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§47-8-101.
§47-8-101.
(a) It shall be unlawful for the owner of any motor vehicle engaged in
the business of renting motor vehicles without drivers to rent a motor
vehicle without a driver otherwise than as a part of a bona fide
transaction involving the sale of such motor vehicle, unless he has
previously notified the Department of the intention to so rent such
vehicle and has given proof of financial responsibility, and the Tax
Commission shall not register any such vehicle unless and until the
owner gives proof of financial responsibility either as provided in
this section or, in the alternative, as provided in Section 8-102 of
this title. The Department shall cancel the registration of any motor
vehicle rented without a driver whenever the Department ascertains
that the owner has failed or is unable to give and maintain such proof
of financial responsibility.
(b) Such owner shall submit to the Commissioner evidence that there
has been issued to him by an insurance carrier authorized to do
business in this state a public liability insurance policy or policies
covering each such motor vehicle so rented in the amounts as
hereinafter stated and insuring every person operating such vehicle
under a rental agreement or operating the vehicle with the express or
implied permission of the owner against loss from the liability
imposed by law upon such person arising out of the operation of said
vehicle in the amount of Twenty Thousand Dollars ($20,000.00) for
bodily injury to or death of one person and, subject to said limit as
respects bodily injury to or death of any one person, the amount of
Forty Thousand Dollars ($40,000.00) on account of bodily injury to or
death of more than one person in any one accident and Ten Thousand
Dollars ($10,000.00) for damage to property of others in any one
accident. Provided, that the Commissioner is authorized to accept, in
lieu of such public liability insurance policy covering specific
vehicles, proof by evidence satisfactory to the Commissioner of a
valid and binding lease contract between the owner and a renter
wherein it is agreed between such owner and the lessee-renter that
such lessee-renter accepts responsibility for loss from any liability
imposed by law upon any person arising out of the operation, either by
express or implied permission of the lessee-renter, of any vehicle
covered by such lease in amounts not less than the minimum amounts
before set out in this subsection, together with satisfactory evidence
of issuance to such lessee-renter, by an insurance carrier authorized
to do business in this state, proper public liability insurance
policies in amounts of not less than the minimum amounts before set
out in this subsection or sufficient showing of financial
responsibility of such lessee-renter as is required of owners by the
provisions of Section 8-102 of this title.
(c) The owner shall maintain such policy or policies in full force and
effect during all times that he is engaged in the business of renting
any motor vehicle without a driver unless said owner shall have given
proof of financial responsibility as provided in Section 8-102 of this
title.
(d) Said policy or policies need not cover any liability incurred by
the renter of any vehicle to any passenger in such vehicle.
(e) When any suit or action is brought against the owner of a for-rent
motor vehicle upon a liability under this title, it shall be the duty
of the judge of the court before whom the case is pending to cause a
preliminary hearing to be had, in the absence of the jury, for the
purpose of determining whether the owner has obtained and there is in
full force and effect, a policy or policies of insurance covering the
person operating the vehicle under a rental agreement, in the limits
above mentioned. When it appears that the owner has obtained such
policy or policies and that the same are in full force and effect, the
judge or magistrate before whom such action is pending shall dismiss
the action as to the owner of the motor vehicle.
(f) Whenever the owner of a motor vehicle rents such vehicle without a
driver to another, it shall be unlawful for the latter to permit any
other person to operate such vehicle without the permission of the
owner.
(g) Any person who violates any of the provisions of this section
shall be guilty of a misdemeanor, and upon conviction thereof, shall
be punished by a fine of not more than Five Hundred Dollars ($500.00)
or by imprisonment in the county jail for not more than six (6)
months, or by both such fine and imprisonment.
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