Bill Text: NJ A4475 | 2014-2015 | Regular Session | Introduced
Bill Title: Establishes insurance and other requirements for transportation network companies and their drivers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2015-06-01 - Introduced, Referred to Assembly Transportation and Independent Authorities Committee [A4475 Detail]
Download: New_Jersey-2014-A4475-Introduced.html
Sponsored by:
Assemblyman JOHN S. WISNIEWSKI
District 19 (Middlesex)
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
SYNOPSIS
Establishes insurance and other requirements for transportation network companies and their drivers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning insurance requirements for 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. For the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Digital network" means any online-enabled application, software, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
"Limousine" means limousine as defined pursuant to R.S.48:16-13.
"Personal vehicle" means a vehicle that is used by a transportation network company driver in connection with providing a prearranged ride and is owned, leased, or otherwise authorized for use by the transportation network company driver and is not a taxi or limousine.
"Prearranged ride" means the provision of transportation by a driver to a rider beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided using a taxi or limousine.
"Taxi" means an autocab as defined pursuant to R.S.48:16-1.
"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that is licensed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and operating in New Jersey that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides.
"Transportation network company driver" or "driver" means a person who: (1) receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and (2) uses a personal vehicle to provide prearranged rides to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.
"Transportation network company rider" or "rider" means a person who uses a transportation network company's digital network to connect with a transportation network company driver who provides prearranged rides to the rider using the driver's personal vehicle.
2. a. Whenever a transportation network company driver is logged on to the digital network and is available to receive transportation requests but is not engaged in a prearranged ride, primary automobile liability insurance, which covers both the driver and any riders and recognizes that the driver is a transportation network company driver, shall provide coverage in an amount of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident; and $25,000 for property damage. The insurance coverage required by this subsection may be satisfied by insurance maintained by:
(1) the transportation network company driver;
(2) the transportation network company; or
(3) any combination of paragraphs (1) and (2);
provided, however, that if insurance coverage maintained by a transportation network company driver pursuant to this subsection has lapsed or does not provide the required coverage, insurance maintained by the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim and the transportation network company shall have the duty to defend the claim.
b. Whenever a transportation network company driver is engaged in a prearranged ride, primary automobile liability insurance, which covers the driver and any riders and recognizes that the driver is a transportation network company driver, shall be required to provide coverage in an amount of at least $1,000,000 for death, bodily injury, and property damage. The insurance coverage required by this subsection may be satisfied by insurance maintained by:
(1) the transportation network company driver;
(2) the transportation network company; or
(3) any combination of paragraphs (1) and (2);
provided, however, that if insurance coverage maintained by a transportation network company driver pursuant to this subsection has lapsed or does not provide the required coverage, insurance maintained by the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim and the transportation network company shall have the duty to defend the claim.
c. Coverage under an automobile liability insurance policy maintained by the transportation network company shall not be dependent on a private passenger automobile insurer first denying a claim nor shall a private passenger automobile insurance policy be required to first deny a claim.
d. Insurance required by this section may be obtained from an insurance company duly licensed to transact business under the insurance laws of this State or from an eligible surplus lines insurer under section 11 of P.L.1960, c.32 (C.17:22-6.45).
e. The coverage required pursuant to subsections a. and b. of this section shall be deemed to meet the requirements of P.L.1972, c.197 (C.39:6B-1 et seq.).
3. a. Notwithstanding P.L.1972, c.197 (C.39:6B-1 et seq.), an insurance company duly licensed to transact business under the insurance laws of this State may exclude any and all coverage afforded under a private passenger automobile insurance policy for any loss or injury that occurs while a transportation network company driver is logged on to a digital network or while a transportation network company driver is engaged in a prearranged ride. This right to exclude all coverage may apply to any coverage included in a private passenger automobile insurance policy including, but not limited to: liability coverage for bodily injury and property damage, personal injury protection coverage, uninsured and underinsured motorist coverage, medical payments coverage, comprehensive physical damage coverage, and collision physical damage coverage.
b. An insurance company duly licensed to transact business under the insurance laws of this State that excludes coverage pursuant to subsection a. of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder. An insurance company that defends or indemnifies a claim against a driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile liability insurance to the same driver in satisfaction of the coverage required pursuant to subsections a. and b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) at the time of loss.
c. In a claims coverage investigation, a transportation network company and any insurer potentially providing coverage under subsections a. and b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver, if applicable, including the precise times that a transportation network company driver logged on and off the digital network in the 12-hour period immediately preceding and immediately following the accident and shall disclose a clear description of the coverage, exclusions, and limits provided under any insurance maintained under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. Nothing in this section shall:
(1) be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in this State prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) imply or require that a personal automobile insurance policy provide coverage while the transportation network company driver is logged on to the digital network, or while the driver is engaged in a prearranged ride; or
(3) be deemed to preclude an insurer from providing coverage by contract or endorsement for the transportation network company driver while a transportation network company driver is logged on to a digital network or while a transportation network company driver is engaged in a prearranged ride.
4. a. A transportation network company driver shall carry proof of insurance satisfying subsections a. and b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) at all times while using a personal vehicle in connection with a transportation network company's digital network.
b. In the event of an accident, a transportation network company driver shall, upon request, provide insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers. The insurance coverage information may be displayed or provided in either paper or electronic form as provided in R.S.39:3-29.
c. A transportation network company driver shall, upon request, disclose to the directly interested parties, automobile insurers, and investigating police officers whether the driver was logged on to a digital network or whether the driver was providing a prearranged ride at the time of the accident.
5. A transportation network company shall not permit a driver to accept requests for prearranged rides on the transportation network company's digital network until the transportation network company discloses in writing to the transportation network driver:
a. the insurance coverage, including the types and limits of coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and
b. that the transportation network company driver's own private passenger automobile insurance policy may not provide any coverage while the driver is logged on to the digital network and is available to receive transportation requests or while the driver is engaged in a prearranged ride.
6. A transportation network company shall not be deemed to control, direct, or manage the personal vehicle or transportation network company drivers that connect to its digital network, except where agreed to by written contract.
7. This act shall take effect immediately.
STATEMENT
This bill establishes liability insurance requirements for transportation network companies and transportation network company drivers (drivers). A transportation network company (TNC) is defined to be a corporation, partnership, sole proprietorship, or other entity operating in New Jersey that uses a digital network to connect riders to drivers who provide prearranged rides in their personal vehicle.
Under the bill, insurance coverage in an amount of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident, and $25,000 for property damage is required whenever a driver is logged on to the TNC's digital network and is available to receive transportation requests but is not engaged in a prearranged ride. Coverage in an amount of at least $1,000,000 for death, bodily injury, and property damage is required whenever a driver is engaged in a prearranged ride. The insurance coverage required by the bill: (1) may be obtained from a duly licensed insurance company or from an eligible surplus lines insurer; (2) is required to be the primary insurance in the event of an accident; and (3) may be satisfied by insurance maintained by the TNC, the driver, or any combination of the TNC and the driver. The bill provides that if the insurance coverage maintained by a driver has lapsed or does not provide the required coverage, insurance maintained by the TNC is required to provide the necessary coverage.
In addition, the bill requires a driver to carry proof of the required insurance at all times while using a personal vehicle in connection with a TNC's digital network. In the event of an accident, a driver is required, upon request, to provide insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers. The insurance coverage information may be displayed or provided in either paper or electronic form. A driver is also required, upon request, to disclose to the directly interested parties, automobile insurers, and investigating police officers whether the driver was logged on to a digital network or whether the driver was providing a prearranged ride at the time of the accident.
The bill also provides that a TNC is prohibited from permitting a driver to accept requests for prearranged rides on the TNC's digital network until the TNC discloses in writing to the driver: (1) the insurance coverage, including the types and limits of coverage, that the TNC provides; and (2) that the driver's own private passenger automobile insurance policy may not provide any coverage while the driver is logged on to the digital network and is available to receive transportation requests or while the driver is engaged in a prearranged ride.
Finally, the bill provides that a TNC is not deemed to control, direct, or manage the personal vehicle or transportation network company drivers that connect to its digital network, except where agreed to by written contract.
