(a) A dealer shall maintain in safe operating condition all snowmobiles, rented, leased or furnished by him or her. The dealer or his or her agents or employees shall explain the operation of the snowmobile being rented, leased or furnished, and if such dealer or his or her agent or employee believes that the person to whom the snowmobile is to be rented, leased or furnished is not competent to operate such snowmobile with competency to himself or herself and to the safety of others, he or she shall refuse to rent, lease or furnish the same.
(b) Any dealer renting, leasing or furnishing any snowmobile shall carry a policy of liability insurance subject to limits, exclusive of interests and costs, with respect to such snowmobiles, as follows: two hundred thousand dollars ($200,000) because of bodily injury to or death of one person in any one accident and subject to said limit for one person, four hundred thousand dollars ($400,000) because of bodily injury to or death of two or more persons in any one accident, and one hundred thousand dollars ($l00,000) because of injury to or destruction of property of others in any one accident, or, in the alternative, demand and be shown proof that the person renting, leasing or being furnished a snowmobile carries a liability policy of at least the type and coverage as specified above.