Permits for Rental Car Companies
Pursuant to Public Act 99-127, all rental car companies in the State of Connecticut that offer insurance of the types specified in Section (b) (1-4) of the cited legislation in connection with the rental of a vehicle, must apply for and obtain a permit from the Insurance Department to transact business in this limited capacity.
In accordance with Regulation 38a-xxx-1through 9, each car rental company granted a permit shall:
- Maintain a list of all employees who engage in insurance activities on behalf of the rental car company.
- Maintain a copy of all policy forms applicable to the insurance products available for sale through the rental company, and a record of the period during which these forms have been available, (i.e., form # ABC-001: in use 3/1/99 – 3/1/00).
- Each car rental company shall provide a training program to all employees who will be marketing insurance products to potential car renters. The training program must be in accordance with section 38a-xxx-5(b)(1-5) of the Connecticut Regulations.
- Maintain a copy of the outline, description and summary of the training program, which is being used to train employees of the rental car company.
- Insurance, of the types specified in PA 99-127 section b (1-4), may only be issued in conjunction with rental agreements of sixty consecutive days or less.
- Permittees must be "appointed" by the insurance company(ies) that they represent. "Appointed" means that the insurance company has provided the Connecticut Insurance Department with written authorization for the rental car agency to transact business on behalf of that insurance company. This "authorization" is part of the rental car agency’s permit application, which must be completed by the insurance company, and returned with the completed permit application.
- Permittees should review in detail the requirements set forth in CT Regulation, section 38a-xxx-4 (c, d, e, and f).