Florida Senate - 2016 CS for CS for SB 1118 By the Committees on Judiciary; and Banking and Insurance; and Senator Simmons 590-03304A-16 20161118c2 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; requiring a 44 transportation network company to provide a specified 45 notice to transportation network company drivers; 46 authorizing the Financial Services Commission to adopt 47 rules; providing for preemption of local laws and 48 regulations pertaining to transportation network 49 company insurance; providing an effective date. 50 51 Be It Enacted by the Legislature of the State of Florida: 52 53 Section 1. Paragraphs (b) and (c) of subsection (1) of 54 section 316.066, Florida Statutes, are amended, and paragraph 55 (e) is added to subsection (3) of that section, to read: 56 316.066 Written reports of crashes.— 57 (1) 58 (b) The Florida Traffic Crash Report, Long Form must 59 include: 60 1. The date, time, and location of the crash. 61 2. A description of the vehicles involved. 62 3. The names and addresses of the parties involved, 63 including all drivers and passengers, and the identification of 64 the vehicle in which each was a driver or a passenger. 65 4. The names and addresses of witnesses. 66 5. The name, badge number, and law enforcement agency of 67 the officer investigating the crash. 68 6. The names of the insurance companies for the respective 69 parties involved in the crash. 70 7. A statement as to whether, at the time of the accident, 71 any driver was providing a prearranged ride or logged into a 72 digital network of a transportation network company, as those 73 terms are defined in s. 627.748. 74 (c) In any crash for which a Florida Traffic Crash Report, 75 Long Form is not required by this section and which occurs on 76 the public roadways of this state, the law enforcement officer 77 shall complete a short-form crash report or provide a driver 78 exchange-of-information form, to be completed by all drivers and 79 passengers involved in the crash, which requires the 80 identification of each vehicle that the drivers and passengers 81 were in. The short-form report must include: 82 1. The date, time, and location of the crash. 83 2. A description of the vehicles involved. 84 3. The names and addresses of the parties involved, 85 including all drivers and passengers, and the identification of 86 the vehicle in which each was a driver or a passenger. 87 4. The names and addresses of witnesses. 88 5. The name, badge number, and law enforcement agency of 89 the officer investigating the crash. 90 6. The names of the insurance companies for the respective 91 parties involved in the crash. 92 7. A statement as to whether, at the time of the accident, 93 any driver was providing a prearranged ride or logged into a 94 digital network of a transportation network company, as those 95 terms are defined in s. 627.748. 96 (3) 97 (e) Any driver who provides a false statement to a law 98 enforcement officer in connection with the information that is 99 required to be reported under subparagraph (1)(b)7. or 100 subparagraph (1)(c)7. commits a misdemeanor of the second 101 degree, punishable as provided in s. 775.082 or s. 775.083. 102 Section 2. Section 627.748, Florida Statutes, is created to 103 read: 104 627.748 Transportation network company insurance.— 105 (1) It is the intent of the Legislature to provide for 106 statewide uniformity of laws governing the insurance 107 requirements imposed on transportation network companies and 108 transportation network company drivers. 109 (2) For purposes of this section, the term: 110 (a) “Digital network” means an online application, 111 software, website, or system offered or used by a transportation 112 network company which enables the prearrangement of rides with 113 transportation network company drivers. 114 (b) “Personal vehicle” means a vehicle, however titled, 115 which is used by a transportation network company driver in 116 connection with providing transportation network company service 117 and which: 118 1. Is owned, leased, or otherwise authorized for use by the 119 transportation network company driver; and 120 2. Is not a taxi, jitney, limousine, or for-hire vehicle as 121 that term is defined in s. 320.01(15). 122 123 Notwithstanding any other law, a vehicle that is let or rented 124 to another for consideration may be used as a personal vehicle. 125 (c) “Prearranged ride” means the provision of 126 transportation by a driver to or on behalf of a rider, beginning 127 when a driver accepts a request for a ride by a rider through a 128 digital network controlled by a transportation network company, 129 continuing while the driver transports the rider, and ending 130 when the last rider departs from the personal vehicle. A 131 prearranged ride does not include transportation provided using 132 a taxi, jitney, limousine, for-hire vehicle as defined in s. 133 320.01(15), or street hail service. 134 (d) “Transportation network company” or “company” means a 135 corporation, partnership, sole proprietorship, or other entity 136 operating in this state which uses a digital network to connect 137 transportation network company riders to transportation network 138 company drivers who provide prearranged rides. A transportation 139 network company does not include an individual, corporation, 140 partnership, sole proprietorship, or other entity arranging 141 nonemergency medical transportation for individuals qualifying 142 for Medicaid or Medicare pursuant to a contract with the state 143 or a managed care organization. 144 (e) “Transportation network company driver” or “driver” 145 means an individual who: 146 1. Receives connections to potential riders and related 147 services from a transportation network company in exchange for 148 any form of compensation, including payment of a fee to the 149 transportation network company; and 150 2. Uses a personal vehicle to offer or provide a 151 prearranged ride to riders upon connection through a digital 152 network controlled by a transportation network company in return 153 for compensation, including payment of a fee. 154 (f) “Transportation network company rider” or “rider” means 155 an individual who directly or indirectly uses a transportation 156 network company’s digital network to connect with a 157 transportation network company driver who provides 158 transportation services to the individual in the driver’s 159 personal vehicle. 160 (3)(a) A transportation network company driver, or a 161 transportation network company on the driver’s behalf, shall 162 maintain primary automobile insurance that recognizes that the 163 driver is a transportation network company driver or that the 164 driver otherwise uses a personal vehicle to transport riders for 165 compensation. Such primary automobile insurance must cover the 166 driver as required under this section, including while the 167 driver is logged on to the transportation network company’s 168 digital network but is not engaged in a prearranged ride, and 169 while the driver is engaged in a prearranged ride. 170 (b) The following automobile insurance coverage 171 requirements apply while a transportation network company driver 172 is logged on to the transportation network company’s digital 173 network but is not engaged in a prearranged ride, and while the 174 driver is engaged in a prearranged ride: 175 1. Primary automobile liability insurance coverage of at 176 least $125,000 for death and bodily injury per person, $250,000 177 for death and bodily injury per incident, and $50,000 for 178 property damage; and 179 2. Primary automobile insurance coverage that meets the 180 minimum requirements under ss. 627.730-627.7405. 181 (c) At all times other than the periods specified in 182 paragraph (b), the following automobile insurance requirements 183 apply if a driver has an agreement with a transportation network 184 company to provide any form of transportation service to riders: 185 1. Primary automobile liability insurance coverage of at 186 least $25,000 for death and bodily injury per person, $50,000 187 for death and bodily injury per incident, and $10,000 for 188 property damage; and 189 2. Primary automobile insurance that provides the minimum 190 requirements under ss. 627.730-627.7405. 191 (d) The coverage requirements of paragraphs (b) and (c) may 192 be satisfied by automobile insurance maintained by the 193 transportation network company driver, by the transportation 194 network company, or by a combination of both. 195 (e) If the insurance maintained by a driver under paragraph 196 (b) lapses or does not provide the required coverage, the 197 transportation network company must maintain insurance that 198 provides the coverage required by this section beginning with 199 the first dollar of a claim and must obligate the insurer to 200 defend such a claim in this state. 201 (f) Coverage under an automobile insurance policy 202 maintained by the transportation network company may not be 203 contingent on a denial of a claim under the driver’s personal 204 automobile liability insurance policy, nor shall a personal 205 automobile insurer be required to first deny a claim. 206 (g) Automobile insurance required by this section must be 207 provided by an insurer authorized to do business in this state 208 which is a member of the Florida Insurance Guaranty Association 209 or an eligible surplus lines insurer that has a superior, an 210 excellent, an exceptional, or an equivalent financial strength 211 rating by a rating agency acceptable to the office. 212 (h) Automobile insurance that satisfies the requirements of 213 this section is deemed to satisfy the financial responsibility 214 requirements imposed under chapter 324 and the security 215 requirements imposed under s. 627.733. However, the provision of 216 transportation to persons for compensation that is not covered 217 under this section subjects a vehicle and driver to the 218 requirements of chapters 320 and 324. 219 (i) A transportation network company driver shall carry 220 proof of insurance coverage that meets the requirements of 221 paragraphs (b) and (c) at all times during his or her use of a 222 personal vehicle. In the event of an accident: 223 1. The driver shall provide the insurance coverage 224 information to the directly involved parties, automobile 225 insurers, and investigating law enforcement officers. Proof of 226 financial responsibility may be provided through a digital 227 telephone application under s. 316.646 which is controlled by a 228 transportation network company. 229 2. Upon request, the driver shall disclose to the directly 230 involved parties, automobile insurers, and investigating law 231 enforcement officers whether the driver, at the time of the 232 accident, was logged on to the transportation network company’s 233 digital network or engaged in a prearranged ride. 234 (j) Before a driver may accept a request for a prearranged 235 ride on the transportation network company’s digital network, 236 the transportation network company shall disclose in writing to 237 each transportation network company driver: 238 1. The type and limits of insurance coverage provided by 239 the transportation network company; 240 2. The type of automobile insurance coverage that the 241 driver must maintain while the driver uses a personal vehicle in 242 connection with the transportation network company; and 243 3. That the provision of rides for compensation, whether 244 prearranged or otherwise, which is not covered by this section 245 subjects the driver to the coverage requirements imposed by s. 246 324.032(1) and that failure to meet such limits subjects the 247 driver to penalties provided in s. 324.221, up to and including 248 a misdemeanor of the second degree. 249 (k) An insurer that provides personal automobile insurance 250 policies under this part may exclude from coverage under a 251 policy issued to an owner or operator of a personal vehicle any 252 loss or injury that occurs while a driver is logged on to a 253 transportation network company’s digital network or while a 254 driver is engaged in a prearranged ride. Such right to exclude 255 coverage applies to any coverage under an automobile insurance 256 policy, including, but not limited to: 257 1. Liability coverage for bodily injury and property 258 damage. 259 2. Personal injury protection coverage. 260 3. Uninsured and underinsured motorist coverage. 261 4. Medical payments coverage. 262 5. Comprehensive physical damage coverage. 263 6. Collision physical damage coverage. 264 (l) The exclusions authorized under paragraph (k) apply 265 notwithstanding any financial responsibility requirements under 266 chapter 324. This section does not require that a personal 267 automobile insurance policy provide coverage while the driver is 268 logged on to the transportation network company’s digital 269 network, while the driver is engaged in a prearranged ride, or 270 while the driver otherwise uses a personal vehicle to transport 271 riders for compensation. However, an insurer may elect to 272 provide coverage by contract or endorsement for such driver’s 273 personal vehicle used for such purposes. 274 (m) An insurer that excludes coverage as authorized under 275 paragraph (k): 276 1. Does not have a duty to defend or indemnify an excluded 277 claim. This section does not invalidate or limit an exclusion 278 contained in a policy, including any policy in use or approved 279 for use in this state before July 1, 2017. 280 2. Has a right of contribution against other insurers that 281 provide automobile insurance to the same driver in satisfaction 282 of the coverage requirements of this section at the time of 283 loss, if the insurer defends or indemnifies a claim against a 284 driver which is excluded under the terms of its policy. 285 (n) In a claims investigation, a transportation network 286 company and any insurer providing coverage for a claim under 287 this section shall cooperate to facilitate the exchange of 288 relevant information with directly involved parties and insurers 289 of the transportation network company driver, if applicable. 290 Such information must provide: 291 1. The precise times that a driver logged on and off the 292 transportation network company’s digital network during the 12 293 hour period immediately before and immediately after the 294 accident. 295 2. A clear description of the coverage, any exclusions, and 296 the limits provided under automobile insurance maintained under 297 this section. 298 (o) If a transportation network company’s insurer makes a 299 payment for a claim covered under comprehensive coverage or 300 collision coverage, the transportation network company shall 301 cause its insurer to issue the payment directly to the entity 302 repairing the vehicle or jointly to the owner of the vehicle and 303 the primary lienholder on the covered vehicle. 304 (4) Unless agreed to in a written contract, a 305 transportation network company is not deemed to control, direct, 306 or manage the personal vehicles that, or the transportation 307 network company drivers who, connect to its digital network. 308 (5) A transportation network company shall provide an 309 electronic notice to transportation network company drivers 310 which states that it is illegal for a transportation network 311 company driver to solicit or accept a ride if the ride is not 312 arranged through a transportation network company’s digital 313 network, and that such rides may not be covered by a 314 transportation network company driver’s or a transportation 315 network company’s insurance policy. 316 (6) The Financial Services Commission may adopt rules to 317 administer this section. 318 Section 3. PREEMPTION.—Notwithstanding any other law, 319 transportation network company insurance requirements are 320 governed exclusively by this section and any rules adopted by 321 the Financial Services Commission to administer this section. A 322 political subdivision of this state may not adopt any ordinance 323 imposing insurance requirements on a transportation network 324 company or driver. All such ordinances, whether existing or 325 proposed, are preempted and superseded by general law. 326 Section 4. This act shall take effect January 1, 2017.