Only University employees can drive vehicles rented by the University for official University business. Driving a rental vehicle on behalf of a University department must be within the scope of work the employee was hired to do for that department. University employees are defined as individuals working for the University for wages and salary. Employees must receive a University payroll check.

Students who are employed by the University and receive a salary, or a payroll check may drive vehicles rented by the University while performing duties within the scope of the job for which they are being paid. Students, such as those on scholarship or fellowship, who are not employed by the University, are not allowed to drive vehicles rented by the University.

Visiting Lecturers, Scholars, Scientists and Professors with or without appointments, as well as, Adjunct and Emeritus Professors may drive vehicles rented by the University only if they are currently employed by the University and receive a University payroll check.

Volunteers, persons working for the University, but not receiving a payroll check, may not drive vehicles rented by the University.

Traveling employees should seek the most economical rental vehicle available at their destinations - considering type and size of vehicle needed, length of rental, etc. - from among the companies on contract.

The car rental companies under contract will offer promotional or special rates whenever these are lower than the contracted rates. Higher rates are allowable only in published extra-charge locations. The rates quoted on the State of North Carolina, Division of Purchase and Contract Vehicle Rental Contract cannot be raised for the first six (6) months of our contracts. Thereafter a minimum of 30 days notice is required for rate changes.

The method of billing to NCSU will be direct payment by the employee with reimbursement by the agency (identification as a State employee is required).

To reduce the personal exposure University employees are subjected to when renting a vehicle for official University Business, the following procedures are strongly recommended:

• Always make sure to get approval from your department head prior to renting a vehicle for official University business.
• Always use the State's contract number and ask for the rate applicable to the State's contract whenever making a reservation and/or renting a vehicle for official University business. Departments using travel agencies to make their travel arrangements should make sure the travel agency has and uses this information when making reservations for official University business. If you request a rate lower than the contract rate you may void the State's contract and/or important insurance features that are in place to protect you.
• Always identify yourself as an employee of North Carolina State University and tell the rental car company representative you will be using the vehicle for official State business.
• Always use the University's American Express or Diners Club Corporate Card to pay for rental car services. Employees should avoid using their personal credit card to pay for these services whenever possible.

Comprehensive and collision insurance coverage is renewed, effective July 1 each year for vehicles rented for less than 30 days by University employees to conduct official University business. There is no charge to University departments for this blanket coverage. Under the renewal coverage with Travelers Insurance Companies, vehicles are automatically covered for a limit of $25,000 per vehicle with less than 10,000 pounds gross vehicle weight (gvw) and $40,000 per vehicle which exceed 10,000 pounds gvw with no annual aggregate limits. Coverage is provided in the United States, its possessions, and Canada. There is no coverage in other foreign countries. Please refer to Insurance and Risk Management's website section titled Insurance/Policies/Motor Vehicle Insurance) B. 15. for more information regarding the coverage territory.

If the rental vehicle is valued at more than $25,000 for those vehicles with less than 10,000 pounds gvw, or $40,000 for those vehicles which exceed 10,000 pounds gvw, or the employee plans to rent the vehicle for 30 days or more, the employee must contact Insurance and Risk Management at extension 5-6135 to have the vehicle properly insured. In some cases, there will be a premium charge to the department for this coverage. If insurance is not purchased, the department authorizing the rental or lease of the vehicle will be responsible for the repair or replacement of the vehicle at the time of loss.

In instances where the rental car will be used for University business as well as personal activities, the individual renter may want to purchase additional coverage because major rental car companies have dramatically increased the amount for which the renter is responsible. Please remember, however, State policy does not allow reimbursement to our employees for the purchase of the "Collision Damage Waiver" that is offered as an optional feature to renters. Any employee selecting this coverage must pay for it from personal funds.

There is one exception to the rule on the purchase of the rental car insurance. Because The Travelers' insurance coverage does not extend to most foreign countries, the State Budget Office does allow reimbursement on the cost of rental car insurance when employees are conducting official university business in the foreign countries not covered by the policy.

The State assumes no liability for loss of use by the car rental companies, or for their administrative cost to process loss claims.

The State's liability for loss or physical damage to a vehicle is limited to the maximum limitation offered in the rental car company's contract, or the actual cash value of the vehicle, whichever is less.

The rental car companies will adhere to their limits only if the vehicle is rented in compliance with their contract using the corporate rates and the proper account number. In all cases, if the rental car contract is violated, the University department or employee may be responsible for the full value of damage to the vehicle.

The State will be charged for vehicle damage only when the State is the liable party whether or not there is other valid and collectible insurance. In the event of damage to a vehicle for which the State is liable, the State's insurance carrier (Travelers) will be notified promptly by the rental car company and given an opportunity to view the damage prior to repairs being made.

In accordance with the State's instructions on the rental car contract RFP, the "prohibited use" provisions of these rental agreements shall be modified and construed to comply with Section 5. of the Collision Damage Waiver Model Act adopted 6/16/88 by the National Association of Insurance Commissions. These are:

1. No rental company shall, in rental agreements of thirty (30) continuous days or less, hold any authorized driver liable for any damage, except where:

• The damage is caused intentionally by an authorized driver or as a result of his willful or and wanton misconduct.
• The damage arises out of the authorized driver's operation of the vehicle while illegally intoxicated or under the influence of any illegal drug as defined or determined under the law of the state where the damage occurred.
• The damage is caused while the authorized driver is engaged in any speed contest.

• The rental transaction is based on information supplied by the renter with the intent to defraud the rental company.
• The damage arises out of the use of the vehicle while committing or otherwise engaged in a criminal act in which the automobile usage is substantially related to the nature of the criminal activity.

• The damage arises out of the use of the vehicle to carry persons or property for hire.
• The damage arises out of the use of the vehicle outside of the United States or Canada unless such use is specifically authorized by the rental agreement.

2. No action for damage may be brought by a rental company against a renter who is a resident of the United States except in the state and country of the renter's primary residence.
3. No security or deposit for damage in any form may be required or requested by the rental company during the rental period or pending resolution of any dispute.

Drafting Note: It is intended that Subsection C include, but not be limited, to the practice of requiring security in the form of credit card lines of credit. Security may be allowed but only in such amounts to reasonably insure payment on the account or security for return of the automobile.

4. No waiver may be offered to provide coverage for any of the exceptions (or deductible, if applicable) listed above.