Ride-Sharing Arrangements Through
Transportation Network Companies (December 31, 2014)
INTRODUCTION
Ride-sharing is a term generally referring to peer-to-peer transportation network services
that typically arrange rides between independent private passenger vehicle owners and
passengers via an online-enabled application or digital network.
Three technological elements are currently employed in such transportation network
services:
•
•
•
Smart phones enable passengers to request a ride
GPS navigation that permits a match between passengers and drivers
Social networks encourage sharing of information and foster driver and passenger
accountability
All of these technological elements are coordinated through a ride-sharing service
provider, also commonly known as a Transportation Network Company (TNC), which
provides access to their digital platform through an online-enabled application or digital
network. This platform matches rides, accepts ride payments and provides riders and
drivers with the opportunity to evaluate one another. Examples of TNCs include Lyft,
Uber, and Sidecar. As of December 19, 2014, three major ride-sharing companies have a
footprint in over 130 U.S. cities through approximately 40 states and District of
Columbia.
How does it work?
Based on online information available from certain ride-sharing service providers, a
typical scenario involving these services may include the following events:
Via a mobile application, passengers in search of a ride may locate drivers in close
proximity by providing their location. A passenger may request a ride which may then be
accepted by a participating driver. Passengers also have the option of selecting the type of
vehicle within which they would prefer to travel. Methods of payment, including tip, may
be submitted through this mobile application, as compared to submitting traditional
methods of payments such as credit cards or cash, provided at the end of the ride. Some
ride-sharing providers characterize payment as a "donation" and state that such payment
is voluntary and at the passenger's discretion. A suggested "donation" may appear in the
application at the end of the ride. It appears that by using the term "donation", instead of
"fare" or "fee", such arrangements seek to avoid being classified as limousines and taxis,
which may be subject to more stringent regulatory guidelines and accompanying risks,
than a private passenger type classification.
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Additional Services Offered
In addition to the ride-sharing services described above, two of the major TNCS have
recently launched carpooling services. The general premise of these carpooling services
is to connect riders with other riders going to a similar destination or on a similar route
and "sharing" the ride and the costs. Some of the incentives reportedly being offered
include a lower rate with average savings ranging from 40% through 60% if a rider signs
up to share a ride regardless of whether the driver picks up additional riders 1. Potential
exposures arising from these carpooling services may include the additional risk of a
driver making multiple pickups during a trip.
INSURANCE COVERAGE
Transportation Network Companies
According to publically available information, the chart below generally outlines the
insurance coverages currently being provided to drivers by transportation network
companies during different phases of a network trip.
Phase
Current TNC Coverage
1. Driver is logged into the TNC
application but the driver has not yet
accepted a ride request. (A "match" has
not been made).
Contingent liability coverage if personal
auto coverage is declined/not available.
2. A "match" has been made but there is
no passenger occupying the vehicle.
Primary liability and UM/UIM coverage at
a higher limit. Contingent
comprehensive/collision coverage based on
certain circumstances.
3. A passenger is in the vehicle.
Same coverage as Phase 2.
Personal Auto Insurance
The ISO Personal Auto Policy (PAP) currently contains a public or livery conveyance
exclusion under Part A - Liability Coverage, as excerpted below:
A. We do not provide Liability Coverage for any "insured"…
5. For that "insured's" liability arising out of the ownership or operation of a vehicle
while it is being used as a public or livery conveyance. This Exclusion (A.5.) does
not apply to a share-the-expense car pool.
1
http://blog.uber.com/uberpool; https://www.lyft.com/#/line
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Part B – Medical Payments Coverage, Part C – Uninsured Motorists Coverage, Part D –
Coverage For Damage To Your Auto of the ISO PAP, and multistate Personal Auto
endorsement PP 03 11, Underinsured Motorists Coverage also contain similar exclusions.
Our staff research indicates that other personal auto policies in the insurance marketplace
may contain related exclusionary language for "carrying property or persons for a fee" or
similar exclusions.
Commercial Auto Insurance
The current ISO Commercial Auto program does not explicitly address public or livery
conveyance risks. However, there does not appear to be any general eligibility restrictions
that would preclude either the TNC or the drivers from purchasing a Business Auto
Coverage Form to cover their respective ridesharing exposures.
Nonetheless, the classification of such entities within the ISO Commercial Auto Program,
including for the purposes of rating evaluation and data collection, may be challenging.
Thus, consideration is underway to modify the ISO Commercial Auto Program to
expressly address TNC drivers, and possibly the TNC as well. ISO staff continues to
monitor this Commercial Auto market sector, evaluate related insurance exposures, and
determine what, if any, additional coverage options may be appropriate.
POTENTIAL EXPOSURE CONSIDERATIONS
Insurer Awareness
Ride-sharing arrangements through TNC's are rapidly finding its niche in the
transportation landscape by purportedly providing affordable alternatives to taxicabs,
public transit or driving alone. However this may raise questions regarding insurance
coverage where people may use their personal vehicles to pick up and drop off
passengers for a fee. According to staff research, some transportation network companies
reportedly advertise that they provide insurance protection for participating drivers and
their passengers. However, the insurance industry appears to be grappling with
considerations such as who will ultimately be responsible when a loss occurs, when that
responsibility commences and the extent of coverage provided by these TNCs. It is likely
that these issues may only be determined in the event of an accident involving a TNC
driver.
The ability to capture whether a policyholder/applicant is participating as a TNC driver
also poses a concern amongst insurers particularly from an underwriting and claims
perspective. Insurers may not be aware that an insured is participating in ride-sharing
activities until after an accident occurs and a claim is made. Additionally, insurance
agents and brokers could potentially face errors and omissions exposures under general or
professional liability coverage in the event an insured claims they were not properly
informed of potential exclusions or limitations related to an insured driving for a TNC.
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Our research indicates that in facing this challenge, some personal auto insurers
reportedly may be cancelling or non-renewing policyholders' policies upon learning of a
policyholder's participation as a TNC driver. Others may address ride-sharing within the
insurance application as reason for declination if an applicant participates in any ridesharing activity as a driver.
As part of the claims handling process, insurers may now need to evaluate if the insured
was acting as a TNC driver at the time of the accident. This may be difficult in some
instances, especially if a passenger is not occupying the vehicle. It will not only require
cooperation from the driver but may also require cooperation from the TNC. This is
particularly of impact if the loss occurred during Phase 2 where no passenger is
occupying the vehicle, which is currently reportedly covered under a TNC policy.
Determining whether a vehicle was being operated as part of a TNC service at the time of
the accident may require more claims investigation and add an additional administrative
and financial burden on auto insurers.
Other possible concerns include some insureds misrepresenting their involvement as a
TNC driver during their policy application, often due to concerns that the personal auto
insurer may cancel or non-renew their auto policy. In addition, as coverage may be
currently excluded under the insured's personal auto policy while that insured is
participating as a TNC driver, the insured may not inform their insurer during the claims
handling process that they were participating as a driver at the time in which a loss
occurred.
Operator awareness of coverage
There appears to be a potentially wide appeal for young adults, students, teachers, seniors
and the unemployed to earn supplemental income while carrying passengers using their
own personal cars. Many TNC drivers typically are not taxi or livery type drivers and, as
such, it may not occur to them to inform their auto insurers that they are participating as
TNC drivers. Others may be reluctant to share their ride-sharing activity with their
personal auto insurer due to concerns ranging from premium increase to cancellation or
non-renewal of insurance coverage. Some drivers may not consider the potential
insurance implications associated with participating as a TNC driver and may assume
they have appropriate insurance coverage for the entire time they are participating as a
TNC driver, whether it is through the TNC or their personal auto insurer.
A significant coverage concern for operators relating to ride-sharing arrangements may
be which insurance policy they may turn to for providing liability coverage when a
passenger is injured. As previously mentioned, some of the TNCs appear to currently
provide primary coverage for Phases 2 and 3 and contingent liability coverage for Phase
1. While it is submitted that the current public or livery conveyance exclusion contained
under the ISO Personal Auto Policy applies to all phases of participation as a driver with
a TNC, there may be also be differing opinions among operators, TNCs and insurers as to
whether or not Phase 1 should be covered under a Personal Auto Policy.
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Another potential coverage issue is whether personal injury protection (PIP) coverage
may apply to the TNC driver. There is a wide variation of PIP benefits available
depending on the jurisdiction. As required by statute or regulatory authority in any given
jurisdiction, PIP may be provided on a "follow-the-individual" basis, whereby an injured
person can collect under his or her own automobile policy while occupying any vehicle,
or on a "follow-the-car" basis whereby an injured person may collect PIP benefits under
the automobile policy covering the owner of the vehicle. Some jurisdictions may have
exemptions for taxi and livery vehicles with regard to PIP benefits, thereby raising
questions as to whether such jurisdictions will similarly exempt TNC exposures.
Raising awareness for the TNC driver regarding their available insurance coverages is
particularly important in an effort to ensure that the driver is appropriately covered during
all periods of participation, as well as ensuring that claims are handled properly.
Several state insurance departments have released advisory notices or bulletins
addressing ride-sharing arrangements through TNCs and indicating in part that
participation as a TNC driver may not be covered under a personal auto policy. Similarly,
legislation addressing TNC's in California and Colorado typically require certain
insurance information be disclosed within the TNCs’ contractual arrangements with their
drivers, so as to ensure that policyholders are properly informed of insurance implications
regarding ride-sharing. Educating the public of some of the exposures related to TNCs
appear to be localized in efforts, thereby potentially creating a need for personal auto
insurers to reach out to a wider audience of their policyholders by providing an
appropriate notice that explains that the exposures associated with participating as a TNC
driver may not be covered under their personal auto policy.
Other potential coverage concerns are for those personal auto policies in the marketplace
that may contain exclusionary language for carrying passengers for a fee. Under such
provisions, a TNC driver may assume that they are covered under their personal auto
policy for Phases 1 and 2 when there is no passenger occupying the vehicle.
The TNC operators who may be aware that their personal auto policy contains an
exclusion which addresses participation as a TNC driver, may opt to purchase a
commercial auto policy in order to ensure that they have adequate insurance coverage for
the entire time they are participating as a driver. However, related concerns include
commercial auto policies for taxi or livery type services are generally more expensive
than traditional personal auto policies, and there may be some overlap where commercial
auto policies may be providing coverage for periods of time which are already currently
covered under the TNC policy.
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Commercial Risk
Transporting individuals for compensation or driving for hire is generally perceived as a
commercial exposure. Although many TNC drivers use personal automobiles to perform
ride-sharing services, many regulators and those in the insurance industry, have been
generally addressing such ride-sharing arrangements through TNCs as a commercial
exposure. There is, however, also disagreement among TNCs, regulators and the
insurance industry in general regarding when the personal risk becomes a commercial
risk. While some have expressed a commercial risk may develop when the driver logs
into the TNC application, others have expressed that the commercial risk may occur
when the driver has accepted a ride request through the TNC application. It is some of
these differing opinions regarding when the risk changes from personal to commercial
which highlight the need for a clear distinction to be made between commercial and
personal auto risks so that there is a level of consistency across the industry on how this
type of exposure may be handled. This is particularly important to ensure that
participating drivers have adequate insurance coverage throughout all phases of
participation.
Commercial auto insurers are generally familiar with the exposures associated with taxi
or livery type services. By contrast, ride-sharing does not appear to fall neatly into these
traditional commercial exposures, in that it provides similar taxi and livery services, but
such services are being offered by drivers not currently subject to licensing and
regulatory requirements that may be applicable to a livery driver.
Moreover, the manner by which TNC drivers acquire fares and operate their vehicles
appears quite different from the traditional taxi or livery services, as discussed below.
Criteria for evaluating the risk
Because ride-sharing arrangements are a relatively new trend in the automobile insurance
marketplace, it currently does not have classification or rating in existing ISO auto
programs. Unless the participating driver already has a Commercial Auto Policy in which
they are rated under a taxi or livery type classification, there may be a need to develop
additional criteria to properly rate for the exposures associated with ride-sharing
arrangements.
As these types of services are generally more popular in urban areas, a participating
driver for a TNC may be operating in a higher rated territory than the garaging location
under which their personal auto policy is rated. For example, an individual may reside in
and be rated for a suburban area as their garaging location, but meanwhile the driver
travels to and operates in a nearby metropolitan location while participating as a TNC
driver.
Other potential rating considerations include the period of time an insured may be
operating a personal automobile as a TNC driver. For example, the period of time in
which the individual is acting as a TNC driver may have been time that the driver would
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have otherwise not been on the road. To evaluate the new risk as well as potentially
make a distinction between what may be considered part-time and full-time, the number
of hours the driver is logged into the TNC application may be another way to evaluate the
risk.
Mileage may also be used to evaluate the risk as the increase in miles driven by the
individual after they begin participating as a TNC driver represents an increase in
exposure to potential risks while they are on the road.
The potential change in the use of the vehicle is another factor in evaluating a risk. A
vehicle which may have otherwise been used to drive to and from work and have sat idle
during the day, may now not only be driven around during the day but may also carry a
variety of passengers which may have otherwise not been occupying the vehicle and may
present different exposures. A vehicle which had been used exclusively for personal use
may now also be used for commercial use, and in some instances, the vehicle may now
be used for commercial purposes more than 50 percent of the time it is being operated.
The use of mobile applications to connect TNC drivers with passengers also creates the
potential for additional driving distractions which could increase the risk of accidents.
Based on staff research, it is our understanding that when a passenger submits a ride
request, drivers receive a notification which then enables them to accept or decline the
request. This may require frequent monitoring of the mobile application by the drivers
leading to distracted driving. As such, the driver's focus on one or more smart-phones
while driving may result in riskier driving behavior.
The use of a telematics device may be an appropriate tool to properly evaluate the risk
and potentially rate for this type of exposure as it can indicate not only the amount of
time spent driving and miles driven by a TNC driver, but also the location of the vehicle,
the vehicle's driving patterns and the context in which they occur. Having the ability to
potentially compare data from when the vehicle is being used strictly for personal
purposes versus when the vehicle is being operated in the context of a ride-sharing
arrangement, may provide insurers valuable information in determining how participation
as a TNC driver, even if there is no passenger in the vehicle, may change the nature of the
risk.
INDUSTRY TRADE ASSOCIATION RESPONSE
The national insurance trade associations have been very active in discussing some of the
property and casualty issues with ride-sharing activities; however, positions may vary as
to what should be addressed in pending legislation in various jurisdictions. The trade
association Property Casualty Insurers Association of America (PCI) has drafted two
model legislations to date. According to staff’s research, these two draft model laws are
generally based on recently enacted legislation in California and Colorado. In addition to
PCI's two models, this is currently on the agenda for discussion at the following trade
associations:
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•
•
National Association of Insurance Commissioners (NAIC) - A Sharing Economy
Working Group was established to discuss the issue of ride-sharing and track
related matters 2.
National Conference of Insurance Legislators (NCOIL) - Ride-sharing services
was anticipated to be a topic of discussion at a November 2014 meeting 3.
HOW ARE STATES RESPONDING?
As of December 31, 2014, 20 states and the District of Columbia have issued
bulletins/advisory notices about possible insurance risks that may arise when using the
services of TNCs.
In 2014, two states (California and Colorado) enacted legislation that regulates ridesharing services. Additionally, as of December 31, 2014, thirteen other states and the
District of Columbia took up the issue of ride-sharing in 2014 via introducing related
legislation or regulations. Legislation in the District of Columbia is awaiting
Congressional approval while legislation is also pending in four states (Illinois, New
Jersey, Ohio, and Pennsylvania). Legislation failed to pass in Georgia, Maryland,
Michigan, and Oklahoma and was vetoed in Arizona and Illinois. Regulations are
currently pending in California, the District of Columbia, Kentucky, New Mexico and
Massachusetts.
General Statutory and Regulatory Themes
Although the statutory and regulatory requirements of legislation and regulations may
differ depending on the jurisdiction, there are some general themes that appear in most.
They include:
•
•
•
•
•
•
Defining a trip/service while logged on to a transportation network application
Establishment of distinct time periods or phases during a transportation network
trip/service
Insurance requirements for the respective time periods or phases
Requiring TNCs to confirm that a driver has met the state financial responsibility
or mandatory insurance requirements applicable to the vehicle
Safety guidelines (i.e. background checks, driver history checks, and vehicle
inspections)
Guidelines for sharing TNC data to assist in any accident or claim investigation
For state specific information please refer to the appendix.
2
3
http://www.naic.org/committees_c_sharing_econ_wg.htm
http://www.ncoil.org/news/2014_newsletters/Vol082014.pdf
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WHAT IS ISO DOING?
After actively monitoring the trends in ride-sharing arrangements through TNCs, ISO
staff has been working on various personal auto program enhancements to address some
of the potential new exposures described above. Such enhancements currently include an
Advisory Notice to Policyholders, reinforcing the current "public or livery conveyance"
exclusion and an additional coverage option.
For the ISO Commercial Auto Program, consideration is being currently given to
introducing classification and rating procedures specific for ride-sharing drivers and
possibly TNC's, as well a number of additional coverage options are also being
examined.
Advisory Notice to Policyholders
In September 2014, ISO staff introduced and made available PP P 011 09 14, Advisory
Notice to Policyholders Regarding Ride-Sharing which generally highlights the "public
or livery conveyance" exclusion under the ISO Personal Auto Program.
Reinforced Public or Livery Conveyance Exclusion
ISO staff is reinforcing the "public or livery conveyance" exclusion currently available
under the ISO Personal Auto Policy to generally reflect, that ownership or operation of a
vehicle while it is being used as a public or livery conveyance includes any period of time
while an insured is logged into a transportation network platform as a driver and that such
exclusion applies whether or not a passenger is occupying the vehicle.
Coverage Option
ISO Personal Auto staff is currently in the process of introducing an optional
endorsement which would provide an option to purchase coverage for Phases 1 and 2,
which is generally the period of time from when the driver logs into the platform up until
a passenger has entered the vehicle. We are also developing corresponding rules and
related rating information for this option.
While staff recognizes that currently the TNCs are reporting that primary coverage under
their insurance may be available for Phase 2, we anticipate that providing a coverage
option which addresses coverage for both Phases 1 and 2 may help reduce potential
claims handling difficulties for insurers.
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
The following chart provides a summary of pending/current state legislation and regulations that relate to Transportation Network
Companies (TNCs).
The Description column consists of up to four categories of information:
Definitions - Indicates whether the law/regulation defines TNC (or that State's nomenclature for TNC).
Insurance Coverage Requirements - Tracks whether a law/regulation mandates insurance for certain coverages, as indicated within,
during specific phases of a TNC trip/service. (Please refer to the chart provided within the white paper for a general description of
those phases, obtained by way of publically available information.) Those coverages may include:
• Liability Insurance
• Uninsured Motorist /Underinsured Motorist Coverage (UM/UIM)
• Collision/Comprehensive
• No-Fault/Medical Payments
Refer to the applicable law or regulation for a full description of coverage requirements and phases.
Insurance Coverage-related Disclosure Requirements For TNC - Indicates whether a law/regulation requires a TNC to disclose
insurance coverage requirements to drivers.
Other • Personal auto policy - Provisions related to a TNC driver's personal auto policy.
• Data sharing - Provisions related to the sharing of data collected by the TNC.
• Duty to defend - Provisions related to the duty to defend under a TNC driver’s personal auto policy.
*CAUTION: This summary contains certain laws and regulations reviewed by ISO. It is intended to assist you in your advanced
planning but should NOT be used as a substitute for your independent review of all laws and regulations to determine those
requirements which affect your operations. ISO makes no warranties, expressed or implied, that this is an exhaustive, allencompassing summary of all laws and regulations that may have an impact on your operation.
© Insurance Services Office, Inc., 2014
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
State
CA
Bill/Law/Regulation
CPUC Rule 12-12-011
Decision 13-09-045
Status
9/19/2013;
Effective
Description
Definitions - Defines TNC - Yes 1
•
CA
Chapter #389 (former
AB 2293)
Article 7 of Chapter 8
of Division 2 of the
California Public
Utilities Code
7/1/2015;
Effective
Insurance Coverage Requirements 2Liability Insurance - Phase 2,3
Insurance Coverage-related Disclosure Requirements For TNC - Yes 3
Definitions - Defines TNC - Yes 4
Insurance Coverage Requirements 5
• Liability Insurance - Phase 1,2 3
• UM/UIM - Phase 2, 3
Insurance Coverage-related Disclosure Requirements For TNC- Yes 6
Other
• Personal auto policy:
• “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”. 7
• “The participating driver's or the vehicle owner's personal
automobile insurance policy shall not provide any coverage to the
1
Section 2.2.4
Section 2.2.4 Safety Requirements
3
Section 2.2.4 Regulatory Requirements
4
Section 5431(a)
5
Section 5433
6
Section 5432
7
Section 5433 (d)
2
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
State
Bill/Law/Regulation
Status
Description
•
•
participating driver, vehicle owner, or any third party, unless the
policy expressly provides for that coverage during the period of
time to which this subdivision is applicable, with or without a
separate charge, or the policy contains an amendment or
endorsement to provide that coverage, for which a separately stated
premium is charged”. 8
Duty to defend- “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 to which this subdivision is applicable, with or without a separate
charge, or the policy contains an amendment or endorsement to provide
that coverage, for which a separately stated premium is charged”. 9
Data sharing- “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”. 10
8
Section 5434(b)(1)
Section 5434(b)(2)
10
Section 5435
9
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
CA
CA
CPUC Rule 12-12-011
**seeks to modify
Decision 13-09-045
Proposed;
6/10/2014
Assembly Bill 2224
Pending
Chapter 8.5 of Division
2 of the California
Public Utilities Code
Insurance Coverage Requirements 11
• Liability Insurance - Phase 1,2,3
• UM/UIM - Phase 1,2,3
• Collision/Comprehensive - Phase 1,2,3
• Medical Payments - Phase 1,2,3
Other
• Personal auto policy/Duty to defend- “Unless coverage for
Transportation Network Company (TNC) services is separately and
specifically stated in the policy and priced pursuant to approval by the
California Department of Insurance, a driver’s personal automobile policy
is in no way required to provide coverage or the duty to defend for TNC
services.” 12
Definitions - Defines TNC - Yes 13
Insurance Coverage Requirements 14
• Liability - Yes, no mention of phases
• No Fault - Yes, no mention of phases
11
Section 3.4.1
Section 113 Section 5430
13
Section 5430
14
Section 5431
12
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
CO
Chapter #323 (former
SB 125) adds
Part 6 to COL. REV.
STAT. §40-10.1
6/5/2014;
Effective
Definitions - Defines TNC - Yes 15
Insurance Coverage Requirements 16
• Liability Insurance - Phase 1,2,3
Insurance Coverage-related Disclosure Requirements For TNC - Yes 17
Other
• Personal auto policy – “At a minimum, contingent liability insurance
must provide liability coverage if the driver's insurer for personal
automobile insurance validly denies coverage under the terms of the
driver's personal automobile insurance policy or the driver otherwise does
not have personal automobile insurance coverage.” 18
• Data Sharing:
• “In a claims coverage investigation, a transportation network
company shall cooperate with a liability insurer that also insures
the driver's transportation network company vehicle, including the
provision of relevant dates and times during which an incident
occurred that involved the driver while the driver was logged into a
transportation network company's digital network.” 19
• “(I) A transportation network company shall not disclose to a third
party any personally identifiable information concerning a user of
the transportation network company's digital network unless:
A. the transportation network company obtains the user's
15
Section 40-10.1-602(3)
Section 40-10.1-604
17
Section 40-10.1-605(j)
18
Section 40-10.1-604(3)(a)
19
Section 40-10.1-604(7)
16
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
D.C.
2013 DC B20-0753
consent to disclose personally identifiable information;
B. disclosure is necessary to comply with a legal obligation; or
C. disclosure is necessary to protect or defend the terms and
conditions for use of the service or to investigate violations
of the terms and conditions.
• (II) The limitation on disclosure does not apply to the disclosure of
aggregated user data and other information about the user that is not
personally identifiable.” 20
Definitions - Defines TNC – Yes; referred to as a Private Vehicle-for-Hire
Company21
Published in
DC Register
on
12/5/2014 as Insurance Coverage Requirements 22
Act # A20• Liability - Phase 1,2,3
489
Awaiting
Insurance Coverage-related Disclosure Requirements for TNC - Yes 23
Congressional
Approval
Other
• Data sharing - "In a claims coverage investigation, a private vehicle-forhire company shall cooperate with any insurer that insures the private
vehicle-for-hire operator’s motor vehicle, including providing relevant
dates and times during which an accident occurred that involved the
operator to determine whether the operator was logged into a private
vehicle-for-hire company’s digital dispatch showing that the operator is
available to pick up passengers.” 24
20
Section 40-10.1-605(m)
Section 2(a)(2)(16B)
22
Section 2(k)(20j-3)
23
Section 2(k)(20j-3)
24
Section 2(k)(20j-3)
21
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
D.C.
IL
DC Taxicab
Commission Rule,
Chapter 17
Proposed;
5/16/2014
Senate Bill 2774
Pending;
12/15/2014;
sent to
Governor for
approval
Definitions - Defines TNC : Yes; referred to as a Private Sedan Service 25
Insurance Coverage Requirements 26
• Liability - Phase 1,2.3
• UM/UIM - Phase 1,2,3
• Collision/Comprehensive - Phase 1,2,3
Definitions - Defines TNC - Yes 27
Insurance Coverage Requirements 28
• Liability - Phase 1,2,3
• UM/UIM - Phase 2,3
Insurance Coverage-related Disclosure Requirements for TNC - Yes 29
Other
• Personal auto policy - “Coverage under an automobile liability insurance
policy required under [Section 10(c)] shall not be dependent on whether a
personal automobile insurance policy first denies the claim and a personal
automobile insurance policy is not required to first deny a claim.” 30
25
Chapter 99
Chapter 17 Section 1706
27
Section 5
28
Section 10
29
Section 10(f)
30
Section 10(c)(4)
26
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Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
KY
MA
601 KAR 1:112
540 CMR 2.00
Emergency;
12/5/2014
Proposed;
12/5/2014
Proposed;
12/19/2014
Definitions - Defines TNC - Yes 31
Insurance Coverage Requirements 32
• Liability - Phase 1,2,3
• UM/UIM - Phase 2,3
• No-Fault - Phase 1,2,3
Other
• Data Sharing - "(2) A TNC shall not disclose to a third party the
personally identifiable information of user of the TNC's mobile application
unless:
(a) The TNC 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
service or to investigate violations of the terms of use." 33
Definitions - Defines TNC - Yes 34
Insurance Coverage Requirements 35
• Liability - Yes, but no mention of phases.
31
Section 1(6)
Section 3
33
Section 7(2)
34
Section 2.05(3)
35
Section 2.05 (4.75)
32
© Insurance Services Office, Inc., 2014
Page viii
Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
NJ
2014 Assembly Bill
3765,
supplementing Title 39
of the New Jersey
Revised Statutes
Pending
Definitions - Defines TNC - Yes 36
Insurance Coverage Requirements 37
• Liability - Phase 1,2,3
• UM/UIM - Phase 1,2,3
• Medical Payments - Phase 1,2,3
Other
• Personal auto policy – “A policy of private passenger automobile
insurance shall not be deemed to be in force at any time a transportation
network driver is logged in to the transportation network company's digital
network or software application or when a passenger is in a transportation
network vehicle.” 38
• Data Sharing:
• “Cooperates with, and facilitates the exchange of information
between, the insurance company providing the transportation
network company the insurance required pursuant to section 5 of
P.L. , c. (C. ) (pending before the Legislature as this bill) and all
other insurers involved in a claims coverage investigation of an
occurrence while a transportation network driver is providing
transportation to a passenger.” 39
• “Retains records, for at least two years, of each transportation
network driver's use of a transportation network vehicle which
records shall include:
36
Section 1
Section 5
38
Section 5(c)
39
Section 3(l)
37
© Insurance Services Office, Inc., 2014
Page ix
Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
•
NJ
2014 Senate Bill 2519,
supplementing Title 39
of the New Jersey
Revised Statutes
Pending
the date, time, and duration of time during which the
transportation network driver logged on to the
transportation network company's digital network or
software application to indicate the transportation network
driver's availability;
• the locations and mileage data associated with the
transportation provided to each passenger, if available; and
• any claims for injury or property damage arising in
connection with transportation provided to a passenger,
including claims payments made, if applicable.” 40
• “Provides, upon request, the records retained pursuant to
subsection m. of this section to the transportation network driver's
private passenger automobile insurance for purposes of a claim
investigation.” 41
Definitions - Defines TNC - Yes 42
Insurance Coverage Requirements 43
• Liability - Phase 1,2,3
• UM/UIM - Phase 1,2,3
• Collision/Comprehensive - Phase 1,2,3
• Medical Payments - Phase 1,2,3
Insurance Coverage-related Disclosure Requirements for TNC - Yes 44
40
Section 3(m)
Section 3(n)
42
Section 2
43
Section 6(b)
44
Section 7
41
© Insurance Services Office, Inc., 2014
Page x
Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
NJ
2014 Senate Bill 2592
amending
C.39:5G-1
C.39:5G-2
R.S. 48:16-13
R.S. 48:16-22.3a
Pending
Other
• Personal auto policy - "No policy of private passenger automobile
insurance issued pursuant to P.L.1972, c.70 (C.39:6A-1 et seq.) shall be in
force during any period in which a person in a vehicle covered by that
policy is logged on to a transportation network company's digital network
as a transportation network driver”. 45
• Data sharing - "…the company shall maintain a log that establishes the
exact time that the transportation network driver logs on to the
transportation network company's digital network to indicate to the
transportation network company the driver's availability to pick up a
passenger or perform any other service, at which time the driver's private
passenger automobile insurance policy shall not be in effect, until the
transportation network driver logs off the company's digital network. The
log shall be kept for a period of at least five years by the transportation
network company and shall be made available upon the request of an
insurer in connection with any claim filed with the insurer, as well as
subject to discovery in any proceeding”; 46
Definitions - Defines TNC - Yes 47
Insurance Coverage Requirements 48
45
Section 6(a)
Section 4(g)
47
Section 3
48
Section 4
46
© Insurance Services Office, Inc., 2014
Page xi
Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
NM
NMAC 18.3.1 18.3.15
Proposed;
7/30/2014
Definitions - TNC - Yes 49
Insurance Coverage Requirements 50
• Liability - Phase 1,2,3
OH
2014 House Bill 679
Pending
Other
• Data sharing - "A TNC shall not disclose to a third party any personally
identifiable information concerning a user of the TNC's digital network
unless:
a. The TNC obtains the user's consent to disclose personally
identifiable information;
b. Disclosure is necessary to comply with a legal obligation; or
c. Disclosure is necessary to protect or defend the terms and
conditions for use of the service or to investigate violations of those
terms and conditions.” 51
Definitions - Defines TNC- Yes 52
Insurance Coverage Requirements 53
• Liability - Phase 1,2,3
• UM/UIM - Phase 1,2,3
• Collision/Comprehensive - Phase 1,2,3
• No Fault/Medical Payments - Phase 1,2,3
Insurance Coverage-related Disclosure Requirements for TNC - Yes 54
49
Section 18.3.1.7 V
Section 18.3.3.15
51
Section 18.3.2.9 I
52
Section 3938.01(D)
53
Section 3938.02
50
© Insurance Services Office, Inc., 2014
Page xii
Transportation Network Companies (TNCs)
Pending/Current Legislation and Regulations
*As of 12/31/2014
Other
• Personal auto policy/Duty to defend – "..(1)A personal lines insurer
providing primary or excess coverage to the owner of a personal vehicle
may exclude any and all coverage and the duty to defend and indemnify
afforded under the personal lines insurance policy for any loss or injury
that occurs while an insured personal vehicle or driver is providing
transportation network company services. The right to exclude coverage
and the duty to defend and indemnify applies to all coverage provided by
the insurer of the driver or owner of the personal vehicle including all of
the following:
a. Liability and physical damage coverage;
b. Uninsured and underinsured motorist coverage described in section
3937.18 of the Revised Code;
c. Uninsured and underinsured motor vehicle property damage
coverage described in section 3987.181 of the Revised Code;
d. Medical payments coverage for persons using or occupying the
personal vehicle;
e. Comprehensive physical damage coverage;
f. Collision physical damage coverage.” 55
54
55
Section 3938.04
Section 3938.03
© Insurance Services Office, Inc., 2014
Page xiii