Florida Senate - 2016 CS for SB 1118 By the Committee on Banking and Insurance; and Senator Simmons 597-02311-16 20161118c1 1 A bill to be entitled 2 An act relating to transportation network company 3 insurance; amending s. 316.066, F.S.; requiring a 4 statement in certain crash reports as to whether any 5 driver at the time of the accident was providing a 6 prearranged ride or logged into a digital network of a 7 transportation network company; providing a criminal 8 penalty for a driver who provides a false statement to 9 a law enforcement officer in connection with certain 10 information; creating s. 627.748, F.S.; providing 11 legislative intent; defining terms; requiring a 12 transportation network company driver, or the 13 transportation network company on the driver’s behalf, 14 to maintain certain primary automobile insurance under 15 certain circumstances; providing coverage requirements 16 under specified circumstances; requiring a 17 transportation network company to maintain certain 18 insurance and obligate the insurer to defend a certain 19 claim if specified insurance by the driver lapses or 20 does not provide the required coverage; providing that 21 certain coverage may not be contingent on a claim 22 denial; specifying requirements for insurers who 23 provide certain automobile insurance; requiring a 24 transportation network company driver to carry proof 25 of certain insurance coverage at all times during his 26 or her use of a personal vehicle and to disclose 27 specified information in the event of an accident; 28 requiring a transportation network company to make 29 certain disclosures to transportation network company 30 drivers; authorizing insurers to exclude certain 31 coverages during specified periods for policies issued 32 to transportation network company drivers for personal 33 vehicles; requiring a transportation network company 34 and certain insurers to cooperate during a claims 35 investigation to facilitate the exchange of specified 36 information; requiring a transportation network 37 company to cause its insurer to issue payments for 38 claims directly to specified entities under certain 39 circumstances; providing that unless agreed to in a 40 written contract, a transportation network company is 41 not deemed to control, direct, or manage the personal 42 vehicles or transportation network company drivers 43 that connect to its digital network; authorizing the 44 Financial Services Commission to adopt rules; 45 providing for preemption of local laws and regulations 46 pertaining to transportation network company 47 insurance; providing an effective date. 48 49 Be It Enacted by the Legislature of the State of Florida: 50 51 Section 1. Paragraphs (b) and (c) of subsection (1) of 52 section 316.066, Florida Statutes, are amended, and paragraph 53 (e) is added to subsection (3) of that section, to read: 54 316.066 Written reports of crashes.— 55 (1) 56 (b) The Florida Traffic Crash Report, Long Form must 57 include: 58 1. The date, time, and location of the crash. 59 2. A description of the vehicles involved. 60 3. The names and addresses of the parties involved, 61 including all drivers and passengers, and the identification of 62 the vehicle in which each was a driver or a passenger. 63 4. The names and addresses of witnesses. 64 5. The name, badge number, and law enforcement agency of 65 the officer investigating the crash. 66 6. The names of the insurance companies for the respective 67 parties involved in the crash. 68 7. A statement as to whether, at the time of the accident, 69 any driver was providing a prearranged ride or logged into a 70 digital network of a transportation network company, as those 71 terms are defined in s. 627.748. 72 (c) In any crash for which a Florida Traffic Crash Report, 73 Long Form is not required by this section and which occurs on 74 the public roadways of this state, the law enforcement officer 75 shall complete a short-form crash report or provide a driver 76 exchange-of-information form, to be completed by all drivers and 77 passengers involved in the crash, which requires the 78 identification of each vehicle that the drivers and passengers 79 were in. The short-form report must include: 80 1. The date, time, and location of the crash. 81 2. A description of the vehicles involved. 82 3. The names and addresses of the parties involved, 83 including all drivers and passengers, and the identification of 84 the vehicle in which each was a driver or a passenger. 85 4. The names and addresses of witnesses. 86 5. The name, badge number, and law enforcement agency of 87 the officer investigating the crash. 88 6. The names of the insurance companies for the respective 89 parties involved in the crash. 90 7. A statement as to whether, at the time of the accident, 91 any driver was providing a prearranged ride or logged into a 92 digital network of a transportation network company, as those 93 terms are defined in s. 627.748. 94 (3) 95 (e) Any driver who provides a false statement to a law 96 enforcement officer in connection with the information that is 97 required to be reported under subparagraph (1)(b)7. or 98 subparagraph (1)(c)7. commits a misdemeanor of the second 99 degree, punishable as provided in s. 775.082 or s. 775.083. 100 Section 2. Section 627.748, Florida Statutes, is created to 101 read: 102 627.748 Transportation network company insurance.— 103 (1) It is the intent of the Legislature to provide for 104 statewide uniformity of laws governing the insurance 105 requirements imposed on transportation network companies and 106 transportation network company drivers. 107 (2) For purposes of this section, the term: 108 (a) “Digital network” means an online application, 109 software, website, or system offered or used by a transportation 110 network company which enables the prearrangement of rides with 111 transportation network company drivers. 112 (b) “Personal vehicle” means a vehicle, however titled, 113 which is used by a transportation network company driver in 114 connection with providing transportation network company service 115 and which: 116 1. Is owned, leased, or otherwise authorized for use by the 117 transportation network company driver; and 118 2. Is not a taxi, jitney, limousine, or for-hire vehicle as 119 that term is defined in s. 320.01(15). 120 121 Notwithstanding any other law, a vehicle that is let or rented 122 to another for consideration may be used as a personal vehicle. 123 (c) “Prearranged ride” means the provision of 124 transportation by a driver to or on behalf of a rider, beginning 125 when a driver accepts a request for a ride by a rider through a 126 digital network controlled by a transportation network company, 127 continuing while the driver transports the rider, and ending 128 when the last rider departs from the personal vehicle. A 129 prearranged ride does not include transportation provided using 130 a taxi, jitney, limousine, for-hire vehicle as defined in s. 131 320.01(15), or street hail service. 132 (d) “Transportation network company” or “company” means a 133 corporation, partnership, sole proprietorship, or other entity 134 operating in this state which uses a digital network to connect 135 transportation network company riders to transportation network 136 company drivers who provide prearranged rides. A transportation 137 network company does not include an individual, corporation, 138 partnership, sole proprietorship, or other entity arranging 139 nonemergency medical transportation for individuals qualifying 140 for Medicaid or Medicare pursuant to a contract with the state 141 or a managed care organization. 142 (e) “Transportation network company driver” or “driver” 143 means an individual who: 144 1. Receives connections to potential riders and related 145 services from a transportation network company in exchange for 146 any form of compensation, including payment of a fee to the 147 transportation network company; and 148 2. Uses a personal vehicle to offer or provide a 149 prearranged ride to riders upon connection through a digital 150 network controlled by a transportation network company in return 151 for compensation, including payment of a fee. 152 (f) “Transportation network company rider” or “rider” means 153 an individual who directly or indirectly uses a transportation 154 network company’s digital network to connect with a 155 transportation network company driver who provides 156 transportation services to the individual in the driver’s 157 personal vehicle. 158 (3)(a) A transportation network company driver, or a 159 transportation network company on the driver’s behalf, shall 160 maintain primary automobile insurance that recognizes that the 161 driver is a transportation network company driver or that the 162 driver otherwise uses a personal vehicle to transport riders for 163 compensation. Such primary automobile insurance must cover the 164 driver as required under this section, including while the 165 driver is logged on to the transportation network company’s 166 digital network but is not engaged in a prearranged ride, and 167 while the driver is engaged in a prearranged ride. 168 (b) The following automobile insurance coverage 169 requirements apply while a transportation network company driver 170 is logged on to the transportation network company’s digital 171 network but is not engaged in a prearranged ride, and while the 172 driver is engaged in a prearranged ride: 173 1. Primary automobile liability insurance coverage of at 174 least $125,000 for death and bodily injury per person, $250,000 175 for death and bodily injury per incident, and $50,000 for 176 property damage; and 177 2. Primary automobile insurance coverage that meets the 178 minimum requirements under ss. 627.730-627.7405. 179 (c) At all times other than the periods specified in 180 paragraph (b), the following automobile insurance requirements 181 apply if a driver has an agreement with a transportation network 182 company to provide any form of transportation service to riders: 183 1. Primary automobile liability insurance coverage of at 184 least $25,000 for death and bodily injury per person, $50,000 185 for death and bodily injury per incident, and $10,000 for 186 property damage; and 187 2. Primary automobile insurance that provides the minimum 188 requirements under ss. 627.730-627.7405. 189 (d) The coverage requirements of paragraphs (b) and (c) may 190 be satisfied by automobile insurance maintained by the 191 transportation network company driver, by the transportation 192 network company, or by a combination of both. 193 (e) If the insurance maintained by a driver under paragraph 194 (b) lapses or does not provide the required coverage, the 195 transportation network company must maintain insurance that 196 provides the coverage required by this section beginning with 197 the first dollar of a claim and must obligate the insurer to 198 defend such a claim in this state. 199 (f) Coverage under an automobile insurance policy 200 maintained by the transportation network company may not be 201 contingent on a denial of a claim under the driver’s personal 202 automobile liability insurance policy, nor shall a personal 203 automobile insurer be required to first deny a claim. 204 (g) Automobile insurance required by this section must be 205 provided by an insurer authorized to do business in this state 206 which is a member of the Florida Insurance Guaranty Association 207 or an eligible surplus lines insurer that has a superior, an 208 excellent, an exceptional, or an equivalent financial strength 209 rating by a rating agency acceptable to the office. 210 (h) Automobile insurance that satisfies the requirements of 211 this section is deemed to satisfy the financial responsibility 212 requirements imposed under chapter 324 and the security 213 requirements imposed under s. 627.733. However, the provision of 214 transportation to persons for compensation that is not covered 215 under this section subjects a vehicle and driver to the 216 requirements of chapters 320 and 324. 217 (i) A transportation network company driver shall carry 218 proof of insurance coverage that meets the requirements of 219 paragraphs (b) and (c) at all times during his or her use of a 220 personal vehicle. In the event of an accident: 221 1. The driver shall provide the insurance coverage 222 information to the directly involved parties, automobile 223 insurers, and investigating law enforcement officers. Proof of 224 financial responsibility may be provided through a digital 225 telephone application under s. 316.646 which is controlled by a 226 transportation network company. 227 2. Upon request, the driver shall disclose to the directly 228 involved parties, automobile insurers, and investigating law 229 enforcement officers whether the driver, at the time of the 230 accident, was logged on to the transportation network company’s 231 digital network or engaged in a prearranged ride. 232 (j) Before a driver may accept a request for a prearranged 233 ride on the transportation network company’s digital network, 234 the transportation network company shall disclose in writing to 235 each transportation network company driver: 236 1. The type and limits of insurance coverage provided by 237 the transportation network company; 238 2. The type of automobile insurance coverage that the 239 driver must maintain while the driver uses a personal vehicle in 240 connection with the transportation network company; and 241 3. That the provision of rides for compensation, whether 242 prearranged or otherwise, which is not covered by this section 243 subjects the driver to the coverage requirements imposed by s. 244 324.032(1) and that failure to meet such limits subjects the 245 driver to penalties provided in s. 324.221, up to and including 246 a misdemeanor of the second degree. 247 (k) An insurer that provides personal automobile insurance 248 policies under this part may exclude from coverage under a 249 policy issued to an owner or operator of a personal vehicle any 250 loss or injury that occurs while a driver is logged on to a 251 transportation network company’s digital network or while a 252 driver is engaged in a prearranged ride. Such right to exclude 253 coverage applies to any coverage under an automobile insurance 254 policy, including, but not limited to: 255 1. Liability coverage for bodily injury and property 256 damage. 257 2. Personal injury protection coverage. 258 3. Uninsured and underinsured motorist coverage. 259 4. Medical payments coverage. 260 5. Comprehensive physical damage coverage. 261 6. Collision physical damage coverage. 262 (l) The exclusions authorized under paragraph (k) apply 263 notwithstanding any financial responsibility requirements under 264 chapter 324. This section does not require that a personal 265 automobile insurance policy provide coverage while the driver is 266 logged on to the transportation network company’s digital 267 network, while the driver is engaged in a prearranged ride, or 268 while the driver otherwise uses a personal vehicle to transport 269 riders for compensation. However, an insurer may elect to 270 provide coverage by contract or endorsement for such driver’s 271 personal vehicle used for such purposes. 272 (m) An insurer that excludes coverage as authorized under 273 paragraph (k): 274 1. Does not have a duty to defend or indemnify an excluded 275 claim. This section does not invalidate or limit an exclusion 276 contained in a policy, including any policy in use or approved 277 for use in this state before July 1, 2017. 278 2. Has a right of contribution against other insurers that 279 provide automobile insurance to the same driver in satisfaction 280 of the coverage requirements of this section at the time of 281 loss, if the insurer defends or indemnifies a claim against a 282 driver which is excluded under the terms of its policy. 283 (n) In a claims investigation, a transportation network 284 company and any insurer providing coverage for a claim under 285 this section shall cooperate to facilitate the exchange of 286 relevant information with directly involved parties and insurers 287 of the transportation network company driver, if applicable. 288 Such information must provide: 289 1. The precise times that a driver logged on and off the 290 transportation network company’s digital network during the 12 291 hour period immediately before and immediately after the 292 accident. 293 2. A clear description of the coverage, any exclusions, and 294 the limits provided under automobile insurance maintained under 295 this section. 296 (o) If a transportation network company’s insurer makes a 297 payment for a claim covered under comprehensive coverage or 298 collision coverage, the transportation network company shall 299 cause its insurer to issue the payment directly to the entity 300 repairing the vehicle or jointly to the owner of the vehicle and 301 the primary lienholder on the covered vehicle. 302 (4) Unless agreed to in a written contract, a 303 transportation network company is not deemed to control, direct, 304 or manage the personal vehicles that, or the transportation 305 network company drivers who, connect to its digital network. 306 (5) The Financial Services Commission may adopt rules to 307 administer this section. 308 Section 3. PREEMPTION.—Notwithstanding any other law, 309 transportation network company insurance requirements are 310 governed exclusively by this section and any rules adopted by 311 the Financial Services Commission to administer this section. A 312 political subdivision of this state may not adopt any ordinance 313 imposing insurance requirements on a transportation network 314 company or driver. All such ordinances, whether existing or 315 proposed, are preempted and superseded by general law. 316 Section 4. This act shall take effect January 1, 2017.