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HB 1229 revise provisions related to primary insurance of rental cars.
State of South Dakota  
NINETY-FIRST SESSION
LEGISLATIVE ASSEMBLY, 2016  

715X0502   HOUSE BILL   NO.  1229  

Introduced by:    Representatives Romkema, Beal, Brunner, Deutsch, Dryden, Gibson, Jensen (Alex), Verchio, Wiik, Wollmann, and Zikmund and Senators Ewing, Buhl O'Donnell, Curd, Greenfield (Brock), Monroe, Novstrup (David), and Peters
 

        FOR AN ACT ENTITLED, An Act to revise provisions related to primary insurance of rental cars.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 58-23-4 be amended to read:
    58-23-4. When an automobile insurance policy is in force for anyone engaged in the business of selling, renting, repairing, servicing, storing, or parking motor vehicles and the person or organization allows the use of a vehicle with or without consideration to any other person or organization and the vehicle is involved in an accident out of which bodily injury or property damage to third persons or damage to the insured vehicle arises, the following automobile insurance policies shall be applicable:
            (1)    In the event no other automobile insurance policy is in force at the time of the accident for the person or organization using the vehicle, the coverage provided by the motor vehicle owner's automobile policy shall extend to the borrower in the event the owner's automobile insurance policy extends coverage to said borrower.
            (2)    In the event that another automobile insurance policy is in force for the person or organization using the vehicle, any coverage provided by the motor vehicle owner's automobile insurance policy shall be excess coverage only but limited by the terms of the owner's applicable automobile insurance policy. The coverages in the policy afforded the person or organization using the vehicle shall be primary.