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.