Bill Text: IA HF2219 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act providing for the regulation of transportation network companies, and including applicability provisions. (See Cmte. Bill HF 2414)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-03-03 - Withdrawn. H.J. 414. [HF2219 Detail]
Download: Iowa-2015-HF2219-Introduced.html
House File 2219 - Introduced HOUSE FILE BY PETTENGILL A BILL FOR 1 An Act providing for the regulation of transportation network 2 companies, and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5572YH (3) 86 ns/nh PAG LIN 1 1 Section 1. NEW SECTION. 321N.1 Definitions. 1 2 As used in this chapter, unless the context otherwise 1 3 requires: 1 4 1. "Digital network" means an online=enabled application, 1 5 software, internet site, or system offered or utilized by a 1 6 transportation network company that enables transportation 1 7 network company riders to prearrange rides with transportation 1 8 network company drivers. 1 9 2. "Personal vehicle" means a motor vehicle that is used by 1 10 a transportation network company driver and is owned, leased, 1 11 or otherwise authorized for use by the transportation network 1 12 company driver. "Personal vehicle" does not include a taxicab, 1 13 limousine, or other vehicle for hire. 1 14 3. "Prearranged ride" means the provision of transportation 1 15 by a transportation network company driver to a transportation 1 16 network company rider. A prearranged ride begins when a driver 1 17 accepts a ride request from a rider through a digital network 1 18 controlled by a transportation network company, continues while 1 19 the driver transports the requesting rider, and ends when 1 20 the last requesting rider departs from the driver's personal 1 21 vehicle. A prearranged ride does not include transportation 1 22 provided using a taxicab, limousine, or other vehicle for hire. 1 23 4. "Transportation network company" or "company" means a 1 24 corporation, partnership, sole proprietorship, or other entity 1 25 that operates in this state and uses a digital network to 1 26 connect transportation network company riders to transportation 1 27 network company drivers who provide prearranged rides. A 1 28 transportation network company is not deemed to control, 1 29 direct, or manage a transportation network company driver that 1 30 connects to its digital network, or the driver's personal 1 31 vehicle, except as agreed to by the company and the driver 1 32 pursuant to a written contract. 1 33 5. "Transportation network company driver" or "driver" means 1 34 an individual who does all of the following: 1 35 a. Receives connections to potential transportation network 2 1 company riders and other related services from a transportation 2 2 network company in exchange for payment of a fee to the 2 3 transportation network company. 2 4 b. Uses a personal vehicle to offer or provide prearranged 2 5 rides to transportation network company riders upon connection 2 6 through a digital network controlled by a transportation 2 7 network company in return for compensation or payment of a fee. 2 8 6. "Transportation network company rider" or "rider" 2 9 means an individual or group of individuals who use a 2 10 transportation network company's digital network to connect 2 11 with a transportation network company driver to request a 2 12 prearranged ride for the individual or group of individuals, 2 13 and who receive the prearranged ride in the driver's personal 2 14 vehicle between locations chosen by the individual or group of 2 15 individuals. 2 16 Sec. 2. NEW SECTION. 321N.2 Financial responsibility. 2 17 1. A transportation network company driver, or a 2 18 transportation network company on the driver's behalf, shall 2 19 maintain primary automobile insurance that does all of the 2 20 following: 2 21 a. Recognizes that the driver is a transportation network 2 22 company driver or that the driver otherwise uses a motor 2 23 vehicle to transport passengers for compensation. 2 24 b. Covers the driver while the driver is logged on to the 2 25 transportation network company's digital network and while the 2 26 driver is engaged in a prearranged ride. 2 27 c. Covers the driver in the amounts set forth in subsections 2 28 2 and 3. 2 29 2. a. While a participating transportation network company 2 30 driver is logged on to a transportation network company's 2 31 digital network and is available to receive requests for a 2 32 prearranged ride, but is not engaged in a prearranged ride, 2 33 primary automobile insurance maintained pursuant to paragraph 2 34 "c" shall cover the driver in the amount of at least fifty 2 35 thousand dollars because of bodily injury to or death of one 3 1 person in any one accident, the amount of at least one hundred 3 2 thousand dollars because of bodily injury to or death of two 3 3 or more persons in any one accident, and the amount of at 3 4 least twenty=five thousand dollars because of injury to or 3 5 destruction of property of others in any one accident. 3 6 b. The requirements of paragraph "a" shall be in addition to 3 7 the automobile insurance requirements set forth in chapter 516A 3 8 or any other provision of law. 3 9 c. The requirements of paragraph "a" may be satisfied by any 3 10 of the following: 3 11 (1) Insurance maintained by the transportation network 3 12 company driver. 3 13 (2) Insurance maintained by the transportation network 3 14 company. 3 15 (3) A combination of subparagraphs (1) and (2). 3 16 3. a. While a transportation network company driver is 3 17 engaged in a prearranged ride, primary automobile insurance 3 18 maintained pursuant to paragraph "c" shall cover the driver in 3 19 the amount of at least one million dollars because of bodily 3 20 injury to or death of one or more persons and injury to or 3 21 destruction of property of others in any one accident. 3 22 b. The requirements of paragraph "a" shall be in addition to 3 23 the automobile insurance requirements set forth in chapter 516A 3 24 or any other provision of law. 3 25 c. The requirements of paragraph "a" may be satisfied by any 3 26 of the following: 3 27 (1) Insurance maintained by the transportation network 3 28 company driver. 3 29 (2) Insurance maintained by the transportation network 3 30 company. 3 31 (3) A combination of subparagraphs (1) and (2). 3 32 4. If insurance maintained by a transportation network 3 33 company driver under this chapter lapses or does not provide 3 34 coverage in the amounts required by subsections 2 and 3, 3 35 insurance maintained by a transportation network company shall 4 1 provide coverage in the amounts required by subsections 2 and 4 2 3 beginning with the first dollar of a claim, and the company 4 3 shall have a duty to defend the claim. 4 4 5. Coverage under an automobile insurance policy maintained 4 5 by a transportation network company under this chapter 4 6 shall not be dependent on the insurer of a driver's personal 4 7 vehicle first denying a claim, nor shall a personal automobile 4 8 insurance policy be required to first deny a claim. 4 9 6. Insurance maintained under this chapter shall be 4 10 provided by an insurer governed by chapter 515 or 518, or by 4 11 a surplus lines insurer governed by chapter 515I. A surplus 4 12 lines insurer that issues a policy pursuant to this section 4 13 shall be considered an insurance carrier duly authorized to 4 14 transact business in this state for the purposes of chapter 4 15 321A. 4 16 7. Insurance maintained under this chapter shall be deemed 4 17 to satisfy the financial responsibility requirements for a 4 18 motor vehicle under chapter 321A. 4 19 8. A transportation network company driver shall carry 4 20 proof of financial liability coverage, as required by section 4 21 321.20B, in the amounts required by subsections 2 and 3, at 4 22 all times during which the driver uses a motor vehicle in 4 23 connection with the use of a transportation network company's 4 24 digital network. In the event of an accident, the driver 4 25 shall provide proof of financial liability coverage to any 4 26 directly interested party or insurer, and to any investigating 4 27 police officer, upon request and in a format provided for under 4 28 section 321.20B. Upon such a request, the driver shall also 4 29 disclose to any directly interested party or insurer, and 4 30 to any investigating police officer, whether the driver was 4 31 logged on to a company's digital network or was providing a 4 32 prearranged ride at the time of the accident. 4 33 Sec. 3. NEW SECTION. 321N.3 Disclosure requirements. 4 34 A transportation network company shall disclose all of the 4 35 following information to a transportation network company 5 1 driver in writing before the driver may accept a request from a 5 2 rider for a prearranged ride on the company's digital network: 5 3 1. The types, amounts, terms, and limits of automobile 5 4 insurance provided by the company to the driver while the 5 5 driver uses a personal vehicle in connection with the use of 5 6 the company's digital network. 5 7 2. That the driver's own automobile insurance policy, 5 8 depending on the policy's terms, may not provide any coverage 5 9 while the driver is logged on to the company's digital network 5 10 and is available to receive requests for a prearranged ride, or 5 11 while the driver is engaged in a prearranged ride. 5 12 Sec. 4. NEW SECTION. 321N.4 Insurers. 5 13 1. a. Notwithstanding any other provision of law to the 5 14 contrary, an insurer that writes automobile insurance within 5 15 this state may exclude any and all coverage afforded to an 5 16 insured person under a policy issued to the owner or operator 5 17 of a personal vehicle for any injury or loss that occurs while 5 18 the insured is logged on to a transportation network company's 5 19 digital network or while the insured is providing a prearranged 5 20 ride. This right to exclude coverage may apply to any type 5 21 of coverage provided for in the insured's policy, including 5 22 but not limited to liability coverage for bodily injury and 5 23 property damage, personal injury protection coverage, uninsured 5 24 and underinsured motorist coverage, medical payments coverage, 5 25 comprehensive physical damage coverage, and collision physical 5 26 damage coverage. 5 27 b. This chapter shall not be construed to require an 5 28 insurer to provide coverage to an individual while the 5 29 individual is logged on to a company's digital network, is 5 30 engaged in a prearranged ride, or is otherwise transporting 5 31 another individual or group of individuals in a vehicle for 5 32 compensation. 5 33 c. This chapter shall not be construed to preclude an 5 34 insurer from providing coverage for a transportation network 5 35 company driver's personal vehicle, if the insurer chooses to do 6 1 so by contract or endorsement. 6 2 2. a. An insurer that excludes coverage pursuant to 6 3 subsection 1 shall not have a duty to defend or indemnify a 6 4 claim expressly excluded from a policy issued by the insurer. 6 5 This chapter shall not be deemed to invalidate or limit an 6 6 exclusion contained in a policy, including a policy in use or 6 7 approved for use in this state prior to the effective date of 6 8 this Act, that excludes coverage for vehicles used to carry 6 9 individuals or property for compensation or vehicles available 6 10 for hire by the public. 6 11 b. An insurer that defends or indemnifies a claim against an 6 12 insured transportation network company driver that is excluded 6 13 under the terms of the driver's policy shall have a right 6 14 of action for contribution or indemnity against an insurer 6 15 providing automobile insurance to the driver under this chapter 6 16 during the period in which the loss occurred. 6 17 3. In a claims coverage investigation, any involved 6 18 transportation network company and any insurer potentially 6 19 providing coverage pursuant to this chapter shall cooperate to 6 20 facilitate the exchange of relevant information with parties 6 21 directly involved in the claim, and with any insurer of the 6 22 transportation network company driver, where applicable, 6 23 including but not limited to the precise times during which 6 24 the driver logged on and off of the company's digital network 6 25 in the twelve=hour period immediately preceding and in the 6 26 twelve=hour period immediately following the accident that 6 27 resulted in the claim, and shall disclose to one another a 6 28 clear description of any relevant automobile insurance provided 6 29 pursuant to this chapter, including any applicable limits and 6 30 exclusions. 6 31 Sec. 5. APPLICABILITY OF INSURANCE PROVISIONS. The section 6 32 of this Act enacting section 321N.2 shall apply on and after 6 33 the date of approval of the form filings necessary to implement 6 34 section 321N.2 by the commissioner of insurance as required 6 35 under 191 IAC 20.4. 7 1 EXPLANATION 7 2 The inclusion of this explanation does not constitute agreement with 7 3 the explanation's substance by the members of the general assembly. 7 4 This bill provides for the regulation of transportation 7 5 network companies (TNCs). The bill defines "transportation 7 6 network company" as an entity operating in this state that uses 7 7 a digital network to connect TNC riders to TNC drivers who 7 8 provide prearranged rides. The bill provides that a TNC is not 7 9 deemed to control, direct, or manage a TNC driver that connects 7 10 to the TNC's digital network, or the driver's personal vehicle, 7 11 except as agreed to by the TNC and the driver pursuant to a 7 12 written contract. The bill further defines "digital network", 7 13 "personal vehicle", "prearranged ride", "transportation network 7 14 company driver", and "transportation network company rider". 7 15 The bill provides that during the period in which a TNC 7 16 driver is logged on to a TNC's digital network and is available 7 17 to receive requests for a prearranged ride, but is not 7 18 providing a prearranged ride, primary automobile insurance 7 19 shall cover the driver in the amount of at least $50,000 for 7 20 bodily injury to or death of one person in any one accident, 7 21 $100,000 for bodily injury to or death of two or more persons 7 22 in any one accident, and $25,000 for injury to or destruction 7 23 of property of others in any one accident. The bill further 7 24 provides that during the period in which a TNC driver is 7 25 providing a prearranged ride, primary automobile insurance 7 26 shall cover the driver in the amount of at least $1 million for 7 27 bodily injury to or death of one or more persons and injury to 7 28 or destruction of property of others in any one accident. The 7 29 insurance required by the bill may be maintained by the TNC 7 30 driver, the TNC, or both. 7 31 The bill provides that if the insurance maintained by a 7 32 TNC driver lapses or does not provide coverage in the amounts 7 33 required by the bill, insurance maintained by a TNC shall 7 34 provide the coverage beginning with the first dollar of a 7 35 claim, and the TNC shall have a duty to defend the claim. In 8 1 addition, insurance maintained by a TNC shall not be dependent 8 2 on the insurer of a driver's personal vehicle first denying a 8 3 claim. 8 4 The insurance required by the bill shall be provided by an 8 5 insurer governed by Code chapter 515 or 518, or by a surplus 8 6 lines insurer governed by Code chapter 515I. 8 7 The bill requires that a TNC driver shall carry proof of 8 8 financial liability coverage at all times during which the 8 9 driver uses a vehicle in connection with the use of a TNC's 8 10 digital network. In the event of an accident, the driver 8 11 shall provide the proof of financial liability coverage, upon 8 12 request, to any directly interested party or insurer, and to 8 13 any investigating police officer. 8 14 The bill requires a TNC to disclose to a driver in writing 8 15 the types, amounts, terms, and limits of automobile insurance 8 16 provided by the TNC to the driver while the driver uses a 8 17 personal vehicle in connection with the use of the TNC's 8 18 digital network, and the fact that the driver's own automobile 8 19 insurance policy may not provide coverage while the driver 8 20 is logged on to the TNC's digital network or is providing a 8 21 prearranged ride. 8 22 The bill provides that an insurer may exclude coverage 8 23 afforded to an insured person under a policy issued to the 8 24 owner or operator of a personal vehicle for any injury or loss 8 25 that occurs while the insured is logged on to a TNC's digital 8 26 network or while the insured is providing a prearranged ride. 8 27 An insurer that excludes coverage in this way shall not have a 8 28 duty to defend or indemnify a claim so excluded from a policy 8 29 issued by the insurer. An insurer that defends or indemnifies 8 30 a claim against an insured TNC driver that is excluded under 8 31 the terms of the driver's policy shall have a right of action 8 32 for contribution or indemnity against an insurer providing 8 33 automobile insurance to the driver during the period in which 8 34 the loss occurred. 8 35 In addition, the bill provides that in a claims coverage 9 1 investigation, any involved TNC and any insurer potentially 9 2 providing coverage shall cooperate to facilitate the exchange 9 3 of relevant information with parties directly involved in the 9 4 claim. 9 5 The provisions of the bill relating to financial 9 6 responsibility do not apply until the required form filings are 9 7 approved by the commissioner of insurance. LSB 5572YH (3) 86 ns/nh
