Bill Text: CA AB2224 | 2013-2014 | Regular Session | Amended
Bill Title: Transportation network companies: insurance coverage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-28 - In committee: Hearing postponed by committee. [AB2224 Detail]
Download: California-2013-AB2224-Amended.html
BILL NUMBER: AB 2224 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 20, 2014
An act to amend Section 667.5 of the Insurance Code,
relating to insurance. An act to add Chapter 8.5
(commencing with Section 5430) to Division 2 of the Public Utilities
Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2224, as amended, Nazarian. Insurance: cancellation:
failure to renew. Transportation network companies:
insurance coverage.
Under existing law, the Passenger Charter-party Carriers' Act, the
Public Utilities Commission has adopted rules and regulations
relating to public safety risks in the operation of transportation
services utilizing transportation network companies. Those
regulations define a transportation network company as an
organization operating in California that provides prearranged
transportation services for compensation using an online-enabled
platform to connect passengers with drivers using their personal
vehicles. Existing regulations of the commission require, among other
things, a transportation network company to acquire a commercial
liability insurance policy for incidents involving transportation
network company vehicles and drivers in transit to or during a
transportation network company trip.
This bill would more broadly define "transportation network
company" by excluding the requirement that a transportation network
company trip be prearranged and would provide that the Public
Utilities Commission shall require a transportation network company
to have in effect a primary commercial motor vehicle liability
insurance policy to cover the vehicles of its participating drivers,
as part of its agreement with those drivers, with respect to personal
injury liability, property damage liability, and personal injury
protection liability benefits available to drivers, passengers,
pedestrians, and others, as specified.
Existing law requires, with exceptions, that the cancellation of
an insurance policy or any change in the policy, executed by the
insurer at the request of the named insured designated on the
declarations page of the policy, is binding on any other insured or
named insured. The insurer is required to mail or deliver the notice
of cancellation or an endorsement evidencing the named insured's
request to all individuals or entities designated as named insureds
on the declarations page of the policy.
This bill would make technical, nonsubstantive changes to those
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 8.5 (commencing with Section
5430) is added to Division 2 of the Public Utilities Code
, to read:
CHAPTER 8.5. TRANSPORTATION NETWORK COMPANIES
5430. As used in this chapter, a "transportation network company"
is an organization, including, but not limited to, a corporation,
partnership, or sole proprietor, operating in this state, that
provides transportation services for compensation using an
online-enabled application or platform to connect passengers with
drivers using their personal vehicles.
5431. The commission shall require a transportation network
company to have in effect a primary commercial motor vehicle
liability insurance policy to cover the vehicles of its participating
drivers, as part of its agreement with those drivers, with respect
to personal injury liability, property damage liability, and personal
injury protection liability benefits available to drivers,
passengers, pedestrians, and others, with a minimum coverage of at
least one million dollars ($1,000,000) per incident.
SECTION 1. Section 667.5 of the Insurance Code
is amended to read:
667.5. (a) Unless a policy specifically provides otherwise, the
cancellation of a policy, or any change in a policy, executed by an
insurer, at the request of the named insured designated on the
declarations page of the policy, shall be binding upon any other
insured or named insured.
(b) Notice of cancellation or an endorsement evidencing the named
insured's request shall be mailed or delivered to the address stated
in the policy to all individuals or to all entities designated as
named insureds on the declarations page of the policy.
