Bill Text: NJ A3906 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires transportation network companies to register with MVC and maintain certain insurance coverages.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-12-11 - Combined with A3765/3586/3401/3755/3751/3854 ACS [A3906 Detail]
Download: New_Jersey-2014-A3906-Introduced.html
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
SYNOPSIS
Requires transportation network companies to register with MVC and maintain certain insurance coverages.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning transportation network companies and supplementing Title 39 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Passenger" means a person who prearranges use of a transportation network vehicle through a transportation network company's online application or digital network.
"Transportation network company" or "company" means an individual, corporation, partnership, sole proprietorship, or other entity that uses an online application or digital network to connect a customer to a transportation network driver for the purpose of providing transportation or a service during a transportation network trip.
"Transportation network driver" or "driver" means a person, who operates a transportation network vehicle during a transportation network trip.
"Transportation network trip" or "trip" means the time that begins when a transportation network driver logs onto a transportation network company's online application or digital network or is able to accept requests for service, and ends when a transportation network driver logs out or has completed a service, or no longer has a passenger in the vehicle, or is no longer able to accept a request for service, whichever occurs last.
"Transportation network vehicle" or "vehicle" means a passenger automobile, as defined in R.S.39:1-1, which is operated by a transportation network driver or a licensee of a transportation network company's software.
2. A transportation network company shall not operate in this State unless the transportation network company:
a. registers with the New Jersey Motor Vehicle Commission as a transportation network company in a manner to be prescribed by the commission;
b. appoints an agent for the service of process in this State, to be filed with the commission. Any change of the agent or the address or other contact therefor shall be filed within 10 days of the effective date of the change; and
c. provides the commission with proof of insurance coverage required pursuant to section 3 of this act, in a manner to be prescribed by the commission.
3. a. A transportation network company shall ensure that, whenever any of its transportation network drivers operates a transportation network vehicle during a transportation network trip, an insurance policy issued by an insurance company duly licensed or authorized to do business in this State is in effect and that the policy includes:
(1) liability coverage and uninsured and underinsured motorist coverage for bodily injury and property damage in an amount not less than $1,000,000 per occurrence;
(2) medical payments coverage in an amount not less than $10,000, per person, per occurrence; and
(3) optional collision and comprehensive coverage.
b. The insurance requirements set forth in subsection a. of this section may be satisfied by either:
(1) an insurance policy obtained by a transportation network company that provides coverage for the vehicle, driver, and passenger for the duration of the transportation network trip;
(2) an endorsement, rider, or new policy from a private passenger automobile insurance company, which is specifically written to cover the use of the vehicle during a transportation network trip, and which is placed on file with the transportation network company; or
(3) any combination of insurance policies provided for in paragraphs (1) and (2) of this subsection b., if they are separately and specifically written to cover a transportation network trip, or any portion thereof, and placed on file with the transportation network company.
c. The transportation network driver's or the vehicle owner's private passenger automobile insurance policy shall not provide any coverage to the driver, vehicle owner, or any third party during any transportation network trip and the insurer providing the policy shall have no duty to defend or indemnify for the driver's activities during the transportation network trip, unless the policy, endorsement, or rider expressly provides for that coverage.
d. A transportation network company shall disclose in writing to a transportation network driver, as part of its agreement with the driver:
(1) the insurance coverage limits that the transportation network company provides while the driver operates a transportation network vehicle during the transportation network trip; and
(2) that a private passenger automobile insurance policy will not provide any coverage during the transportation network trip, unless coverage for the transportation network trip is separately and specifically stated in the private passenger automobile insurance policy, endorsement or rider.
e. Insurance coverage required by this section during the transportation network trip shall not be dependent on an insurer under a private passenger automobile insurance policy first denying a claim, and the insurer shall not be required to first deny a claim, unless the policy, endorsement or rider is specifically written to cover the transportation network trip.
f. If insurance coverage for the transportation network trip maintained by a transportation network driver to fulfill the obligations of this section lapses or ceases to exist, the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim, without copayments, deductibles, or any other amounts having to be paid by the transportation network driver or through the driver's private passenger automobile insurance policy.
g. This section shall not be construed to limit the liability of a transportation network company arising out of an accident during the transportation network trip in any action for damages against a transportation network company for an amount in excess of the required insurance coverage.
4. In an insurance claims coverage investigation of an occurrence during the transportation network trip, a transportation network company and its insurer shall cooperate with, and facilitate the exchange of information with, all other insurers who are involved in the claims coverage investigation.
5. a. A transportation network company shall retain records, for at least seven years, of each of the company's transportation network drivers, and each driver's use of a transportation network vehicle during a transportation network trip, which records shall include information on:
(1) the date, time, and duration of each transportation network trip, including the time period during which the driver logged onto the transportation company's online application or digital network or indicated the driver's availability;
(2) the locations and mileage data associated with each trip, if available; and
(3) any claims for injury or property damage arising in connection with each trip, including claims payments made, if applicable.
b. The information required to be maintained pursuant to subsection a. of this section shall be provided, upon request, to the driver's personal automobile insurer for purposes of a claim investigation.
6. A transportation network company that violates a provision of this act or any rule or regulation adopted pursuant thereto shall be subject to a civil penalty of $1,000 for the first offense, per driver, and up to $5,000 for each subsequent offense, per driver, to be collected in a civil action by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
7. The New Jersey Motor Vehicle Commission, in consultation with the Department of Banking and Insurance, shall promulgate rules and regulations to effectuate the purposes of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
8. This act shall take effect on the 60th day next following enactment.
STATEMENT
This bill requires transportation network companies operating in this State to register with the New Jersey Motor Vehicle Commission and provide the commission with proof of certain insurance coverages for transportation network trips by transportation network drivers.
Specifically, the bill provides that a transportation network company shall ensure that, whenever any of its transportation network drivers operates a transportation network vehicle during a transportation network trip, an insurance policy issued by an insurance company duly licensed or authorized to do business in this State is in effect and that the policy includes:
§ Liability coverage and uninsured and underinsured motorist coverage for bodily injury and property damage in an amount not less than $1,000,000 per occurrence;
§ Medical payments coverage in an amount not less than $10,000, per person, per occurrence; and
§ Optional collision and comprehensive coverage.
These insurance requirements may be satisfied by either:
(1) An insurance policy obtained by a transportation network company that provides coverage for the vehicle, driver, and passenger for the duration of the transportation network trip;
(2) An endorsement, rider, or new policy from a private passenger automobile insurance company, which is specifically written to cover the use of the vehicle during a transportation network trip, and which is placed on file with the transportation network company; or
(3) Any combination of insurance policies provided for in paragraphs (1) and (2), if they are separately and specifically written to cover a transportation network trip, or any portion thereof, and placed on file with the transportation network company.
The bill defines a transportation network trip to mean the time that begins when a transportation network driver logs onto a transportation network company's online application or digital network, or is able to accept requests for service, and ends when a transportation network driver logs out or has completed a service, or no longer has a passenger in the vehicle, or is no longer able to accept a request for service, whichever occurs last.
The bill also requires a transportation network company to make certain disclosures to drivers regarding the insurance coverage applicable during transportation network trips, cooperate with other insurers with respect to claims coverage investigations, and retain certain records concerning transportation network trips by its transportation network drivers.
In addition, the bill provides that a transportation network company that violates a provision of this bill or any rule or regulation adopted pursuant thereto shall be subject to a civil penalty of $1,000 for the first offense, per driver, and up to $5,000 for each subsequent offense, per driver, to be collected in a civil action by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
Finally, the bill provides that the New Jersey Motor Vehicle Commission, in consultation with the Department of Banking and Insurance, shall promulgate rules and regulations to effectuate the purposes of the bill, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
