Bill Text: HI SB2444 | 2022 | Regular Session | Introduced
Bill Title: Relating To Peer-to-peer Car-sharing Insurance Requirements.
Spectrum: Strong Partisan Bill (Democrat 12-1)
Status: (Engrossed - Dead) 2022-03-10 - Referred to TRN, CPC, FIN, referral sheet 24 [SB2444 Detail]
Download: Hawaii-2022-SB2444-Introduced.html
THE SENATE |
S.B. NO. |
2444 |
THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PEER-TO-PEER CAR-SHARING INSURANCE REQUIREMENTS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that peer-to-peer car-sharing programs, not rental car businesses, do not have established requirements for insurance coverage. These agreement-based car-sharing programs must ensure that cars in their programs are properly insured specifically for peer-to-peer car-sharing purposes.
The legislature further finds that it is in the public's interest to establish requirements for peer-to-peer car-sharing programs regarding mandatory insurance coverage.
Accordingly, the purpose of this Act is to establish mandatory insurance terms for peer-to-peer car-sharing programs.
SECTION 2. Chapter 431, article 10C, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part
. PEER-TO-PEER CAR-SHARING
INSURANCE
§ -1
Definitions. As used in this chapter:
"Car-sharing
delivery period" means the period of time during which a shared car is being
delivered to the location of the car-sharing start time, if applicable, as documented
by the governing car-sharing program agreement.
"Car-sharing
period" means the period of time that commences with the car-sharing delivery
period or, if there is no delivery period, that commences with the car-sharing start
time and, in either case, ends at the car-sharing termination time.
"Car-sharing
program agreement" means the terms and conditions applicable to a shared car
owner, a shared car driver, and a peer-to-peer car-sharing platform, if applicable,
that govern the use of a shared car through a peer-to-peer car-sharing program.
"Car-sharing program agreement" does not include a rental agreement as
defined in section 437D-3.
"Car-sharing
start time" means the time the shared car driver obtains operation, use, or
control of a shared car through a peer-to-peer car-sharing program.
"Car-sharing
termination time" means the earliest of the following events:
(1) The expiration of the agreed
upon period of time established for the use of a shared car according to the terms
of the car-sharing program agreement if the shared car is delivered to the location
agreed upon in the car-sharing program agreement;
(2) When the shared car is returned to a location as
alternatively agreed upon by the shared car owner and shared car driver as communicated
through a peer-to-peer car-sharing program;
(3) When a shared car is returned to the location agreed
upon in the car-sharing program agreement or alternatively agreed upon by the shared
car owner and the shared car driver, as communicated through a peer-to-peer car-sharing
program, before the expiration of the period of time established for the use of
a shared car according to the terms of the car-sharing program agreement, and the
shared car driver notifies the peer-to-peer car-sharing program of the location
of the shared car;
(4) When a shared car, during the car-sharing period,
cannot safely or legally be operated and the shared car driver notifies the peer-to-peer
car-sharing program that the shared car is inoperable and identifies the location
of the shared car;
(5) When the shared car driver receives notice of a
safety recall affecting the shared car and the shared car driver returns the shared
car to the location agreed upon in the car-sharing agreement, or alternatively agreed
upon by the shared car owner and the shared car driver, and the shared car driver
notifies the peer-to-peer car-sharing program of the location of the shared car;
or
(6) When the shared car owner or the shared car owner's
authorized designee takes possession and control of the shared car.
"Peer-to-peer
car-sharing" means the operation, use, or control of a motor vehicle by an
individual other than the motor vehicle's owner through a peer-to-peer car-sharing
program. For the purposes of assessing a vehicle surcharge tax, "peer-to-peer
car-sharing" shall not mean the business of providing rental motor vehicles
to the public as that phrase is used in section 251-3.
"Peer-to-peer
car-sharing program" means:
(1) Any person who enables a shared car driver to identify,
reserve, or use a shared car owned by a shared car owner; or
(2) Any person who enables a shared car owner to describe,
list, or make available a shared car for identification, reservation, or use by
a shared car driver.
"Peer-to-peer
car-sharing program" does not include:
(1) A "transportation network company" as
defined in section 431:10C-701;
(2) A "car-sharing organization" as defined
in section 251-1;
(3) Any person registered and acting as a travel agency
pursuant to chapter 468L; or
(4) Any person registered and acting as an activity
desk pursuant to chapter 468M.
"Peer-to-peer
car-sharing platform" means any person or business that owns or operates a
peer-to-peer car-sharing program.
"Shared
car" means a motor vehicle that is registered pursuant to chapter 286 and is
not owned, controlled, operated, maintained, or managed by or registered, directly
or indirectly through an affiliate, to the peer-to-peer car-sharing program and
is available for sharing through a peer-to-peer car-sharing program. "Shared car" does not include a rental
motor vehicle or vehicle as those terms are defined in section 437D-3.
"Shared
car driver" means an individual who has been authorized to drive the shared
car by the shared car owner under a car-sharing program agreement. "Shared car driver" does not include
lessee as defined in section 437D-3.
"Shared
car owner" means the registered owner of a shared car. "Shared car owner" does not include lessor
as defined in section 437D-3.
§ -2 Insurance coverage during car-sharing period. (a) A peer-to-peer car-sharing program shall ensure
that during each car-sharing period, the shared car shall be insured under a motor
vehicle insurance policy that provides primary insurance coverage for each shared
car available and used through a peer-to-peer car-sharing program in amounts no
less than the minimum amounts required under section 431:10C‑301 and does
not exclude use of a shared car by a shared car driver.
(b)
If insurance maintained by a shared car owner
or shared car driver in accordance with subsection (a) has lapsed, contains an exclusion
for peer-to-peer car-sharing, or does not provide the required coverage, insurance
maintained by a peer-to-peer car-sharing program shall provide the coverage required
by subsection (a) beginning with the first dollar of a claim and shall have the
duty to defend such claim.
(c)
Coverage under a motor vehicle insurance
policy maintained by the peer-to-peer car-sharing program shall not be dependent
on another motor vehicle insurer first denying a claim.
§ -3
Exclusions in motor vehicle insurance policies.
(a) Notwithstanding section -2, an
authorized insurer that writes motor vehicle insurance in the State may exclude
any and all coverage and the duty to defend or indemnify any claim afforded under
a shared car owner's motor vehicle insurance policy during the car-sharing period,
including:
(1) Liability coverage for bodily injury and property
damage;
(2) Personal injury protection coverage as set forth
in section 431:10C-304;
(3) Uninsured and underinsured motorist coverage;
(4) Medical payments coverage;
(5) Comprehensive physical damage coverage; and
(6) Collision physical damage coverage.
(b) Except as required under section -2,
nothing in this chapter shall invalidate or limit an exclusion contained in a motor
vehicle insurance policy, including any insurance policy in use or approved for
use that excludes coverage for motor vehicles made available for rent, sharing,
hire, or for any business use.
§ -4 Recordkeeping;
use of vehicle in car-sharing. A peer-to-peer
car-sharing program shall collect and verify records pertaining to the use of a
shared car for each car-sharing program agreement, including:
(1) Dates and times of the car-sharing start time and
the car-sharing termination time in the car-sharing program agreement;
(2) Dates and times of the car-sharing start time and
car-sharing termination time;
(3) Itemized descriptions and amounts of all fees and
costs charged to the shared car driver;
(4) Itemized descriptions and amounts of all fees and
costs paid by the shared car driver;
(5) Itemized descriptions and amounts of all fees and
costs paid to the shared car owner;
(6) The name and contact information of the shared
car owner and the shared car driver; and
(7) The insurance policy number, effective date, coverage,
and coverage amounts of each insurance policy that identifies the peer-to-peer car-sharing
program, shared car owner, or shared car driver as the insured.
The
peer-to-peer car-sharing program shall retain the records for a time period of no
less than six years. Upon request, the peer-to-peer
car-sharing program shall provide the information required by this section, and
any information relating to the peer-to-peer car-sharing agreement in its possession
and control, to the shared car owner, the shared car owner's insurer, the shared
car driver, the shared car driver's insurer, persons who have sustained injury or
property damage involving a shared car, and police and other governmental entities
to facilitate accident or claim coverage investigation.
§ -5
Right of recovery from peer-to-peer car-sharing
program or its motor vehicle insurer. (a)
A motor vehicle insurer that defends or indemnifies
a liability claim against a shared car owner or a shared car driver that is excluded
under the terms of the shared car owner's or shared car driver's policy shall have
a right to seek to recover from the peer-to-peer car-sharing program or its motor
vehicle insurer if the liability claim is made against the shared car owner or the
shared car driver for injury or damage that occurs during the car-sharing period.
(b)
A motor vehicle insurer that pays personal
injury protection benefits for injury sustained by an occupant of, or by a pedestrian
when struck by, a shared car when the obligation to pay personal injury protection
benefits is excluded under the shared car owner's or shared car driver's policy
shall have the right to seek to recover from the peer-to-peer car-sharing program
or its motor vehicle insurer if the injury occurs during the car-sharing period.
(c)
A motor vehicle insurer that pays uninsured
motorist benefits or underinsured motorist benefits for injury sustained by an occupant
of a shared car when the obligation to pay uninsured motorist benefits or underinsured
motorist benefits is excluded under the shared car owner's or shared car driver's
policy shall have the right to seek to recover from the peer-to-peer car-sharing
program or its motor vehicle insurer if the injury occurs during the car-sharing
period.
(d)
A motor vehicle insurer that pays a shared-car
owner for loss or damage to a shared car that is excluded under the comprehensive
physical damage coverage or collision physical damage coverage of the shared car
owner's or shared car driver's policy shall have the right to seek to recover from
the peer-to-peer car-sharing program or its motor vehicle insurer if the loss or
damage to the shared car occurs during the car-sharing period.
§ -6
Insurable interest. (a) Notwithstanding any other law or rule to the contrary,
a peer-to-peer car-sharing program shall have an insurable interest in a shared
car during the car-sharing period.
(b)
In addition to the insurance coverage mandated
by section -2, a peer-to-peer car-sharing program may own and
maintain as the named insured one or more policies of motor vehicle insurance that
provides coverage for:
(1) Liabilities assumed by the peer-to-peer car-sharing
program under a peer-to-peer car-sharing program agreement;
(2) Any liability of the shared car owner; or
(3) Damage or loss to the shared car or any liability
of the shared car driver.
§ -7 Required
disclosures and notices. For each shared car participating in a car-sharing
program agreement, a peer-to-peer car-sharing program shall:
(1) Provide, prior to the execution of a car-sharing
program agreement, the shared car owner and shared car driver with the terms and
conditions of the car-sharing program agreement;
(2) Disclose to the shared car driver, prior to the
execution of a car-sharing program agreement, all costs or fees that are charged
to the shared car driver under the car-sharing program agreement, including all
costs or fees for mandatory insurance coverage charged by the peer-to-peer car-sharing
program;
(3) Disclose to the shared car owner, prior to the
execution of a car-sharing program agreement, all costs or fees that are charged
to the shared car owner under the car-sharing program agreement, including fees
or costs for mandatory insurance coverage charged by the peer-to-peer car-sharing
program;
(4) Provide a twenty-four hour emergency telephone
number for a person capable of facilitating roadside assistance for the shared car
driver;
(5) Disclose any right of the peer-to-peer car-sharing
program to seek indemnification from the shared car owner or the shared car driver
for economic loss sustained by the peer-to-peer car-sharing program caused by a
breach of the car-sharing program agreement; provided that the peer-to-peer car-sharing
program shall require the shared car owner and the shared car driver to specifically
and separately acknowledge notice of the disclosure prior to execution of a car-sharing
program agreement;
(6) Disclose that a motor vehicle insurance policy
issued to the shared car owner for the shared car or to the shared car driver may
not provide a defense or indemnification for any claim asserted by the peer-to-peer
car-sharing program; provided that the peer-to-peer car-sharing program shall require
the shared car owner and the shared car driver to specifically and separately acknowledge
notice of the disclosure prior to execution of a car-sharing program agreement;
(7) Disclose that the peer-to-peer car-sharing program's
insurance coverage on the shared car owner and the shared car driver is in effect
only during each car-sharing period and that the shared car may not have insurance
coverage for use of the shared car by the shared car driver after the car-sharing
termination time; provided that the peer-to-peer car-sharing program shall require
the shared car owner and the shared car driver to specifically and separately acknowledge
notice of the disclosure prior to the execution of a car-sharing program agreement;
(8) Disclose any insurance or protection package costs
that are charged to the shared car owner or the shared car driver; provided that
the peer-to-peer car-sharing program shall require the shared car owner and the
shared car driver to specifically and separately acknowledge notice of the disclosure
prior to the execution of a car-sharing program agreement;
(9) Disclose to the shared car driver any conditions
in which the shared car driver is required to maintain a motor vehicle insurance
policy as the primary coverage for the shared car; and
(10) Disclose that a shared car owner shall be permitted
to obtain insurance that provides coverage for loss of use of a shared car."
SECTION 3. This Act shall take effect on July 1, 2023.
INTRODUCED BY: |
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Report Title:
Peer-to-Peer Car-Sharing; Insurance Requirements; Insurance Requirements
Description:
Establishes peer-to-peer car-sharing insurance requirements. Effective July 1, 2023.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.