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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: TI DP 7-0-0-0 | Third Read 42-13-5-0Senate: FIN DPA 6-1-0-0 | Third Read 26-3-1-0 |
HB2398: watercraft; insurance requirements; penalties
Sponsor: Representative Biasiucci, LD 30
Senate Engrossed
Overview
Establishes insurance requirements for watercraft owners and boat livery owners. Requires a watercraft owner, who provides for rent in this state, or a boat livery owner to maintain a commercial boat liability policy.
History
A boat livery owner must keep or cause to be kept a record of the name and address of the person or persons hiring any watercraft designed or permitted by him to be operated as a watercraft, the identification number thereof, the departure date and time and the expected and actual time of return. Such record must be preserved for at least three months.
Neither the owner of a boat livery nor his agent or employee must permit any watercraft to be operated from his premises unless it must have been provided, either by the owner or renter, with the required equipment.
The certificate of number for a watercraft less than 26 feet in length that is leased or rented to a person for noncommercial use of less than 24 hours may be retained on shore by the owner or his representative at the place from which the watercraft departs or returns to the possession of the owner or his representative. A watercraft which does not have the certificate of number on board must be identified while in use as may be prescribed by the regulations of the Arizona Game and Fish Commission (Commission) (A.R.S. § 5-371).
Provisions
1. Directs a watercraft owner who provides for rent in this state to maintain a commercial boat liability policy. (Sec. 1)
2. Asserts an owner's commercial boat or a boat livery owner's liability policy must provide primary boat liability insurance coverage as follows:
a. $25,000 because of bodily injury to or death or one person in any one accident;
b. subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident; and
c. $20,000 because of injury to or destruction of property of others in any one accident. (Sec. 1, 2)
3. Instructs a watercraft owner who provides a watercraft for rent to always maintain the amounts of the prescribed insurance policy for injuries to persons and for loss or damage to property by reason of the watercraft rental or operation. (Sec. 1)
4. Allows the Commission to require a watercraft owner or a boat livery owner, who is subject to insurance responsibility requirements, to certify the existence of insurance responsibility in the form and at the time the Commission deems necessary. (Sec. 1, 2)
5. Permits the Commission to forward the certification to the named insurer to determine if the certification is correct. (Sec. 1, 2)
6. Stipulates that civil liability does not accrue to the insurer or any of its employees for reports made to the Commission if the reports are made in good faith based on the most recent information available to the insurer. (Sec. 1, 2)
7. Makes a watercraft owner, who rents a watercraft, or a boat livery owner, who causes a watercraft to be operated without the insurance responsibility, guilty of a class 3 misdemeanor and a class 1 misdemeanor if the watercraft is involved in an accident in this state. (Sec. 1, 2)
8. Tasks a boat livery owner with maintaining a commercial boat liability policy for persons who hire a watercraft for use on a waterway in this state. (Sec. 2)
9. Applies the liability coverage to be in effect at any time that the watercraft is operated on a waterway in this state. (Sec. 1)
10. Requires a boat livery owner to always maintain the amounts of the prescribed insurance policy. (Sec. 2)
11. Makes technical changes. (Sec. 1)
Senate Amendments
1. Expands the requirement to maintain a commercial boat liability policy to include a watercraft owner of a charter.
2. Allows the watercraft owner to maintain a personal lines boat policy with a specified commercial charter boat liability endorsement instead of commercial boat liability policy.
3. Includes personal lines boat policy with a specified commercial or charter boat liability coverage endorsement into the liability policy requirements.
4. Exempts, from liability policy or personal lines boat policy requirements, a watercraft owner who provides a watercraft for rent or charter in this state fewer than four times in a calendar year.
5. Clarifies that an insurer in this state is not required to offer, issue, renew or provide a commercial boat liability policy.
6. Allows an insurer to voluntarily offer or provide a commercial boat liability policy prescribed by the insurer's underwriting standards and risk selection.
7. Requires a peer-to-peer watercraft sharing program to maintain a primary commercial boat liability insurance policy that is not less than:
a. $25,000 because of bodily injury or death of one person in any one accident;
b. $50,000, subject to the limit for one person, because of bodily injury to or death of two or more persons in any one accident;
c. $20,000 because of injury to or destruction of property of others in any one accident.
8. Mandates a peer-to-peer watercraft sharing program (program) to ensure that the commercial liability insurance policy recognizes the insured watercraft is made available and used through the program and does not exclude the use of a shared watercraft by a shared watercraft operator.
9. Tasks the program with providing proof of the insurance to the operator of the watercraft before the watercraft sharing start time.
10. Stipulates that if an accident occurs during the sharing period, the shared watercraft operator and the program must provide proof of the insurance to all parties involved in the accident, at the time of the accident.
11. Requires the program to collect and verify records relating to the use of a shared watercraft, including times used, fees paid by the watercraft operator and monies received by the watercraft owner.
12. Asserts that the program must keep these records for at least six years after the termination of the transaction.
13. Instructs the program and any insurer that provides the insurance coverage, during an insurance claim investigation, to cooperate with all the parties involved.
14. Requires that during an insurance investigation, the program must provide to any party involved, the required records relating to the use of a shared watercraft.
15. Directs any insurer that provides coverage to provide a clear description of any exclusions, limits and afforded coverage provided by the policy.
16. Allows a program to recover the program's insurance costs that are incurred by satisfying the program's obligations from a shared watercraft owner or operator.
17. Prohibits limitations on:
a. the liability of the program for any act or omission of the program resulting in injury to any person as a result of the use of a shared watercraft through a shared watercraft transaction;
b. the ability of the program, by contract, to seek indemnification from the shared watercraft owner or operator for economic loss sustained by the program and that results from a breach of the terms and conditions of the shared watercraft transaction.
18. Allows an insurance policy to be obtained from an insurer authorized to transact insurance in this state, a domestic surplus lines insurer authorized to issue insurance coverage in this state or a surplus lines insurer.
19. Defines pertinent terms.
20. Makes technical and conforming changes.
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24. Initials LM/IC HB 2398
25. 4/6/2026 Page 0 Senate Engrossed
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