§ 251-a. Notice of insurance coverage in aircraft rental agreements.
In addition to the requirements prescribed in section two hundred
fifty-one of this article relating to liability of an owner of an
aircraft:
1. Every person who, in the ordinary course of such person's business,
rents an aircraft to another person, shall deliver to such renter a
written notice stating the nature and extent of insurance coverage
provided, if any, for the renter against loss of or damage to the hull
of the aircraft, or against liability arising out of the ownership,
maintenance or use of the aircraft; such notice shall contain the name
of the person giving the notice, and shall be in substantially the
following form:
NOTICE OF INSURANCE COVERAGE
As a renter of aircraft, you are hereby notified that: (1) You (are) (are not) (strike phrase not applicable) insured under a
policy or policies of insurance provided by the undersigned and
providing liability coverage to renters of aircraft. If coverage is
provided, it is in the following amount or amounts:
$________________________.
(a) The above insurance is subject to a deductible amount of
$____________________.
(2) You (are) (are not) (strike phrase not applicable) insured for
hull damage to the aircraft. If hull insurance is provided, it is in the
amount of $________________.
(a) The above insurance is subject to a
deductible amount of $________________.
(3) Although insurance may be provided for liability and/or hull
coverage, the undersigned's insurance carrier has full rights to
subrogate against you for any payments it may be required to make on
account of any damage or loss arising out of your operation of the
aircraft. It is suggested that you carry insurance to protect you to
partially or fully cover this possibility.
_____________________________
Signature of Person or Officer
of Company Renting Aircraft)
Dated_________________, 19_____
(Month) (Day)
(Year)
2. The notice delivered pursuant to subdivision one of this section
shall constitute a material part of any rental agreement, and each
renter shall give written acknowledgement of receipt of such notice.
3. Delivery of the above notice to a renter shall cover all future
rentals, unless the insurance coverage set forth in the original notice
has been reduced or eliminated.
4. Copies of the notices provided for in subdivision one of this
section shall be maintained by the owner for a period of three years
from the last date that the renter has rented an aircraft from such
owner.
5. Whoever fails to deliver the notice in accordance with the
provisions of subdivision one of this section shall be fined not less
than one hundred dollars nor more than five hundred dollars for a first
offense, and not less than five hundred dollars nor more than one
thousand dollars for a second or subsequent offense.
