Bill Text: CT HB05523 | 2016 | General Assembly | Comm Sub

Connecticut House Bill 5523 (Prior Session Legislation)

Bill Title: An Act Concerning Insurance Requirements For Transportation Network Companies.

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2016-04-30 - Senate Calendar Number 577 [HB05523 Detail]

Download: Connecticut-2016-HB05523-Comm_Sub.html

General Assembly		*Substitute Bill No. 5523*
*February Session, 2016*		_____HB05523INS___031716____

AN ACT CONCERNING INSURANCE REQUIREMENTS FOR TRANSPORTATION NETWORK COMPANIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2016) (a) As used in this section:

(1) "Transportation network company" means a company, including a corporation, a partnership, a trust, an association, a sole proprietorship or a similar organization, that uses a digital network to connect transportation network company riders with transportation network company drivers who provide prearranged rides;

(2) "Transportation network company driver" or "driver" means an individual who is not an employee of a transportation network company and who (A) receives connections, in exchange for payment of a fee to such company, to potential transportation network company riders through the transportation network company's digital network, and (B) uses a personal vehicle to offer or provide prearranged rides to transportation network company riders upon connecting with such riders through the transportation network company's digital network, in exchange for compensation or a fee;

(3) "Transportation network company rider" or "rider" means an individual who uses a digital network to connect with a transportation network company driver to provide a prearranged ride to the rider between points chosen by the rider;

(4) "Digital network" means any online-enabled technology application service, Internet web site or system that is used by a transportation network company and enables prearranged rides with transportation network company drivers;

(5) "Prearranged ride" means the transport by a transportation network company driver of a transportation network company rider (A) beginning when the driver accepts, through the transportation network company's digital network, the rider's request for a ride, (B) continuing while the driver transports the rider, and (C) ending when the last requesting rider departs from the driver's personal vehicle. "Prearranged ride" does not include the transport of an individual, which transport has not been arranged with a transportation network company driver through the use of a transportation network company's digital network; and

(6) "Personal vehicle" means a private passenger motor vehicle that is (A) owned, leased or otherwise authorized for the provision of prearranged rides by a transportation network company driver, and (B) used by such driver to provide a prearranged ride.

(b) (1) Not later than July 1, 2016, a transportation network company driver or a transportation network company on such driver's behalf shall procure and maintain a motor vehicle insurance policy that recognizes that the driver is a transportation network company driver and provides coverage for such driver as follows:

(A) For the period during which the driver is logged on to the transportation network company's digital network and is available to receive requests for prearranged rides but is not engaged in the provision of a prearranged ride: (i) Automobile liability insurance coverage of at least (I) fifty thousand dollars for damages by reason of bodily injury to, or the death of, any one person, (II) one hundred thousand dollars for damages by reason of bodily injury or death per accident, and (III) twenty-five thousand dollars for property damage; and (ii) uninsured and underinsured motorist coverage in accordance with the provisions of section 38a-336 of the general statutes; and

(B) For the period during which the driver is engaged in the provision of a prearranged ride: (i) Automobile liability insurance coverage of at least one million dollars for damages by reason of bodily injury, death or property damage; and (ii) uninsured and underinsured motorist coverage in accordance with the provisions of section 38a-336 of the general statutes.

(2) (A) The coverage required under subdivision (1) of this subsection may be satisfied by an automobile insurance policy maintained by a transportation network company driver or the transportation network company or a combination of both. Nothing in this section shall be construed to (i) require an insurance company that issues automobile insurance policies in this state to issue automobile insurance policies that provide the coverage specified under subdivision (1) of this subsection, or (ii) preclude an insurance company from providing primary or excess coverage by contract or endorsement for a transportation network company driver's personal vehicle.

(B) If an automobile insurance policy maintained by a transportation network company driver has lapsed or does not provide the coverage required under subdivision (1) of this subsection, the transportation network company's automobile insurance policy shall provide such coverage, beginning with the first dollar of a claim, and the insurance company issuing such policy shall have the duty to defend a claim that arises while such driver is logged on to the transportation network company's digital network to receive requests for prearranged rides or is engaged in the provision of a prearranged ride.

(C) Coverage under an automobile insurance policy maintained by a transportation network company shall not be dependent on another insurance company first denying a claim, nor shall such other insurance company be required to first deny a claim.

(3) A transportation network company may procure the coverage required under subdivision (1) of this subsection from (A) an insurance company authorized to do business in this state, or (B) a surplus lines insurer that has at least an A minus credit rating by A.M. Best or an A or similar credit rating by another rating agency approved by the Insurance Commissioner. Any such insurance company or surplus lines insurer shall comply with the provisions of subsection (a) of section 38a-318a of the general statutes.

(c) (1) A transportation network company driver shall carry proof of insurance satisfying the coverage required under subdivision (1) of subsection (b) of this section at all times during such driver's use of a personal vehicle while logged on to a transportation network company's digital network to receive requests for prearranged rides or engaged in the provision of a prearranged ride. The transportation network company shall ensure it provides such proof of insurance to all of its drivers to whom such transportation network company is providing such coverage.

(2) In the event of an accident, a transportation network company driver shall provide such proof of insurance coverage to the directly interested parties, insurance companies and investigating police officers. A transportation network company driver shall disclose, upon request, to directly interested parties, insurance companies and investigating police officers whether such driver was logged on to the transportation network company's digital network or was engaged in the provision of a prearranged ride at the time of the accident.

(3) In any claims investigation, a transportation network company shall immediately provide, upon request from a directly involved party or the transportation network company driver's insurance company, the precise times such driver was logged on and logged off the transportation network company's digital network in the twelve-hour periods immediately preceding and immediately following the accident. An insurance company providing any coverage required under subdivision (1) of subsection (b) of this section shall disclose, upon request by any other insurance company providing any coverage required under subdivision (1) of subsection (b) of this section, the applicable coverages, exclusions and limits under the automobile insurance policy issued to satisfy the coverage requirements under said subdivision.

(4) For any claim covered under the collision or comprehensive coverage of a transportation network company's motor vehicle insurance policy, the insurance company shall make payment on such claim directly to the business repairing the motor vehicle or jointly, if applicable, to the owner of the motor vehicle and the primary lienholder of such vehicle.

(d) Notwithstanding the provisions of sections 14-112, 38a-334, 38a-335 and 38a-336 of the general statutes, an insurance company that offers automobile insurance coverage in this state may offer automobile insurance policies to individuals that exclude any or all coverage afforded under such policies for any loss or injury that occurs during the period an insured is logged on to a transportation network company's digital network and available to receive requests for prearranged rides or engaged in the provision of a prearranged ride. Such exclusions may include, but are not limited to, (1) liability coverage for bodily injury, death or property damage, (2) personal injury protection coverage, (3) uninsured and underinsured motorist coverage, (4) medical payments coverage, (5) collision physical damage coverage, or (6) comprehensive physical damage coverage. Nothing in this subsection shall be construed to require an insurance company that clearly and conspicuously discloses such exclusions to use any particular policy language or reference to this subsection to exclude any or all coverage pursuant to this subsection.

(e) (1) An insurance company that excludes coverage pursuant to subsection (d) of this section shall have no duty to defend or indemnify any claim against a transportation network company driver for which coverage is expressly excluded in such driver's automobile insurance policy. If an insurance company defends or indemnifies a claim against a transportation network company driver for which coverage is expressly excluded in such driver's automobile insurance policy, the insurance company shall have a right of subrogation against other insurance companies that provide automobile insurance coverage to such driver to satisfy the requirements of subdivision (1) of subsection (b) of this section.

(2) Nothing in this section shall be construed to invalidate or limit an exclusion contained in an automobile insurance policy, including any such policy in use or approved for use in this state prior to July 1, 2016, that excludes coverage for vehicles used to transport property or passengers for a fee or available for hire by the public.

(3) In the event of a claim against a transportation network company driver in which there is disagreement between such driver's insurance company and the transportation network company's insurance company as to which insurance company has the duty to defend, the insurance company issuing the transportation network company's automobile insurance policy shall have the duty to defend such claim.

(f) Prior to initially permitting a transportation network company driver to accept a rider request for a prearranged ride through the transportation network company's digital network, a transportation network company shall disclose, in writing, to such driver the following:

(1) The insurance coverage, including the types of coverage and the limits for each type of coverage, that the transportation network company provides during the period such driver is using his or her personal vehicle while logged on to the transportation network company's digital network and available to receive requests for prearranged rides or engaged in the provision of a prearranged ride;

(2) A statement that such driver's automobile insurance policy might not provide coverage while such driver is logged on to the transportation network company's digital network and available to receive requests for prearranged rides or engaged in the provision of a prearranged ride; and

(3) A statement that if such driver's personal vehicle has a lien on it, the use of such vehicle for such purposes without physical damage coverage may violate the terms of the contract with the lienholder.

Sec. 2. Section 13b-95 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

The term "taxicab" includes any motor vehicle operated upon any street or highway or on call or demand accepting or soliciting passengers indiscriminately for transportation for hire between such points along streets or highways as may be directed by the passenger or passengers being transported, provided nothing in this chapter shall be construed to include, as a taxicab, a motor bus, as defined in section 14-1, [or] a motor vehicle in livery service when such motor vehicle is hired for a specific trip or trips and is subject to the direction of the person hiring the same, or a personal vehicle operated by a transportation network company driver, as both terms are defined in section 1 of this act.

Sec. 3. Section 13b-101 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):

The term "motor vehicle in livery service" includes every motor vehicle used by any person, association, limited liability company or corporation which represents itself to be in the business of transporting passengers for hire, except (1) any motor bus and any taxicab operated under a certificate of public convenience and necessity issued by the Department of Transportation, (2) any school bus, as defined in section 14-275, or student transportation vehicle, as defined in section 14-212, when used for the transportation of children under the age of twenty-one years, (3) any school bus, as defined in section 14-275, when used for the transportation of passengers (A) by virtue of a contract with any public or private institution of higher education, (B) pursuant to a contract for service to a special event held at a location or facility which is not open for business on a daily basis throughout the year, not to exceed a period of ten days, or (C) pursuant to a contract with a municipality for which the carrier provides school transportation service, (4) any motor vehicle operated by or through a community-based regional transportation system for the elderly established pursuant to section 55 of public act 05-280, [and] (5) any motor vehicle operated by or through a community-based regional transportation system for the visually impaired, and (6) any personal vehicle operated by a transportation network company driver, as both terms are defined in section 1 of this act.


This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2016	New section
Sec. 2	July 1, 2016	13b-95
Sec. 3	July 1, 2016	13b-101