28-8275 Insurance coverage disclosure; civil penalty

28-8275. Insurance coverage disclosure; civil penalty

A. A person who rents an aircraft to another person shall both:

1. Deliver to the renter a written notice stating the nature and extent of insurance coverage provided, if any, for the renter against either:

(a) Loss of or damage to the hull of the aircraft.

(b) Liability arising out of the ownership, maintenance or use of the aircraft.

2. Retain copies of the notice for two years from the last date the renter has rented an aircraft from the person.

B. The notice provided in subsection A constitutes a material part of the rental agreement. The renter shall give written acknowledgment of receipt of this notice.

C. Delivery of the notice covers all future rentals of the same aircraft to the same person, unless the insurance coverage provided in the original notice has been reduced or eliminated.

D. Failure to deliver the notice pursuant to subsection A shall result in a civil penalty of not more than one thousand dollars.