Bill Text: TX HB1733 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to automobile liability insurance for transportation network company drivers.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2015-06-17 - Effective on 1/1/16 [HB1733 Detail]

Download: Texas-2015-HB1733-Enrolled.html
 
 
  H.B. No. 1733
 
 
 
 
AN ACT
  relating to automobile liability insurance for transportation
  network company drivers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 10, Insurance Code, is amended
  by adding Chapter 1954 to read as follows:
  CHAPTER 1954. INSURANCE FOR TRANSPORTATION NETWORK COMPANY DRIVERS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1954.001.  DEFINITIONS. In this chapter:
               (1)  "Digital network" means any online-enabled
  application, software, website, or system offered or used by a
  transportation network company that enables a prearranged ride with
  a transportation network company driver.
               (2)  "Personal vehicle" means a vehicle that is used by
  a transportation network company driver and is:
                     (A)  owned, leased, or otherwise authorized for
  use by the driver; and
                     (B)  not a taxicab, limousine, or similar for-hire
  vehicle.
               (3)  "Prearranged ride" means transportation provided
  by a transportation network company driver to a transportation
  network company rider, beginning at the time a driver accepts a ride
  requested by a rider through a digital network controlled by a
  transportation network company and ending at the time the last
  requesting rider departs from the driver's personal vehicle. The
  term does not include:
                     (A)  a shared expense carpool or vanpool
  arrangement or service; or
                     (B)  transportation provided using a taxicab,
  limousine, or similar for-hire vehicle.
               (4)  "Transportation network company" means a
  corporation, partnership, sole proprietorship, or other entity
  operating in this state that uses a digital network to connect a
  transportation network company rider to a transportation network
  company driver for a prearranged ride.  The term does not include an
  entity arranging nonemergency medical transportation under a
  contract with the state or a managed care organization for
  individuals qualifying for Medicaid or Medicare.
               (5)  "Transportation network company driver" means an
  individual who:
                     (A)  receives connections to potential
  transportation network company riders and related services from a
  transportation network company in exchange for payment of a fee to
  the company; and
                     (B)  uses a personal vehicle to offer or provide a
  prearranged ride to a transportation network company rider on
  connection with the rider through a digital network controlled by
  the company in exchange for compensation or payment of a fee.
               (6)  "Transportation network company rider" means an
  individual who uses a transportation network company's digital
  network to connect with a transportation network company driver who
  provides a prearranged ride to the individual in the driver's
  personal vehicle between points chosen by the individual.
         Sec. 1954.002.  APPLICABILITY OF CHAPTER. This chapter
  applies to automobile insurance policies in this state, including
  policies issued by a Lloyd's plan, a reciprocal or interinsurance
  exchange, and a county mutual insurance company.
  SUBCHAPTER B. INSURANCE REQUIREMENTS
         Sec. 1954.051.  GENERAL INSURANCE REQUIREMENT. (a) A
  transportation network company driver or transportation network
  company on the driver's behalf shall maintain primary automobile
  insurance as required by this subchapter.
         (b)  Insurance maintained under this subchapter must allow a
  transportation network company driver to use a personal vehicle to
  transport transportation network company riders for compensation
  and cover the driver while:
               (1)  the driver is logged on to the transportation
  network company's digital network as provided by Section 1954.052;
  or
               (2)  the driver is engaged in a prearranged ride as
  provided by Section 1954.053.
         (c)  Insurance maintained under this subchapter must comply
  with the law applicable to personal automobile insurance in this
  state, including this subtitle and Chapter 601, Transportation
  Code.
         (d)  The coverage requirements of this subchapter may be
  satisfied by:
               (1)  automobile insurance maintained by the
  transportation network company driver;
               (2)  automobile insurance maintained by the
  transportation network company; or
               (3)  a combination of Subdivisions (1) and (2).
         (e)  Insurance required under this subchapter may be placed
  with an automobile insurer authorized to engage in business in this
  state or with an eligible surplus lines insurer.
         Sec. 1954.052.  INSURANCE REQUIREMENTS: BETWEEN PREARRANGED
  RIDES. At the time a transportation network company driver is
  logged on to the transportation network company's digital network
  and is available to receive transportation network requests but is
  not engaged in a prearranged ride, the automobile insurance policy
  must provide:
               (1)  the following minimum amounts of liability
  insurance coverage:
                     (A)  $50,000 for bodily injury to or death for
  each person in an incident;
                     (B)  $100,000 for bodily injury to or death of a
  person per incident; and
                     (C)  $25,000 for damage to or destruction of
  property of others in an incident;
               (2)  uninsured or underinsured motorist coverage where
  required by Section 1952.101; and
               (3)  personal injury protection coverage where
  required by Section 1952.152.
         Sec. 1954.053.  INSURANCE REQUIREMENTS: DURING PREARRANGED
  RIDES. At the time a transportation network company driver is
  engaged in a prearranged ride, the automobile insurance policy must
  provide, at a minimum:
               (1)  coverage with a total aggregate limit of liability
  of $1 million for death, bodily injury, and property damage for each
  incident;
               (2)  uninsured or underinsured motorist coverage where
  required by Section 1952.101; and 
               (3)  personal injury protection coverage where
  required by Section 1952.152.
         Sec. 1954.054.  LAPSE OF OR INSUFFICIENT COVERAGE. If an
  insurance policy maintained by a transportation network company
  driver under this subchapter has lapsed or does not provide the
  coverage required by this subchapter, the transportation network
  company shall provide the coverage required by this subchapter
  beginning with the first dollar of a claim against the driver.
         Sec. 1954.055.  RELATION TO PERSONAL AUTOMOBILE INSURANCE.
  Coverage under an automobile insurance policy maintained by the
  transportation network company is not contingent on a
  transportation network company driver's personal automobile
  insurer initially denying a claim.
         Sec. 1954.056.  FINANCIAL RESPONSIBILITY. (a) Insurance
  satisfying the requirements of this subchapter satisfies the
  financial responsibility requirement for an automobile under
  Chapter 601, Transportation Code.
         (b)  A transportation network company driver shall carry
  proof of insurance that satisfies Sections 1954.052 and 1954.053
  with the driver when the driver uses a vehicle in connection with a
  transportation network company's digital network. In the event of
  an accident, a driver shall provide the proof of insurance to a
  directly interested person, automobile insurer, and investigating
  peace officer on request under Section 601.053, Transportation
  Code. On request, a driver shall also disclose to a directly
  interested person, automobile insurer, and investigating peace
  officer whether, at the time of the accident, the driver was:
               (1)  logged on to the company's digital network; or
               (2)  engaged in a prearranged ride.
  SUBCHAPTER C. RELATIONSHIP BETWEEN TRANSPORTATION NETWORK COMPANY
  AND TRANSPORTATION NETWORK COMPANY DRIVER
         Sec. 1954.101.  REQUIRED DISCLOSURES. Before a
  transportation network company driver may accept a request for a
  prearranged ride on a transportation network company's digital
  network, the company shall disclose in writing the following:
               (1)  the insurance policy, including the types of
  coverage and the limits for the policy, that the company provides
  while a driver uses a personal vehicle in connection with the
  company's digital network; and
               (2)  that the driver's personal automobile insurance
  policy may not provide coverage, depending on the policy's terms,
  while the driver is logged on to the company's digital network and
  is available to receive transportation requests or is engaged in a
  prearranged ride.
         Sec. 1954.102.  CONTROL OF TRANSPORTATION NETWORK COMPANY
  DRIVERS. A transportation network company does not control,
  direct, or manage a personal vehicle or a transportation network
  company driver who connects to the company's digital network except
  as agreed by written contract.
  SUBCHAPTER D. PERSONAL AUTOMOBILE INSURANCE
         Sec. 1954.151.  AUTHORIZED EXCLUSIONS FROM COVERAGE. (a)
  An insurer may exclude from coverage under a personal automobile
  insurance policy issued to an owner or operator of a personal
  vehicle any loss or injury that occurs while a transportation
  network company driver using the personal vehicle:
               (1)  is logged on to a transportation network company's
  digital network; or
               (2)  is engaged in a prearranged ride.
         (b)  Subsection (a) applies to any coverage included in a
  personal automobile insurance policy, including:
               (1)  liability coverage for bodily injury and property
  damage;
               (2)  personal injury protection coverage under
  Subchapter D, Chapter 1952;
               (3)  uninsured and underinsured motorist coverage;
               (4)  medical payment coverage;
               (5)  comprehensive physical damage coverage; and
               (6)  collision physical damage coverage.
         (c)  An exclusion authorized under this section applies
  notwithstanding a financial responsibility requirement under
  Chapter 601, Transportation Code.
         (d)  This subchapter may not be construed to invalidate or
  limit an exclusion contained in a policy form, including a policy
  form in use or approved for use in this state before January 1,
  2016, that excludes coverage for automobiles used to carry persons
  or property for compensation or available for hire by the public.
         Sec. 1954.152.  COVERAGE UNDER PERSONAL AUTOMOBILE
  INSURANCE NOT REQUIRED.  (a)  This subchapter does not require a
  personal automobile insurance policy to cover a transportation
  network company driver while:
               (1)  the driver is logged on to a transportation
  network company's digital network;
               (2)  the driver is engaged in a prearranged ride; or
               (3)  the driver otherwise uses a vehicle to transport
  passengers for compensation.
         (b)  This section does not prevent an insurer from providing
  coverage that may be excluded under this section if the insurer
  elects to provide the coverage in the policy or by endorsement.
         Sec. 1954.153.  DEFENSE OR INDEMNIFICATION OF CLAIM. (a) An
  automobile insurer that issues a personal automobile insurance
  policy that includes an exclusion from coverage authorized by
  Section 1954.151 does not have a duty to defend or indemnify a claim
  arising from an event subject to the exclusion.
         (b)  An automobile insurer that defends or indemnifies a
  claim against a transportation network company driver for which
  coverage is excluded under the terms of the policy as authorized by
  this subchapter has a right of contribution against another insurer
  that provides automobile insurance to the driver in satisfaction of
  the coverage requirements under Section 1954.052 or 1954.053, as
  applicable.
         Sec. 1954.154.  ASSISTANCE IN CLAIM INVESTIGATION. In an
  insurance claim investigation, a transportation network company
  and any insurer providing coverage under Subchapter B shall assist
  each insurer involved in the claim by providing information to
  directly interested persons and an insurer of the transportation
  network company driver. Information provided under this section
  must include:
               (1)  the precise times that a driver logged on and off
  of the transportation network company's digital network in the
  12-hour period immediately preceding and the 12-hour period
  immediately following the accident; and
               (2)  a clear description of the coverage, exclusions,
  and limits provided under an automobile insurance policy maintained
  under Subchapter B.
         Sec. 1954.155.  PAYMENT OF CERTAIN CLAIMS. If there is a
  lien on a personal vehicle and the transportation network company's
  insurer covers a claim arising out of an incident that occurred
  during a prearranged ride, the insurer shall issue payment for the
  claim:
               (1)  directly to the person who is repairing the
  vehicle; or
               (2)  jointly to the owner of the personal vehicle and
  the primary lienholder.
         SECTION 2.  This Act takes effect January 1, 2016.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1733 was passed by the House on May
  13, 2015, by the following vote:  Yeas 136, Nays 7, 3 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1733 was passed by the Senate on May
  26, 2015, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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