Title 15, Commerce and TradeRelease 119-110

§6781 Standard of Regulation for Motor Vehicle Rentals

Title 15 › CHAPTER 93 — INSURANCE › SUBCHAPTER IV — RENTAL CAR AGENCY INSURANCE ACTIVITIES › § 6781

Last updated Sep 22, 2026|Official source

Summary

For the three-year period beginning on November 12, 1999, it is assumed that states do not have the power to require licenses, appointments, or training for people who ask customers to buy or who sell insurance that is tied to renting or leasing a motor vehicle. That presumption can be limited by the exceptions below. This does not change any state law, the future effect of court decisions about state law, or the future effect of final state rules, orders, bulletins, or similar official actions that by their terms specifically regulate or exempt people who sell insurance for short-term car rentals. The rule applies to vehicle rentals or leases of 90 consecutive days or less, and to insurance that lasts no longer than the rental. "Motor vehicle" has the meaning given in section 13102 of title 49.

Full Legal Text

Title 15, §6781

Commerce and Trade, Source: USLM XML via OLRC

(a)Protection against retroactive application of regulatory and legal action
Except as provided in subsection (b), during the 3-year period beginning on November 12, 1999, it shall be a presumption that no State law imposes any licensing, appointment, or education requirements on any person who solicits the purchase of or sells insurance connected with, and incidental to, the lease or rental of a motor vehicle.
(b)Preeminence of State insurance law
No provision of this section shall be construed as altering the validity, interpretation, construction, or effect of— (1)
(2)the prospective application of any court judgment interpreting or applying any State statute; or
(3)the prospective application of any final State regulation, order, bulletin, or other statutorily authorized interpretation or action,
which, by its specific terms, expressly regulates or exempts from regulation any person who solicits the purchase of or sells insurance connected with, and incidental to, the short-term lease or rental of a motor vehicle.
(c)Scope of application
This section shall apply with respect to—
(1)the lease or rental of a motor vehicle for a total period of 90 consecutive days or less; and
(2)insurance which is provided in connection with, and incidentally to, such lease or rental for a period of consecutive days not exceeding the lease or rental period.
(d)Motor vehicle defined
For purposes of this section, the term “motor vehicle” has the same meaning as in section 13102 of title 49.

Reference

Citations & Metadata

Citation

15 U.S.C. § 6781

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110