee for damage
7 sustained to a rental vehicle.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 31A-22-311, as last amended by Chapter 316, Laws of Utah 1994
11 ENACTS:
12 31A-22-312.5, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 31A-22-311 is amended to read:
15 31A-22-311. Definitions.
16 As used in Sections 31A-22-312 , 31A-22-312.5 , and 31A-22-314 :
17 (1) "Administrative fee" means a fee collected under Section 31A-22-312.5 to offset
18 expenses incurred in administrating the collection and resolution of a claim.
19 [(1)] (2) "Authorized driver" means the person to whom the vehicle is rented and includes:
20 (a) his spouse if a licensed driver satisfying the rental company's minimum age
21 requirement;
22 (b) his employer or coworker if engaged in business activity with the renter and if they are
23 licensed drivers satisfying the rental company's minimum age requirement;
24 (c) any person who operates the vehicle during an emergency situation;
25 (d) any person who operates the vehicle while parking the vehicle at a commercial

26 establishment; or
27 (e) any person expressly listed by the rental company on the rental agreement as an
28 authorized driver.
29 [(2)] (3) "Damage" means any damage or loss to the rented vehicle [resulting from a
30 collision,] including:
31 (a) loss of use [and];
32 (b) any costs and expenses incident to the damage or loss[.];
33 (c) an administrative fee associated with the loss, as calculated under Section
34 31A-22-312.5 ; and
35 (d) any diminution of value of the rental vehicle as a result of the damage or loss.
36 [(3)] (4) "Rental agreement" means any written agreement stating the terms and conditions
37 governing the use of a private passenger motor vehicle provided by a rental company.
38 [(4)] (5) "Rental company" means any person or organization in the business of providing
39 private passenger motor vehicles to the public.
40 [(5)] (6) "Renter" means any person or organization obtaining the use of a private
41 passenger motor vehicle from a rental company under the terms of a rental agreement.
42 Section 2. Section 31A-22-312.5 is enacted to read:
43 31A-22-312.5. Limitation of administrative fee.
44 An administrative fee may not exceed:
45 (1) $50 when the estimated damage to the rental vehicle is $250 or less;
46 (2) $75 when the estimated damage to the rental vehicle is between $251 and $500;
47 (3) $100 when the estimated damage to the rental vehicle is between $501 and $750;
48 (4) $150 when the estimated damage to the rental vehicle is between $751 and $1,500;
49 (5) $200 when the estimated damage to the rental vehicle is between $1,501 and $2,500;
50 and
51 (6) $250 when the estimated damage to the rental vehicle exceeds $2,501.