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An Act relative to rental vehicle and replacement vehicle transactions and services. |
Be it enacted by the Senate and House
of Representatives in General Court assembled, and by the authority of the
same, as follows:
SECTION 1. Section 32E½ of chapter 90 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by inserting, after the definition of “Rental Agreement”, the following definition:-
“Third party biller”, any person or organization in the business of processing, paying or monitoring the payment of rental and replacement vehicle transactions and services on behalf of an insurance carrier or insurance producer.
SECTION 2. Chapter 90 of the General Laws is hereby amended by inserting after section 32E½ the following section:-
Section 32E¾. A rental company acting as a third party biller for an insurance company, whether a carrier or a producer, shall not provide rental and replacement vehicle transactions and services for said insurance company. A third-party biller for an insurance company, whether a carrier or producer, shall not have a business relationship, including stock ownership, with a rental company. A rental company or third party biller violating the provisions of this paragraph shall be subject to a fine not to exceed $1,000 per violation.
All third-party billers shall file an annual report with the division of insurance including, without limitation, a statement of ownership on a schedule prescribed by the division and copies of all contracts with insurance companies for third-party billing services delineating the provisions of the business relationship, excluding the amount of consideration provided for third-party billing services. A third-party biller violating the provisions of this paragraph shall be subject to a fine not to exceed $5,000 per violation.
The division of insurance shall be responsible, and may promulgate regulations, for the administration and enforcement of this section.