NATIONAL CONFERENCE OF INSURANCE LEGISLATORS (NCOIL)

Transcription

1 NATIONAL CONFERENCE OF INSURANCE LEGISLATORS (NCOIL) Proposed Model Act to Regulate Insurance Requirements for Transportation Network Companies and Transportation Network Drivers To be considered by the NCOIL Property-Casualty Insurance Committee on March 1, Sponsored by Rep. Michael Stinziano (OH) The regulation of insurance related to transportation network company services and the provision of transportation network company services is a matter of general statewide interest that requires statewide regulation. This Act constitutes a comprehensive plan with respect to all aspects of insurance for transportation network companies and the provision of transportation network company services, and it is the intent of the general assembly to preempt any local ordinance, resolution, or other law adopted to impose, require, or otherwise regulate insurance requirements for transportation network companies and the provision of transportation network company services. Section 1. Definitions A. "Owner" means the person whose name appears on the personal vehicle's registration. B. Personal vehicle" means a vehicle that is used by a transportation network company driver in connection with providing transportation network company services. C. Rider" means an individual who, through the use of a transportation network company, is connected with a transportation network company driver to obtain transportation network company services in a personal vehicle. D. Transportation network company" includes a corporation, partnership, association, limited liability company, proprietorship, or other entity operating in [insert state] that uses an online application or platform, digital network, or other means to connect riders to transportation network company drivers for the purpose of providing transportation for compensation. E. Transportation network company driver" means an individual who uses a personal vehicle to provide transportation network company services. A transportation network company driver is not required to be an employee of a transportation network company. F. 1. Transportation network company services" mean services provided by a transportation network company driver in connection with the transportation network company and include both of the following: a. the period of time during which the transportation network company driver is available to provide transportation network company services by logging on to the transportation network company's online application or platform, digital network, or other system, including the time period before the transportation network company driver has been matched with a rider and after the driver has been matched with a rider

2 b. the time period during which a rider and any other passengers are occupying the transportation network company driver's personal vehicle 2. "Transportation network company services" end when the transportation network company driver logs off the online application or platform, digital network, or other system or when the rider and any other passengers completely exit the personal vehicle, whichever is later. 3. Transportation network company services" do not include services provided by any of the following: a. a taxicab, as defined in [insert statutory provision] b. a chauffeured limousine, as defined in [insert statutory provision] c. any commercially registered vehicle and commercially licensed driver d. a ridesharing arrangement when any fee charged each individual transported in such an arrangement is in such an amount as to recover only the individual's share of the costs of operating the vehicle for that purpose G. Transportation network insurance means an insurance policy that specifically covers a driver s use of a vehicle in connection with a transportation network company s onlineenabled application or platform. Section 2. Insurance Coverage Requirements A. A transportation network company shall disclose in writing to participating drivers, as part of its agreement with those drivers, the insurance coverage and limits of liability that the transportation network company provides while the driver uses a vehicle in connection with a transportation network company s online-enabled application or platform, and shall advise a participating driver in writing that the driver s personal automobile insurance policy may not provide any required or optional coverage because the driver uses a vehicle in connection with a transportation network company s online-enabled application or platform. B. The following requirements shall apply to transportation network company insurance during the period of time that transportation network company services are being provided: 1. transportation network company insurance shall provide primary liability coverage and in the amount of [$XXXX] for death, bodily injury, and property damage 2. transportation network company insurance coverage provided under this subsection shall also provide: a. uninsured motorist coverage and underinsured motorist coverage in the amount of [$XXXX] 2

3 b. personal injury protection under [insert statutory citation here] c. collision physical damage coverage and comprehensive physical damage coverage if the participating driver carries those coverages on their personal auto policy unless that insurer is providing transportation network company insurance to the driver C. The requirements for the coverage required by this section may be satisfied by any of the following: 1. transportation network company insurance acquired and maintained by a participating driver 2. transportation network company insurance acquired and maintained by a transportation network s company 3. both (1) and (2) above D. If a participating driver maintains transportation network company insurance pursuant to subsection (C), paragraphs (1) or (3), then the transportation network company shall verify that the policy is maintained by the driver and is specifically written to cover the driver s use of a vehicle in connection with a transportation network company s online-enabled application or platform. E. The insurer providing transportation network company insurance under this section shall have the duty to defend and indemnify the insured. F. Coverage under a transportation network company insurance policy shall not be dependent on a personal automobile insurance policy first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim. G. In every instance where transportation network company insurance maintained by a participating driver to fulfill the insurance obligations of this section has lapsed or ceased to exist, the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim. H. The policies described in this section shall attach and provide coverage regardless of whether a transportation network company driver has agreed to waive coverage or has entered into an agreement with the transportation network company to hold harmless or indemnify the transportation network company. I. Each policy required by this section must be issued by an insurance company that is admitted to do business in [insert state] or by an eligible surplus lines company or risk retention group, and has a credit rating of no less than A- from A.M. Best or A from Demotech. 3

4 Section 3. Private Passenger Automobile Insurance and Transportation Network Company Insurance Coverage A. Nothing in this Act shall be construed to require a private passenger automobile insurance policy to provide primary or excess coverage during the period of time that transportation network company services are being provided B. During the period of time that transportation network company services are being provided, all of the following shall apply: 1. The participating driver s or the vehicle owner s personal automobile insurance policy shall not provide any coverage to the participating driver, vehicle owner, or any third party, unless the policy expressly provides for that coverage during the period of time specified or the policy contains an amendment or endorsement to provide that coverage. 2. The participating driver s or the vehicle owner s personal automobile insurance policy shall not have the duty to defend or indemnify for the driver s activities in connection with the transportation network company, unless the policy expressly provides otherwise for the period of time specified or the policy contains an amendment or endorsement to provide that coverage. C. Notwithstanding any other law, a personal automobile insurer may, at its discretion, offer an automobile liability insurance policy, or any amendment or endorsement to an existing policy that covers a private passenger vehicle, station wagon type vehicle, sport utility vehicle, or similar type of vehicle with a passenger capacity of eight persons or less, including the driver, while used in connection with a transportation network company s online-enabled application or platform only if the policy expressly provides for the coverage during all or a specified portion of the period of time that transportation network company services are being provided, or the policy contains an amendment or an endorsement to provide that coverage. D. In a claims coverage investigation, a transportation network company or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a participating driver and the precise times that the participating driver logged on and off the transportation network company s online-enabled application or platform. E. Notwithstanding [insert citation] of the Insurance Code, or any other law affecting whether one or more policies of insurance that may apply with respect to an occurrence is primary or excess, this Act determines the obligations under insurance policies insured to transportation network companies and, if applicable, drivers using a vehicle in connection with a transportation network company s online-enabled application or platform. 4

5 Section 4. Proof of Insurance A participating driver of a transportation network company shall carry proof of transportation network company insurance coverage with him or her at all times during his or her use of a vehicle in connection with a transportation network company s online-enabled application or platform. In the event of an accident, a participating driver shall provide this insurance coverage information to any other party involved in the accident, and to a police officer, upon request. Section 5. Data Sharing A transportation network company shall not disclose to a third party the personally identifiable information of users of the transportation network company s mobile applications unless: A. the transportation network company obtains the user s consent to disclose personally identifiable information B. the disclosure is required to comply with a legal obligation, or C. the disclosure is required to protect or defend the terms of use of the services or to investigate violations of the terms of use Section 6. Required Notices and Disclosures A. For each personal vehicle used by a transportation network company, the company shall provide a written disclosure to the personal vehicle's owner and to any transportation network company driver before the personal vehicle is first used to provide transportation network company services and before any change in insurance by the company. The disclosure shall contain all of the following: 1. a full and clear description of the insurance coverage and limits provided under the company's primary insurance policy along with the name, address, and telephone number of the insurer 2. notice that the private passenger automobile policy of the owner or any driver may exclude all coverage for any loss or injury to the driver and to others, including property damage, and may exclude the duty to defend or indemnify any person or organization for liability for any loss or injury that occurs during the time transportation network company services are being provided 3. notice that the private passenger automobile policy of the owner or the driver may exclude coverage for damage to the vehicle, medical payments, uninsured and underinsured motorist damage, motor vehicle property damage, and other claims B. A transportation network company shall prominently place the disclosures required by subsection A of this section in the prospective transportation network company driver's written terms of service and obtain the driver's acknowledgement of the terms of service by electronic or written signature. 5

6 C. If a transportation network company is providing primary insurance coverage under Section 2 of this Act, it shall provide direct notice of that fact to the transportation network company driver, owner, and owner's personal lines automobile insurer before the first use of a personal vehicle for transportation network company services, or upon the termination of the transportation network company driver's participation in the transportation network company. D. Upon request of the owner's personal automobile insurer, a transportation network company shall provide all data and records associated with the personal vehicle while the vehicle is available to provide transportation network company services. E. If a transportation network company is providing primary insurance coverage as defined in Section 2 both of the following apply: 1. The 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 transportation network company services were being provided. The company must notify the owner and the owner's insurer of any such dispute within twenty-five business days after receiving notice of the accident giving rise to that claim. 2. If a personal vehicle's owner or the owner's insurer is named as a defendant in a civil action for any loss or injury that occurs while transportation network company services were being provided, the company shall have the duty to defend and indemnify the personal vehicle's owner, transportation network company driver, and the owner's insurer. The company and its insurer shall cooperate with the insurer of the personal vehicle's owner or transportation network company driver. F. A transportation network company shall maintain a record of all personal vehicles used to provide transportation network company services that includes the following: 1. the name, address, driver's license number, and telephone number of each transportation network company driver 2. the license plate number, make, model, year, and color of each transportation network company driver's personal vehicle 3. the number of hours and miles that each transportation network company driver is providing transportation network company services G. The transportation network company shall maintain an electronic record of each transportation network company service provided by a transportation network company driver. The record shall include all of the following information: 6

7 1. the license plate number of the personal vehicle used 2. the name of the transportation network company driver 3. the name of the rider 4. the date the transportation network company service was provided 5. the time the transportation network company driver was matched with the rider 6. the times the transportation network company service began and ended 7. the number of miles of the transportation network company service 8. the final address of the transportation network company service 9. the total compensation paid, if any H. The transportation network company shall maintain each record required under subsections F and G of this section for a period of three years. Section 7. Violations A. Failure to maintain an automobile liability insurance policy in violation of Section 2 constitutes a violation by both the transportation network company driver and the transportation network company. B. Whoever violates Section 3 is guilty of a misdemeanor of the first degree. K:/NCOIL/2015 Docs/ doc 7