STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, APPELLANT,
v.
LINDO'S RENT-A-CAR, INC., APPELLEE
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State Farm challenged a vehicle rental agreement's notice provision attempting to shift primary insurance liability from the lessor to the lessee's personal auto insurer. The court affirmed that the notice language complied with Florida Statute § 627.7263 and properly shifted primary liability.
The language in the vehicle rental agreement complies with the statute and properly shifts primary liability for liability insurance and personal injury protection insurance relating to the leased vehicle from the lessor and its insurer to the lessee's personal automobile insurer.
[1] A motor vehicle lessor's liability and personal injury protection insurance is primary unless otherwise stated in bold type on the face of the rental or lease agreement.
[2] A rental or lease agreement must contain a provision on its face, in bold type, informing the lessee that the lessor's insurance is primary unless otherwise stated, and p…
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Join FLexlaw to unlock all legal intelligence“The valid and collectible liability insurance or personal injury protection insurance providing coverage for the lessor of a motor vehicle for rent or lease shall be primary unless otherwise stated in bold type on the face of the rental or lease agreement.”
Establishes the statutory framework allowing lessor to shift primary insurance liability through proper notice in the rental agreement.
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Join FLexlaw to unlock all legal intelligenceLindo's Rent-A-Car included a notice in its rental agreement referencing Florida Statute § 627.7263 and electing to make the lessee's personal automob…
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COWART, Judge.
Section 627.7263, Florida Statutes, provides:
Rental and leasing driver’s insurance to be primary; exception (1) The valid and collectible liability insurance or personal injury protection insurance providing coverage for the lessor of a motor vehicle for rent or lease shall be primary unless otherwise stated in bold type on the face of the rental or lease agreement. Such insurance shall be primary for the limits of liability and personal injury protection coverage as required by ss. 324.021(7) and 627.736.
(2) Each rental or lease agreement between the lessee and the lessor shall contain a provision on the face of the agreement, stated in bold type, informing the lessee of the provisions of subsection (1) and shall provide a space for the name of the lessee’s insurance company if the lessor’s insurance is not to be primary.
The motor vehicle rental agreement in this case states:
Notice: Section 627.7263 of the Florida Statutes (1979) provides liability insurance or personal injury protection insurance providing coverage for the lessor of a motor vehicle for rent or lease shall be primary unless otherwise stated in bold type on the face of the rental or lease agreement. Accordingly, you are hereby notified that lessor is electing, in accordance with the aforesaid statute, to make your personal automobile insurance carrier primarily responsible for any and all claims arising out of your use and operation of this rental vehicle. Therefore, please enter the name of your personal automobile insurance company on the line provided below:
Appellant, the lessee’s personal automobile insurer, argues that the quoted language fails to inform the lessee of the second sentence of subsection (1) of the statute and fails to contain the lessee’s name or the name of the lessee’s insurer. We hold that the language in the vehicle rental agreement complies with the statute and serves to properly shift primary liability for liability insurance and personal injury protection (PIP) insurance relating to the leased vehicle from the lessor and its insurer to the lessee’s personal automobile insurer. See Gray v. Major Rent-A-Car, Inc., 563 So. 2d 176 (Fla. 5th DCA 1990); International Bankers Insurance Co. v. Snappy Car Rental, 553 So. 2d 740 (Fla. 5th DCA 1989).
AFFIRMED.
DAUKSCH and W. SHARP, JJ„ concur.
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Allstate Ins. Co. v. RJT Enters., Inc., 692 So. 2d 142 (Fla. 1997)…verage to the lessee’s insurance carrier when the lessee in fact has a primary liability insurance carrier.” See also Southeastern Fidelity Ins. Co. v. Cole, 493 So. 2d 445, 446 (Fla.1986); State Farm Mut. Auto. Ins. Co. v. Lindo’s Rent-A-Car, Inc., 588 So. 2d 36, 37 (Fla. 5th DCA 1991); International Ins. Co. v. Ryder Truck Rental, Inc., 555 So. 2d 1250, 1251 (Fla. 3d DCA 1989), review denied, 564 So. 2d 487 (Fla.1990). We agree with Allstate’s contention that the legislature never intended, through the st…
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Miami Stage Lighting, Inc. v. Budget Rent-A-Car Sys., Inc., 712 So. 2d 1135 (Fla. 3d DCA 1998)…ied Servs., Inc., 622 So. 2d 1372 (Fla. 4th DCA 1993); Government Employees Ins. Co. v. Ford Motor Credit Co., 616 So. 2d 1186 (Fla. 4th DCA), review dismissed, 624 So. 2d 265 (Fla.1993); State Farm Mutual Auto. Ins. Co. v. Lindo’s Rent-A-Car, Inc., 588 So. 2d 36 (Fla. 5th DCA 1991). But see International Bankers Ins. Co. v. Snappy Car Rental, 553 So. 2d 740 (Fla. 5th DCA 1989)(sufficient to notify les [*1137] see that lessee’s insurance applies). Budget’s clause is silent as to the statute’s existence. This…
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Interamerican CAR Rental, Inc. v. Safeway Ins. Co., 615 So. 2d 244 (Fla. 3d DCA 1993)…t his/her insurance carrier will be the primary liability insurance carrier on the rented automobile, and (b) Florida courts have held that such a provision fully complies with the statute. State Farm Mut. Auto. Ins. Co. v. Lindo’s Rent-A-Car, Inc., 588 So. 2d 36 (Fla. 5th DCA 1991); International Bankers Ins. Co. v. Snappy Car Rental, 553 So. 2d 740 (Fla. 5th DCA 1989); Guemes v. Biscayne Auto Rentals, Inc., 414 So. 2d 216, 218 (Fla. 3d DCA 1982). The final declaratory judgment under review is therefore rev…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Int'l Bankers Ins. Co. v. Snappy CAR Rental, 553 So. 2d 740 (Fla. 5th DCA 1989)
- Gray v. Major Rent-A-Car, Inc., 563 So. 2d 176 (Fla. 5th DCA 1990)