LRB-1256/1
EVM:amn
2017 - 2018 LEGISLATURE
April 7, 2017 - Introduced by Senators Petrowski and Lasee, cosponsored by
Representatives Spiros, R. Brooks and Kulp. Referred to Committee on
Insurance, Housing and Trade.
SB156,1,2 1An Act to amend 194.41 (1); and to create 194.01 (12m) of the statutes;
2relating to: insurance requirements for vehicle rental companies.
Analysis by the Legislative Reference Bureau
This bill specifies the circumstances under which a vehicle rental company is
subject to the minimum liability insurance policy limits applicable for motor carriers,
rather than the standard policy limits applicable to most vehicles.
Current law provisions relating to motor vehicle insurance requirements
require a lessor or rental company to have on file with the Department of
Transportation proof of motor vehicle liability insurance as a prerequisite to renting
or leasing a motor vehicle for compensation. The minimum policy limits required for
this insurance are, for each accident, $25,000 for bodily injury or death to one person
and $50,000 for bodily injury or death to more than one person, as well as $10,000
for property damage. For purposes of these provisions, a “lessor" and a “rental
company" are defined as a person who, for compensation, leases or rents,
respectively, a motor vehicle to a lessee or renter to be operated by or with the consent
of the lessee or renter or who acquires a contract for the leasing or renting of a motor
vehicle from another person.
Current law provisions relating to motor carriers also require a rental company
to have on file with DOT proof of motor vehicle liability insurance as a prerequisite
to registering a motor vehicle or obtaining a motor carrier operating permit. The
minimum policy limit required for this insurance is generally an amount specified
under federal law (generally $750,000), but for a vehicle with a gross weight of not
more than 10,000 pounds that is not transporting hazardous materials it is $300,000.

Current law does not define the term “rental company" for purposes of these motor
carrier insurance provisions.
This bill creates a definition of “rental company" for purposes of these motor
carrier insurance provisions. The bill defines a “rental company" as a person that
rents motor vehicles to common motor carriers of property, contract motor carriers,
or private motor carriers transporting hazardous materials. The bill also specifies
that these motor carrier insurance provisions are applicable only to a rental
company's vehicles that are rented to a common motor carrier of property, contract
motor carrier, or private motor carrier transporting hazardous materials.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB156,1 1Section 1. 194.01 (12m) of the statutes is created to read:
SB156,2,42 194.01 (12m) “Rental company" means a person that rents motor vehicles to
3common motor carriers of property, contract motor carriers, or private motor carriers
4transporting hazardous materials as listed under 49 CFR 172.101.
SB156,2 5Section 2. 194.41 (1) of the statutes is amended to read:
SB156,3,236 194.41 (1) No permit or vehicle registration may be issued to a common motor
7carrier of property, contract motor carrier, or rental company, no permit or vehicle
8registration may remain in force to operate any motor vehicle under the authority
9of this chapter, and no vehicle registration may be issued or remain in force for a
10semitrailer unless the carrier or rental company has on file with the department and
11in effect an approved certificate for a policy of insurance or other written contract in
12such form and containing such terms and conditions as may be approved by the
13department issued by an insurer authorized to do a surety or automobile liability
14business in this state under which the insurer assumes the liability prescribed by
15this section with respect to the operation of such motor vehicles. The certificate or
16other contract is subject to the approval of the department and shall provide that the

1insurer shall be directly liable for and shall pay all damages for injuries to or for the
2death of persons or for injuries to or destruction of property that may be recovered
3against the owner or operator of any such motor vehicles by reason of the negligent
4operation thereof in such amount as the department may require. Liability may be
5restricted so as to be inapplicable to damage claims on account of injury to or
6destruction of property transported, but the department may require, and with
7respect to a carrier transporting a building, as defined in s. 348.27 (12m) (a) 1., shall
8require, a certificate or other contract protecting the owner of the property
9transported by carriers from loss or damage in the amount and under the conditions
10as the department may require. No permit or vehicle registration may be issued to
11a common motor carrier of passengers by any motor vehicle, or other carrier of
12passengers by motor bus, except those registered in accordance with s. 341.26 (2) (a)
13and (d), and no permit or vehicle registration may remain in force to operate any
14motor vehicle unless it has on file with the department a like certificate or other
15contract in the form and containing the terms and conditions as may be approved by
16the department for the payment of damages for injuries to property and injuries to
17or for the death of persons, including passengers, in the amounts as the department
18may require. This subsection does not apply to a motor carrier that is registered by
19another state under the unified carrier registration system consistent with the
20standards under 49 USC 13908 and 14504a. With respect to a rental company, this
21subsection applies only to the rental company's vehicles that are rented to a common
22motor carrier of property, contract motor carrier, or private motor carrier
23transporting hazardous materials as listed under 49 CFR 172.101.
SB156,3,2424 (End)
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