Florida Senate - 2016 SB 1118 By Senator Simmons 10-00629-16 20161118__ 1 A bill to be entitled 2 An act relating to transportation network company 3 insurance; creating s. 627.748, F.S.; providing 4 legislative intent; defining terms; requiring a 5 transportation network company driver or such company 6 on the driver’s behalf, or a combination thereof, to 7 maintain primary automobile insurance issued by 8 specified insurers with certain coverages in specified 9 amounts during certain timeframes; requiring a 10 transportation network company driver to maintain 11 primary automobile insurance issued by specified 12 insurers with certain coverages in specified amounts 13 during certain timeframes; requiring the 14 transportation network company to provide automobile 15 insurance in the event insurance maintained by the 16 transportation network company driver lapses or does 17 not provide the required coverage; requiring a 18 transportation network company driver to carry proof 19 of certain insurance coverage at all times during his 20 or her use of a personal vehicle and to disclose 21 specified information in the event of an accident; 22 requiring a transportation network company to make 23 certain disclosures to transportation network company 24 drivers; authorizing insurers to exclude certain 25 coverages during specified periods for policies issued 26 to transportation network company drivers for personal 27 vehicles; requiring a transportation network company 28 and certain insurers to cooperate during a claims 29 investigation to facilitate the exchange of specified 30 information; requiring a transportation network 31 company to determine whether an individual’s personal 32 vehicle is subject to a lien before allowing the 33 individual to act as a driver and, if the vehicle is 34 subject to a lien, to verify that the insurance 35 required by this section provides coverage to the 36 lienholder during specified periods; providing that 37 unless agreed to in a written contract, a 38 transportation network company is not deemed to 39 control, direct, or manage the personal vehicles or 40 transportation network company drivers that connect to 41 its digital network; authorizing the Office of 42 Insurance Regulation to adopt rules; providing for 43 preemption of local laws and regulations pertaining to 44 transportation network company insurance; providing an 45 effective date. 46 47 Be It Enacted by the Legislature of the State of Florida: 48 49 Section 1. Section 627.748, Florida Statutes, is created to 50 read: 51 627.748 Transportation network company insurance.— 52 (1) It is the intent of the Legislature to provide for 53 statewide uniformity of laws governing the insurance 54 requirements imposed on transportation network companies and 55 transportation network company drivers. 56 (2) For purposes of this section, the term: 57 (a) “Digital network” means an online application, 58 software, website, or system offered or used by a transportation 59 network company which enables the prearrangement of rides with 60 transportation network company drivers. 61 (b) “Personal vehicle” means a vehicle, however titled, 62 which is used by a transportation network company driver in 63 connection with providing transportation network company service 64 and which: 65 1. Is owned, leased, or otherwise authorized for use by the 66 transportation network company driver; and 67 2. Is not a taxi, jitney, limousine, or for-hire vehicle as 68 that term is defined in s. 320.01(15). 69 (c) “Prearranged ride” means the provision of 70 transportation by a driver to or on behalf of a rider, beginning 71 when a driver accepts a request for a ride by a rider through a 72 digital network controlled by a transportation network company, 73 continuing while the driver transports the rider, and ending 74 when the last rider departs from the personal vehicle. A 75 prearranged ride does not include transportation provided using 76 a taxi, jitney, limousine, for-hire vehicle as defined in s. 77 320.01(15), or street hail service. 78 (d) “Transportation network company” or “company” means a 79 corporation, partnership, sole proprietorship, or other entity 80 operating in this state which uses a digital network to connect 81 transportation network company riders to transportation network 82 company drivers who provide prearranged rides. A transportation 83 network company does not include an individual, corporation, 84 partnership, sole proprietorship, or other entity arranging 85 nonemergency medical transportation for individuals qualifying 86 for Medicaid or Medicare pursuant to a contract with the state 87 or a managed care organization. 88 (e) “Transportation network company driver” or “driver” 89 means an individual who: 90 1. Receives connections to potential riders and related 91 services from a transportation network company in exchange for 92 any form of compensation, including payment of a fee to the 93 transportation network company; and 94 2. Uses a personal vehicle to offer or provide a 95 prearranged ride to riders upon connection through a digital 96 network controlled by a transportation network company in return 97 for compensation, including payment of a fee. 98 (f) “Transportation network company rider” or “rider” means 99 an individual who directly or indirectly uses a transportation 100 network company’s digital network to connect with a 101 transportation network company driver who provides 102 transportation services to the individual in the driver’s 103 personal vehicle. 104 (3)(a) A transportation network company driver, or a 105 transportation network company on the driver’s behalf, shall 106 maintain primary automobile insurance that recognizes that the 107 driver is a transportation network company driver or that the 108 driver otherwise uses a personal vehicle to transport riders for 109 compensation. Such primary automobile insurance must cover the 110 driver as required under this section, including while the 111 driver is logged on to the transportation network company’s 112 digital network and is engaged in a prearranged ride. 113 (b) The following automobile insurance coverage 114 requirements apply while a transportation network company driver 115 is logged on to the transportation network company’s digital 116 network and is available to receive transportation requests, but 117 is not engaged in a prearranged ride: 118 1. Primary automobile liability insurance coverage of at 119 least $50,000 for death and bodily injury per person, $100,000 120 for death and bodily injury per incident, and $25,000 for 121 property damage; and 122 2. Primary automobile insurance coverage that meets the 123 minimum requirements under ss. 627.730-627.7405. 124 (c) While engaged in a prearranged ride, a transportation 125 network company driver must be covered by primary automobile 126 liability insurance coverage of at least $1 million for death 127 and bodily injury and $50,000 for property damage. 128 (d) The coverage requirements of paragraphs (b) and (c) may 129 be satisfied by automobile insurance maintained by the 130 transportation network company driver, by the transportation 131 network company, or by a combination of both. 132 (e) If the insurance maintained by a driver under paragraph 133 (b) or paragraph (c) lapses or does not provide the required 134 coverage, the transportation network company must maintain 135 insurance that provides the coverage required by this section 136 beginning with the first dollar of a claim and must obligate the 137 insurer to defend such a claim in this state. 138 (f) Coverage under an automobile insurance policy 139 maintained by the transportation network company may not be 140 contingent on a denial of a claim under the driver’s personal 141 automobile liability insurance policy. 142 (g) Automobile insurance required by this section must be 143 provided by an insurer authorized to do business in this state 144 which is a member of the Florida Insurance Guaranty Association 145 or an eligible surplus lines insurer that is rated “A-” or 146 higher by A.M. Best Company. 147 (h) Automobile insurance that satisfies the requirements of 148 this section is deemed to satisfy the financial responsibility 149 requirements imposed under chapter 324 and the security 150 requirements imposed under s. 627.733. However, the provision of 151 transportation to persons for compensation that is not covered 152 under this section subjects a vehicle and driver to the 153 requirements of chapters 320 and 324. 154 (i) A transportation network company driver shall carry 155 proof of insurance coverage that meets the requirements of 156 paragraphs (b) and (c) at all times during his or her use of a 157 personal vehicle. In the event of an accident: 158 1. The driver shall provide the insurance coverage 159 information to the directly involved parties, automobile 160 insurers, and investigating law enforcement officers. Proof of 161 financial responsibility may be provided through a digital 162 telephone application under s. 316.646 which is controlled by a 163 transportation network company. 164 2. Upon request, the driver shall disclose to the directly 165 involved parties, automobile insurers, and investigating law 166 enforcement officers whether the driver, at the time of the 167 accident, was logged on to the transportation network company’s 168 digital network or engaged in a prearranged ride. 169 (j) Before a driver may accept a request for a prearranged 170 ride on the transportation network company’s digital network, 171 the transportation network company shall disclose in writing to 172 each transportation network company driver: 173 1. The type and limits of insurance coverage provided by 174 the transportation network company; 175 2. The type of automobile insurance coverage that the 176 driver must maintain while the driver uses a personal vehicle in 177 connection with the transportation network company; and 178 3. That the provision of rides for compensation, whether 179 prearranged or otherwise, which is not covered by this section 180 subjects the driver to the coverage requirements imposed by s. 181 324.032(1) and that failure to meet such limits subjects the 182 driver to penalties provided in s. 324.221, up to and including 183 a misdemeanor of the second degree. 184 (k) An insurer that provides personal automobile insurance 185 policies under this part may exclude from coverage under a 186 policy issued to an owner or operator of a personal vehicle any 187 loss or injury that occurs while a driver is logged on to a 188 transportation network company’s digital network or while a 189 driver is engaged in a prearranged ride. Such right to exclude 190 coverage applies to any coverage under an automobile insurance 191 policy, including, but not limited to: 192 1. Liability coverage for bodily injury and property 193 damage. 194 2. Personal injury protection coverage. 195 3. Uninsured and underinsured motorist coverage. 196 4. Medical payments coverage. 197 5. Comprehensive physical damage coverage. 198 6. Collision physical damage coverage. 199 (l) The exclusions authorized under paragraph (k) apply 200 notwithstanding any financial responsibility requirements under 201 chapter 324. This section does not require that a personal 202 automobile insurance policy provide coverage while the driver is 203 logged on to the transportation network company’s digital 204 network, while the driver is engaged in a prearranged ride, or 205 while the driver otherwise uses a personal vehicle to transport 206 riders for compensation. However, an insurer may elect to 207 provide coverage by contract or endorsement for such driver’s 208 personal vehicle used for such purposes. 209 (m) An insurer that excludes coverage as authorized under 210 paragraph (k): 211 1. Does not have a duty to defend or indemnify an excluded 212 claim. This section does not invalidate or limit an exclusion 213 contained in a policy, including any policy in use or approved 214 for use in this state before July 1, 2016. 215 2. Has a right of contribution against other insurers that 216 provide automobile insurance to the same driver in satisfaction 217 of the coverage requirements of this section at the time of 218 loss, if the insurer defends or indemnifies a claim against a 219 driver which is excluded under the terms of its policy. 220 (n) In a claims investigation, a transportation network 221 company and any insurer potentially providing coverage for a 222 claim under this section shall cooperate to facilitate the 223 exchange of relevant information with directly involved parties 224 and insurers of the transportation network company driver, if 225 applicable. Such information must provide: 226 1. The precise times that a driver logged on and off the 227 transportation network company’s digital network during the 12 228 hour period immediately before and immediately after the 229 accident. 230 2. A clear description of the coverage, any exclusions, and 231 the limits provided under automobile insurance maintained under 232 this section. 233 (o) Before allowing an individual to act as a driver on its 234 digital network, a transportation network company shall 235 determine whether the driver’s personal vehicle is subject to a 236 lien. If the personal vehicle is subject to a lien, the 237 transportation network company shall verify that the insurance 238 required by this section provides coverage to the lienholder 239 while the driver is logged into the transportation network 240 company’s digital network and while the driver is providing a 241 prearranged ride. 242 (4) Unless agreed to in a written contract, a 243 transportation network company is not deemed to control, direct, 244 or manage the personal vehicles that, or the transportation 245 network company drivers who, connect to its digital network. 246 (5) The office may adopt rules to administer this section. 247 Section 2. PREEMPTION.—Notwithstanding any other law, 248 transportation network company insurance requirements are 249 governed exclusively by this section and any rules adopted by 250 the Department of Financial Services to administer this section. 251 A political subdivision of this state may not adopt any 252 ordinance imposing insurance requirements on a transportation 253 network company or driver. All such ordinances, whether existing 254 or proposed, are preempted and superseded by general law. 255 Section 3. This act shall take effect January 1, 2017.