Bill Text: IA SSB1228 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to the minimum insurance requirements for transportation network companies and participating drivers, and including effective date provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-03-03 - 11:00AM; RM 22 Commerce. [SSB1228 Detail]
Download: Iowa-2015-SSB1228-Introduced.html
Senate
Study
Bill
1228
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
PETERSEN)
A
BILL
FOR
An
Act
relating
to
the
minimum
insurance
requirements
for
1
transportation
network
companies
and
participating
drivers,
2
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2009XC
(2)
86
ns/nh
S.F.
_____
Section
1.
NEW
SECTION
.
325C.1
Short
title.
1
This
chapter
shall
be
known
and
may
be
cited
as
the
“Iowa
2
Transportation
Network
Company
Insurance
Act”
.
3
Sec.
2.
NEW
SECTION
.
325C.2
Scope.
4
Notwithstanding
any
other
provision
of
law
to
the
contrary,
5
this
chapter
shall
determine
the
requirements
of
insurance
6
policies
issued
to
transportation
network
companies
and
7
participating
drivers,
as
applicable,
to
provide
coverage
for
8
the
operation
of
a
motor
vehicle
in
connection
with
the
use
of
9
a
transportation
network
company’s
online-enabled
application
10
or
platform.
11
Sec.
3.
NEW
SECTION
.
325C.3
Definitions.
12
As
used
in
this
chapter,
unless
the
context
otherwise
13
requires:
14
1.
“App-off
stage”
means
the
period
of
time
a
participating
15
driver
is
operating
a
motor
vehicle
for
personal,
noncommercial
16
purposes.
“App-off
stage”
does
not
include
any
period
17
of
time
in
the
app-on
stage,
the
engaged
stage,
or
the
18
passenger-on-board
stage.
19
2.
“App-on
stage”
means
the
period
of
time
a
participating
20
driver
is
logged
on
to
a
transportation
network
company’s
21
online-enabled
application
or
platform
and
available
to
22
accept
ride
requests.
“App-on
stage”
does
not
include
any
23
period
of
time
in
the
app-off
stage,
the
engaged
stage,
or
the
24
passenger-on-board
stage.
25
3.
“Engaged
stage”
means
the
period
of
time
from
the
26
moment
a
participating
driver
accepts
a
ride
request
on
a
27
transportation
network
company’s
online-enabled
application
or
28
platform
until
the
moment
the
participating
driver
completes
29
the
transaction
on
the
company’s
online-enabled
application
or
30
platform,
or
until
the
moment
the
ride
is
complete,
whichever
31
is
later.
“Engaged
stage”
does
not
include
any
period
of
time
32
in
the
app-off
stage
or
the
app-on
stage.
33
4.
“Participating
driver”
or
“driver”
means
a
person
who
34
operates
a
motor
vehicle
in
connection
with
the
use
of
a
35
-1-
LSB
2009XC
(2)
86
ns/nh
1/
10
S.F.
_____
transportation
network
company’s
online-enabled
application
1
or
platform
to
communicate
with,
offer
transportation
to,
2
or
provide
transportation
for
a
passenger
or
a
potential
3
passenger.
4
5.
“Passenger-on-board
stage”
means
the
period
of
time
a
5
passenger
is
inside
a
motor
vehicle
operated
by
a
participating
6
driver
as
a
result
of
the
participating
driver’s
use
of
a
7
transportation
network
company’s
online-enabled
application
8
or
platform.
“Passenger-on-board
stage”
does
not
include
any
9
period
of
time
in
the
app-off
stage
or
the
app-on
stage.
10
6.
“Transportation
network
company”
or
“company”
means
11
a
person
operating
in
this
state
that
provides
prearranged
12
transportation
services
for
compensation
through
an
13
online-enabled
application
or
platform
that
connects
passengers
14
or
potential
passengers
with
participating
drivers.
15
7.
“Transportation
network
company
insurance”
or
“insurance”
16
means
a
motor
vehicle
liability
policy
that
explicitly
covers
17
injury,
damage,
and
loss
arising
from
a
participating
driver’s
18
operation
of
a
motor
vehicle
in
connection
with
the
use
of
a
19
transportation
network
company’s
online-enabled
application
or
20
platform.
21
Sec.
4.
NEW
SECTION
.
325C.4
Disclosure
requirements.
22
1.
A
transportation
network
company
shall
disclose
all
of
23
the
following
in
writing
to
participating
drivers:
24
a.
The
amounts
of
coverage
and
the
limits
of
liability
25
provided
to
the
participating
driver
by
the
transportation
26
network
company’s
insurance
while
the
driver
operates
a
motor
27
vehicle
in
connection
with
the
use
of
the
transportation
28
network
company’s
online-enabled
application
or
platform.
29
b.
The
fact
that
the
participating
driver’s
motor
vehicle
30
liability
policy
may
not
provide
the
coverage
required
by
this
31
chapter
to
the
driver
while
the
driver
operates
a
motor
vehicle
32
in
connection
with
the
use
of
the
transportation
network
33
company’s
online-enabled
application
or
platform.
34
2.
Within
thirty
days
of
the
date
a
participating
35
-2-
LSB
2009XC
(2)
86
ns/nh
2/
10
S.F.
_____
driver
first
enters
the
app-on
stage
in
connection
with
a
1
transportation
network
company’s
online-enabled
application
or
2
platform,
the
company
shall
notify
the
insurer
providing
the
3
driver’s
motor
vehicle
liability
policy
of
the
driver’s
use
of
4
the
company’s
online-enabled
application
or
platform
unless
the
5
insurer
is
providing
transportation
network
company
insurance
6
to
the
driver.
7
Sec.
5.
NEW
SECTION
.
325C.5
Insurance
requirements.
8
1.
A
transportation
network
company
and
a
participating
9
driver
shall
maintain
transportation
network
company
insurance
10
coverage
in
all
of
the
following
amounts
during
the
app-on
11
stage,
the
engaged
stage,
and
the
passenger-on-board
stage:
12
a.
One
million
dollars
per
accident
for
death,
bodily
13
injury,
and
property
damage.
14
b.
For
uninsured,
underinsured,
or
hit-and-run
motor
vehicle
15
coverage,
one
million
dollars
per
accident
covering
the
driver
16
and
all
passengers.
17
c.
For
medical
payments
coverage,
an
amount
equal
to
or
18
greater
than
the
amount
of
medical
payments
coverage
provided
19
by
the
motor
vehicle
liability
policy
of
the
owner
of
the
motor
20
vehicle
while
the
vehicle
is
operated
during
the
app-off
stage.
21
d.
For
collision
and
comprehensive
coverage,
an
amount
equal
22
to
or
greater
than
the
amount
of
collision
and
comprehensive
23
coverage
provided
by
the
motor
vehicle
liability
policy
of
the
24
owner
of
the
motor
vehicle
while
the
vehicle
is
operated
during
25
the
app-off
stage.
26
2.
a.
The
requirements
of
subsection
1
may
be
satisfied
by
27
any
of
the
following:
28
(1)
Transportation
network
company
insurance
maintained
by
29
a
participating
driver.
30
(2)
Transportation
network
company
insurance
maintained
by
31
a
transportation
network
company.
32
(3)
A
combination
of
subparagraphs
(1)
and
(2).
33
b.
A
transportation
network
company
shall
only
satisfy
34
the
requirements
of
subsection
1
pursuant
to
paragraph
“a”
,
35
-3-
LSB
2009XC
(2)
86
ns/nh
3/
10
S.F.
_____
subparagraph
(1)
or
(3)
of
this
subsection,
if
the
company
1
verifies
that
the
motor
vehicle
liability
policy
maintained
by
2
the
driver
is
explicitly
written
to
cover
injury,
damage,
and
3
loss
arising
from
the
driver’s
operation
of
a
motor
vehicle
in
4
connection
with
the
use
of
a
transportation
network
company’s
5
online-enabled
application
or
platform.
6
3.
a.
An
insurer
providing
transportation
network
company
7
insurance
pursuant
to
this
section
shall
have
the
duty
to
8
defend
and
indemnify
the
insured
for
injury,
damage,
and
9
loss
arising
from
the
driver’s
operation
of
a
motor
vehicle
10
in
connection
with
the
use
of
the
company’s
online-enabled
11
application
or
platform.
No
other
insurer
shall
have
the
duty
12
to
defend
and
indemnify
the
insured
for
injury,
damage,
and
13
loss
arising
from
the
driver’s
operation
of
a
motor
vehicle
14
in
connection
with
the
use
of
the
company’s
online-enabled
15
application
or
platform.
16
b.
Transportation
network
company
insurance
required
by
this
17
section
shall
not
be
conditional
on
any
other
insurer
first
18
denying
a
claim,
or
a
claim
first
being
denied
pursuant
to
any
19
other
policy.
20
4.
Both
of
the
following
shall
apply
to
insurance
coverage
21
during
the
app-on
stage:
22
a.
Where
a
participating
driver’s
transportation
network
23
company
insurance
lapses,
is
canceled,
fails
to
provide
24
coverage,
denies
a
claim,
or
ceases
to
exist
for
any
reason,
25
the
transportation
network
company
insurance
policy
of
the
26
transportation
network
company
shall
provide
the
coverage
27
required
by
this
section
beginning
with
the
first
dollar
of
a
28
claim.
29
b.
A
transportation
network
company
shall
maintain
insurance
30
providing
coverage
to
the
company,
a
participating
driver,
a
31
passenger,
and
the
general
public
in
the
amount
of
five
hundred
32
thousand
dollars
per
accident
in
excess
of
the
insurance
33
required
by
subsection
1
for
accidents
arising
from
the
34
driver’s
operation
of
a
motor
vehicle
in
connection
with
the
35
-4-
LSB
2009XC
(2)
86
ns/nh
4/
10
S.F.
_____
use
of
the
company’s
online-enabled
application
or
platform.
1
Sec.
6.
NEW
SECTION
.
325C.6
Limitation
on
liability.
2
This
chapter
shall
not
limit
the
liability
of
a
3
transportation
network
company
arising
from
an
accident
4
involving
a
participating
driver’s
operation
of
a
motor
vehicle
5
in
connection
with
the
use
of
the
company’s
online-enabled
6
application
or
platform
in
an
action
against
the
company
for
an
7
amount
greater
than
the
amount
of
coverage
required
by
section
8
325C.5.
9
Sec.
7.
NEW
SECTION
.
325C.7
Insurance
limitations.
10
1.
All
of
the
following
apply
during
the
app-on
stage,
the
11
engaged
stage,
and
the
passenger-on-board
stage:
12
a.
The
participating
driver’s
or
the
motor
vehicle
owner’s
13
insurance
policy
shall
not
provide
coverage
to
the
driver,
the
14
vehicle
owner,
or
a
third
party,
unless
the
policy
explicitly
15
provides
for
coverage
during
the
period
of
time
this
subsection
16
is
applicable,
with
or
without
a
separate
premium,
or
the
17
policy
contains
an
amendment
or
endorsement
that
explicitly
18
provides
for
coverage
during
the
period
of
time
this
subsection
19
is
applicable,
and
a
separate
premium
is
charged.
20
b.
The
insurer
of
the
participating
driver
or
the
motor
21
vehicle
owner
shall
not
have
the
duty
to
defend
or
indemnify
22
claims
arising
from
the
driver’s
operation
of
a
motor
vehicle
23
in
connection
with
the
use
of
a
transportation
network
24
company’s
online-enabled
application
or
platform,
unless
the
25
policy
explicitly
provides
for
coverage
during
the
period
of
26
time
this
subsection
is
applicable,
with
or
without
a
separate
27
premium,
or
the
policy
contains
an
amendment
or
endorsement
28
that
explicitly
provides
for
coverage
during
the
period
of
29
time
this
subsection
is
applicable,
and
a
separate
premium
is
30
charged.
31
2.
Notwithstanding
any
provision
to
the
contrary,
an
32
insurer
may
offer
an
insurance
policy,
or
an
amendment
or
33
endorsement
to
an
existing
policy,
that
covers
the
operation
34
of
a
private
passenger
vehicle,
station
wagon
type
vehicle,
35
-5-
LSB
2009XC
(2)
86
ns/nh
5/
10
S.F.
_____
sport
utility
vehicle,
or
a
similar
type
of
vehicle,
with
a
1
passenger
capacity
of
eight
persons
or
less,
including
the
2
driver,
in
connection
with
the
use
of
a
transportation
network
3
company’s
online-enabled
application
or
platform
only
where
the
4
policy
explicitly
provides
for
coverage
during
the
period
of
5
time
subsection
1
is
applicable,
with
or
without
a
separate
6
premium,
or
the
policy
contains
an
amendment
or
endorsement
7
that
explicitly
provides
for
coverage
during
the
period
of
time
8
subsection
1
is
applicable,
and
a
separate
premium
is
charged.
9
Sec.
8.
NEW
SECTION
.
325C.8
Other
requirements.
10
1.
During
the
investigation
of
an
insurance
claim,
11
a
transportation
network
company
or
the
insurer
of
a
12
transportation
network
company
shall
do
all
of
the
following:
13
a.
Cooperate
with
the
other
insurers
involved
in
the
14
investigation
to
facilitate
the
exchange
of
information,
15
including
but
not
limited
to
the
dates
and
times
during
which
16
an
accident
occurred
involving
a
participating
driver,
and
the
17
times
during
which
the
participating
driver
was
logged
on
to
18
the
transportation
network
company’s
online-enabled
application
19
or
platform.
20
b.
Provide
information
requested
by
another
insurer
involved
21
in
the
investigation
within
fifteen
days
of
a
written
request
22
from
the
insurer
to
the
company
or
the
company’s
insurer.
23
2.
All
records,
including
electronic
records,
relating
to
24
the
period
of
time
a
participating
driver
was
logged
on
as
25
active
or
logged
off
as
inactive
on
a
transportation
network
26
company’s
online-enabled
application
or
platform,
and
any
27
other
data
or
reports
kept
by
a
transportation
network
company
28
relating
to
a
motor
vehicle
accident
must
be
maintained
by
the
29
company
for
at
least
five
years
after
the
date
the
accident
is
30
reported
to
the
company.
31
Sec.
9.
NEW
SECTION
.
325C.9
Proof
of
insurance.
32
1.
A
participating
driver
shall
carry
proof
of
33
transportation
network
company
insurance
coverage
at
all
times
34
during
which
the
driver
is
operating
the
motor
vehicle
in
35
-6-
LSB
2009XC
(2)
86
ns/nh
6/
10
S.F.
_____
connection
with
the
use
of
a
transportation
network
company’s
1
online-enabled
application
or
platform.
2
2.
In
the
event
of
an
accident,
a
participating
driver
shall
3
provide
the
proof,
upon
request,
to
a
peace
officer
and
any
4
party
to
the
accident,
in
paper
or
electronic
format,
including
5
an
electronic
image
displayed
on
a
cellular
telephone
or
any
6
other
portable
electronic
device
equipped
with
a
display
screen
7
with
touch
input
or
a
miniature
keyboard.
8
Sec.
10.
NEW
SECTION
.
325C.10
Local
authority.
9
The
provisions
of
this
chapter
shall
not
prohibit
a
local
10
authority
from
exercising
home
rule
power
and
authority
11
to
impose
additional
or
more
restrictive
requirements
upon
12
a
transportation
network
company
or
participating
driver
13
operating
within
the
jurisdiction
of
the
local
authority.
14
Sec.
11.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
15
of
immediate
importance,
takes
effect
upon
enactment.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
minimum
insurance
requirements
20
for
transportation
network
companies
(TNCs)
and
participating
21
drivers.
22
The
bill
defines
“transportation
network
company”
as
a
23
person
that
provides
prearranged
transportation
services
24
for
compensation
through
an
online-enabled
application
or
25
platform
that
connects
passengers
or
potential
passengers
26
with
participating
drivers.
The
bill
defines
four
stages
27
of
a
transaction
between
a
driver
and
a
passenger:
the
28
“app-off
stage”,
the
“app-on
stage”,
the
“engaged
stage”,
and
29
the
“passenger-on-board
stage”.
The
bill
further
defines
30
“participating
driver”
and
“transportation
network
company
31
insurance”.
32
The
bill
requires
a
TNC
to
disclose
to
a
driver,
in
writing,
33
the
amounts
of
coverage
and
the
limits
of
liability
provided
34
to
the
driver
by
the
TNC’s
insurance,
and
the
fact
that
the
35
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10
S.F.
_____
driver’s
policy
may
not
provide
the
coverage
required
by
the
1
bill
while
the
driver
operates
a
motor
vehicle
in
connection
2
with
the
use
of
the
TNC’s
online-enabled
application
or
3
platform.
The
bill
also
requires
that,
within
30
days
of
the
4
date
a
driver
first
enters
the
app-on
stage
in
connection
5
with
a
TNC’s
online-enabled
application
or
platform,
the
TNC
6
shall
notify
the
insurer
providing
the
driver’s
policy
of
7
the
driver’s
use
of
the
TNC’s
online-enabled
application
or
8
platform
unless
the
insurer
is
providing
TNC
insurance
to
the
9
driver.
10
The
bill
further
requires
a
TNC
and
a
driver,
during
the
11
app-on
stage,
the
engaged
stage,
and
the
passenger-on-board
12
stage,
to
maintain
coverage
in
the
amount
of
$1
million
13
per
accident
for
death,
bodily
injury,
and
property
damage,
14
and
$1
million
per
accident
for
uninsured,
underinsured,
or
15
hit-and-run
motor
vehicle
coverage.
The
policy
must
also
16
provide
for
medical
payments
coverage
and
collision
and
17
comprehensive
coverage
in
amounts
equal
to
or
greater
than
the
18
amounts
of
such
coverage
provided
by
the
policy
of
the
owner
19
of
the
motor
vehicle
while
the
vehicle
is
operated
during
the
20
app-off
stage.
Either
the
TNC
or
the
driver,
or
both,
may
21
maintain
coverage
to
satisfy
the
requirements
of
the
bill.
22
However,
if
the
coverage
is
maintained
by
a
driver,
a
TNC
shall
23
only
satisfy
the
requirements
of
the
bill
if
the
TNC
verifies
24
that
the
policy
maintained
by
the
driver
is
explicitly
written
25
to
cover
injury,
damage,
and
loss
arising
from
the
driver’s
26
operation
of
a
motor
vehicle
in
connection
with
the
use
of
a
27
TNC’s
online-enabled
application
or
platform.
28
The
bill
provides
that
an
insurer
providing
TNC
insurance
29
shall
have
the
duty
to
defend
and
indemnify
the
insured.
In
30
addition,
TNC
insurance
shall
not
be
conditional
on
any
other
31
insurer
first
denying
a
claim,
or
a
claim
first
being
denied
32
pursuant
to
any
other
policy.
33
The
bill
further
provides
that,
during
the
app-on
stage,
34
where
a
driver’s
insurance
lapses,
is
canceled,
fails
to
35
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10
S.F.
_____
provide
coverage,
denies
a
claim,
or
ceases
to
exist
for
any
1
reason,
the
insurance
policy
of
the
TNC
shall
provide
the
2
coverage
required
by
the
bill
beginning
with
the
first
dollar
3
of
a
claim.
In
addition,
a
TNC
shall
maintain
insurance
4
providing
coverage
to
the
company,
a
driver,
a
passenger,
and
5
the
general
public
in
the
amount
of
$500,000
per
accident
in
6
excess
of
the
insurance
required
by
the
bill
for
accidents
7
arising
from
the
driver’s
operation
of
a
motor
vehicle
in
8
connection
with
the
use
of
the
TNC’s
online-enabled
application
9
or
platform.
10
The
bill
does
not
limit
the
liability
of
a
TNC
in
an
action
11
against
the
TNC
for
an
amount
greater
than
the
amount
of
12
coverage
required
by
the
bill.
13
In
order
to
provide
coverage
to
TNCs
and
drivers,
the
14
bill
requires
an
insurance
policy
to
explicitly
provide
15
coverage
during
the
app-on
stage,
the
engaged
stage,
and
the
16
passenger-on-board
stage.
If
the
policy
does
not,
the
insurer
17
does
not
have
a
duty
to
defend
or
indemnify
the
insured.
18
The
bill
provides
that
during
the
investigation
of
an
19
insurance
claim,
a
TNC
and
insurer
shall
cooperate
with
the
20
other
insurers
involved
in
the
investigation
to
facilitate
21
the
exchange
of
information,
and
shall
provide
information
22
requested
by
another
insurer
involved
in
the
investigation
23
within
15
days
of
a
written
request
from
the
insurer
to
the
TNC
24
or
the
TNC’s
insurer.
All
records,
data,
or
reports
kept
by
a
25
TNC
relating
to
a
motor
vehicle
accident
must
be
maintained
by
26
the
TNC
for
at
least
five
years
after
the
date
the
accident
is
27
reported
to
the
TNC.
28
The
bill
requires
a
driver
to
carry
proof
of
insurance
at
all
29
times
during
which
the
driver
is
operating
the
motor
vehicle
in
30
connection
with
the
use
of
a
TNC’s
online-enabled
application
31
or
platform.
In
the
event
of
an
accident,
a
driver
shall
32
provide
the
proof,
upon
request,
to
a
peace
officer
and
any
33
party
to
the
accident,
in
paper
or
electronic
format.
34
The
bill
does
not
prohibit
a
local
authority
from
exercising
35
-9-
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10
