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Can I require customers to sign liability waivers in Rhode Island? What are the requirements?

Yes, you can require customers to sign liability waivers in Rhode Island, but the requirements may vary depending on the type of waiver. For guaranteed asset-protection (GAP) waivers, which are waivers offered, sold, or provided to borrowers in Rhode Island, the requirements are set forth in RIGL 19-32-3 and RIGL 19-32-4. According to these statutes, the cost of a GAP waiver must be separately stated and is not considered a finance charge or interest. Additionally, a retail seller must insure its GAP waiver obligations under a contractual liability or other insurance policy issued by an insurer. A creditor, other than a retail seller, may insure its GAP waiver obligations under a contractual liability policy or other such policy issued by an insurer. Any such insurance policy may be directly obtained by a creditor, retail seller, or may be procured by an administrator to cover a creditor’s or retail seller’s obligations. Contractual liability or other insurance policies insuring GAP waivers must state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the GAP waivers issued by the creditor and purchased or held by the borrower. Coverage under a contractual liability or other insurance policy insuring a GAP waiver must also cover any subsequent assignee upon the assignment, sale, or transfer of the finance agreement. Coverage under a contractual liability or other insurance policy insuring a GAP waiver must remain in effect unless cancelled or terminated in compliance with title 27. The cancellation or termination of a contractual liability or other insurance policy must not reduce the insurer’s responsibility for GAP waivers issued by the creditor prior to the date of cancellation or termination and for which premium has been received by the insurer [1.2].

It is important to note that these requirements specifically apply to GAP waivers and may not necessarily apply to other types of liability waivers. Therefore, it is recommended that you consult with a legal professional to ensure that any liability waivers you require comply with all applicable laws and regulations in Rhode Island [1.1].

Source(s):
Jurisdiction

Rhode Island