Networks (Commercial Ride Share)

Transcription

1 UPCI Model Legislation/ Regulation Insurance Issues for Transportation Networks (Commercial Ride Share) (Stat/Reg #): Transportation Networks (Commercial Ride Share) Insurance Requirements A. Definitions ( Based on CO SB ) a. "Personal Vehicle" means a vehicle that is used by a Transportation Network Company Driver in connection with providing services for a Transportation Network Company. b. "Transportation Network Company" means a corporation, partnership, sole proprietorship, or other entity, operating in [STATE] that uses a digital network or other means to connect riders to Transportation Network Company Drivers for the purpose of providing transportation for compensation. c. "Transportation Network Company Driver" or "driver" means an individual who uses his or her personal vehicle to provide services for riders matched through a Transportation Network Company. A Transportation Network Company Driver need not be an employee of a Transportation Network Company. d. "Transportation Network Company Rider" or "rider" means an individual who uses a Transportation Network company to connect with a driver to obtain services in the Transportation Network Driver's personal vehicle from an agreed-upon point of departure to an agreed-upon destination, or anyone for whom another individual uses a Transportation Network Company to obtain services in the Transportation Network Drivers personal vehicle. e. "Transportation Network Company Services" or "services" means the period of time a Transportation Network Driver is available to provide transportation to a rider with whom the driver is matched through a Transportation Network Company. Transportation Network Company Services does not include transportation provided using a Taxi, Limousine (cite definition in state law) or other commercially registered vehicle and commercially licensed driver. B. Financial Responsibility of Transportation Network Companies ( Based on CO SB ) a. On or before (date) and thereafter, a Transportation Network Company Driver or Transportation Network Company on the drivers behalf, shall maintain a primary automobile insurance policy that: i. Recognizes that the driver is a Transportation Network Company Driver and explicitly covers the drivers provision of Transportation Network Company

2 Services while the driver is available to provide Transportation Network Services; ii. Meets at least the minimum coverage requirements per ( Drafting note: reference by statute all coverage s mandated by state law, including BI and PD Liability, UM/ UIM, Med Pay, NF and/or PIP). iii. Is one of the following: 1. A commercial automobile insurance policy that provides full-time coverage for Transportation Network Services or livery services; 2. An insurance rider to, or an endorsement of, the Transportation Network Driver s personal automobile insurance required by (cite state financial responsibility law). Such a rider or endorsement may be combined with an excess policy provided by the Transportation Network Company such that the combined limits of the policies met those required in (cite state law) ; 3. A corporate automobile liability insurance policy purchased by the Transportation Network Company that provides primary coverage for the period of time when a Transportation Network Company Driver is available to provide Transportation Network Services including anytime a Transportation Network Company rider occupies the Transportation Network Company Driver s personal vehicle. Such policy shall also provide first party coverage to the owner of the Personal Vehicle at the same limits, deductibles and coverage options purchased by the owner on his or her personal automobile policy. b. If a Transportation Network Company purchases an insurance policy per section B (a) (iii) (3), it shall provide documentation to (entity regulating TNC) evidencing that the Transportation Network Company has secured the policy. c. An insurance policy required by this section (section B) may be placed with an insurer licensed under (cite statue) or with a surplus lines insurer eligible under (cite statute). d. If the responsibility is placed on a Transportation Network Driver to purchase insurance under this section, the Transportation Network Company shall; i. Verify that the driver has purchased an insurance policy under this section before allowing the prospective driver to provide services and verify that the coverage remains in force to be eligible to provide services.

3 e. Notwithstanding any provision in the owner's insurance policy or any other provision of this code: i. The insurer providing primary or excess coverage to the owner of a private passenger motor vehicle may exclude any and all coverage and the duty to defend afforded under the owner's insurance policy for any loss or injury that occurs while an insured vehicle is available to provide Transportation Network Services. This right to exclude coverage and the duty to indemnify and defend applies to all coverage provided by the registered owner s insurer including, but not limited to; 1. Liability and physical damage coverage 2. Personal injury protection coverage as defined in [cite]; 3. Uninsured and Underinsured motorist coverage as defined in [cite]; 4. Medical payments coverage for persons using or occupying the registered vehicle; 5. Comprehensive physical damage coverage; and 6. Collision physical damage coverage. ii. A primary or excess insurer of the vehicle owner may notify an insured that the insurer has no duty to defend or indemnify any person or organization for liability for any loss that occurs while a Personal Vehicle is made available to provide Transportation Network Services. Drafting note: Specific statutory protection of the livery exclusion is strongly recommended to provide clear guidance for courts interpreting transportation network statutes. However there may be political or legal considerations that dictate that such language not be pursued. For those cases, section d may be omitted, or substituted with the following: Nothing in this section requires a personal automobile insurance policy to provide any coverage for a Personal Vehicle or driver while providing Transportation Network Services. C. Operational Requirements a. For each Personal Vehicle that participates in a Transportation Network, the Transportation Network Company shall; i. Prior to the first use of a Personal Vehicle to provide Transportation Network Company Services, or change in insurance by the Transportation Network Company, the Transportation Network Company shall provide to the Personal Vehicle s registered owner and any person operating the Personal Vehicle to provide Transportation Network Company Services a disclosure that contains:

4 1. Full and clear description of the coverage and coverage limits provided under the Transportation Network Company s primary insurance policy along with the name, address, and phone number of the insurer; 2. Notice that the Personal Vehicle s registered owner s private passenger auto policy may exclude all coverage for injuries to the driver and to others and may exclude the duty to defend or indemnify any person or organization for liability for any loss or injury that occurs while the vehicle is made, including damage to the driver s vehicle or to the property of others. 3. Notice that the Personal Vehicle s registered owners private passenger auto policy may exclude coverage for damage to the vehicle, medical payments uninsured and/or underinsured motorist coverage and other first party claims. ii. The disclosures referenced in this section must be placed prominently in the prospective drivers terms of service, and the driver must acknowledge the terms of service electronically or by signature. iii. Require, prior to the prior to the first use of a Personal Vehicle in Transportation Network Company Services, or upon the termination of the Personal Vehicles participation in the Transportation Network, the Transportation Network Company shall; 1. Provide direct notice to the Personal Vehicle Owners personal auto insurer if the Transportation Network Company is providing primary insurance coverage per section B.(a)(iii)(3) above. 2. Provide, upon request of the Personal Vehicle owners personal auto insurer, all data and records associated with the Personal Vehicle while available to provide Transportation Network Company Services. b. If a Transportation Network Company is providing primary insurance coverage per section B.(a)(iii)(3) above; i. A Transportation Network Company shall assume liability, including the costs of defense and indemnification, for a claim in which a dispute exists as to whether the loss or injury giving rise to the claim occurred while an insured vehicle is available to provide Transportation Network Services. The Transportation Network Company must notify the registered owner and the registered owners insurer of any such dispute within twenty five (25) business days of receiving notice of the accident that gives rise to such claim.

5 ii. If a private passenger motor vehicle's registered owner or its insurer is named as a defendant in a civil action for any loss or injury that occurs while an insured vehicle is available to provide Transportation Network Services, the Transportation Network Company shall have the duty to defend and indemnify the vehicle's registered owner and its insurer.