To enact section 3905.427 of the Revised Code to enact the Rental Home Marketplace Guarantees Act.
Summary
HB757 would create a new section of Ohio law, the “Rental Home Marketplace Guarantees Act,” to regulate certain guarantee products offered by online rental home marketplaces. The bill defines a rental home marketplace as an online platform that connects users to share or rent property, and it defines a rental home marketplace guarantee as a contract tied to that platform that reimburses a property owner for renter-caused damages under the platform’s terms of service. The measure requires providers to make guarantee terms publicly available on their websites and to back all guarantees with a reimbursement insurance policy issued by an insurer authorized or eligible to do business in Ohio.
The bill also specifies that these guarantees are not themselves insurance contracts and that the providers offering them are not insurance companies, while still requiring the underlying reimbursement insurance policy to comply with Ohio insurance rules on termination and non-renewal. It further requires clear disclosures stating that the guarantee is not insurance and that, if the provider fails to pay within 180 days after proof of loss, the platform user may pursue a claim directly against the insurer subject to the policy terms. Finally, the bill treats the sale or issuance of a rental home marketplace guarantee as a consumer transaction under Ohio consumer protection law, making the provider the supplier and the contract holder the consumer for those purposes.
Impact
If enacted, HB757 would add a new regulatory framework to Ohio’s insurance and consumer protection statutes by carving out and defining rental home marketplace guarantees, setting disclosure requirements, and tying those products to reimbursement insurance coverage. It would affect online rental platforms, affiliated guarantee providers, insurers authorized to operate in Ohio, and property owners who use these marketplace services. The bill would also bring these transactions within the state’s consumer transaction laws, potentially giving contract holders access to consumer protection remedies.
Sentiment
Based on the available record, the bill appears to be an introductory regulatory measure rather than a controversial or heavily debated proposal. There are no committee transcripts or recorded votes in the provided materials, and the bill was still at the introduced stage. The overall posture suggests a technical effort to clarify how rental marketplace guarantee products are treated under Ohio law and to ensure consumer and insurer protections are in place.
Contention
The main policy issue embedded in the bill is whether rental home marketplace guarantees should be treated as insurance or as a separate consumer product backed by insurance. The bill resolves that question by stating the guarantees are not insurance, while still requiring reimbursement insurance and allowing direct claims against the insurer if the provider defaults. Potential points of contention for stakeholders could include the compliance burden on marketplace platforms, the scope of insurer liability, and whether the consumer protection treatment is sufficient or too expansive, but no specific objections or supporters are documented in the provided materials.