Maryland Code § CL-14-2101

Section CL-14-2101
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(a) (1) In this section the following words have the meanings indicated.
(2) "Car sharing period" has the meaning stated in § 19-520 of the
Insurance Article.
(3) "Collision damage waiver" means:
(i) With respect to a rental agreement, any contract, whether
separate from or part of a rental agreement, in which the lessor agrees, for a charge,
to waive all or part of any claims against the lessee for damages to the rental motor
vehicle during the term of the rental agreement; and
(ii) With respect to a peer-to-peer car sharing program
agreement, a provision in the peer-to-peer car sharing program agreement in which
it is agreed, for a charge, that all or part of any claims against a shared vehicle driver
for damages to a shared motor vehicle during a car sharing period are waived.

(4) "Lessee" means any person obtaining the use of a rental motor
vehicle from a lessor under the terms of a rental agreement.
(5) "Lessor" means any person in the business of providing rental
motor vehicles to the public.
(6) "Passenger car" means any motor vehicle that is:
(i) A Class A (passenger) vehicle under § 13-912 of the
Transportation Article;
(ii) A Class M (multipurpose) vehicle under § 13-937 of the
Transportation Article if the vehicle is used primarily for transporting passengers; or
(iii) A Class E (truck) vehicle that is used primarily for
personal, household, family, or agricultural purposes and that, under § 13-917 of the
Transportation Article, does not exceed a three-quarter ton capacity or 7,000 pounds
gross vehicle weight.
(7) "Peer-to-peer car sharing program agreement" has the meaning
stated in § 19-520 of the Insurance Article.
(8) "Rental agreement" means a written agreement setting forth the
terms and conditions governing the use of a rental motor vehicle by a lessee for a
period of less than 180 days.
(9) "Rental motor vehicle" means a passenger car which, on execution
of a rental agreement, is made available to a lessee for the lessee's use.
(10) "Shared motor vehicle" has the meaning stated in § 19-520 of the
Insurance Article.
(11) "Shared vehicle driver" has the meaning stated in § 19-520 of the
Insurance Article.
(b) The Division shall develop a form for collision damage waivers for
lessors and for peer-to-peer car sharing programs, and shall make it available to all
lessors and peer-to-peer car sharing programs in the State.
(c) The form shall meet the requirements specified in subsection (e) of this
section.
(d) (1) A lessor may not deliver or issue for delivery in this State a rental
motor vehicle agreement containing a collision damage waiver, unless the lessor uses

a separate collision damage waiver form provided by the Division that meets the
requirements specified in subsection (e) of this section.
(2) A peer-to-peer car sharing program may not deliver or issue for
delivery in the State a peer-to-peer car sharing program agreement containing a
collision damage waiver, unless the peer-to-peer car sharing program uses a
separate collision damage waiver form provided by the Division that meets the
requirements specified in subsection (e) of this section.
(e) The collision damage waiver form shall contain the following
requirements:
(1) The collision damage waiver shall be understandable and written
in simple and readable plain language;
(2) The terms of the collision damage waiver, including, but not
limited to, any conditions or exclusions applicable to the collision damage waiver,
shall be prominently displayed;
(3) All restrictions, conditions, or provisions in, or endorsed on, the
collision damage waiver are printed in type at least as large as Brevier or 10 point
type;
(4) The collision damage waiver shall include a statement of the total
charge for the anticipated rental period or car sharing period or the anticipated total
daily charge;
(5) The agreement containing the collision damage waiver shall
display the following notice on the face of the agreement, set apart and in boldface
type, and in type at least as large as 10 point type:
"Notice:
This contract offers, for an additional charge, a collision damage waiver to
cover your responsibility for damage to the vehicle. Before deciding whether to
purchase the collision damage waiver, you may wish to determine whether your own
automobile insurance affords you coverage for damage to the rental vehicle or shared
motor vehicle and the amount of the deductible under your own insurance coverage.
The purchase of this collision damage waiver is not mandatory and may be waived.
Maryland law requires that all Maryland residents' insurance policies with collision
coverage automatically extend that collision coverage to passenger cars rented or
motor vehicles shared by the insureds named in the policy for a period of 30 days or
less."; and

(6) Any additional information that the Division considers
reasonable and necessary to carry out the provisions of this subtitle.
(f) A failure by a lessor to comply with subsection (d) of this section is an
unfair or deceptive trade practice within the meaning of Title 13, Subtitle 3 of this
article.

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