Florida Senate - 2016                                    SB 1118
       
       
        
       By Senator Simmons
       
       10-00629-16                                           20161118__
    1                        A bill to be entitled                      
    2         An act relating to transportation network company
    3         insurance; creating s. 627.748, F.S.; providing
    4         legislative intent; defining terms; requiring a
    5         transportation network company driver or such company
    6         on the driver’s behalf, or a combination thereof, to
    7         maintain primary automobile insurance issued by
    8         specified insurers with certain coverages in specified
    9         amounts during certain timeframes; requiring a
   10         transportation network company driver to maintain
   11         primary automobile insurance issued by specified
   12         insurers with certain coverages in specified amounts
   13         during certain timeframes; requiring the
   14         transportation network company to provide automobile
   15         insurance in the event insurance maintained by the
   16         transportation network company driver lapses or does
   17         not provide the required coverage; requiring a
   18         transportation network company driver to carry proof
   19         of certain insurance coverage at all times during his
   20         or her use of a personal vehicle and to disclose
   21         specified information in the event of an accident;
   22         requiring a transportation network company to make
   23         certain disclosures to transportation network company
   24         drivers; authorizing insurers to exclude certain
   25         coverages during specified periods for policies issued
   26         to transportation network company drivers for personal
   27         vehicles; requiring a transportation network company
   28         and certain insurers to cooperate during a claims
   29         investigation to facilitate the exchange of specified
   30         information; requiring a transportation network
   31         company to determine whether an individual’s personal
   32         vehicle is subject to a lien before allowing the
   33         individual to act as a driver and, if the vehicle is
   34         subject to a lien, to verify that the insurance
   35         required by this section provides coverage to the
   36         lienholder during specified periods; providing that
   37         unless agreed to in a written contract, a
   38         transportation network company is not deemed to
   39         control, direct, or manage the personal vehicles or
   40         transportation network company drivers that connect to
   41         its digital network; authorizing the Office of
   42         Insurance Regulation to adopt rules; providing for
   43         preemption of local laws and regulations pertaining to
   44         transportation network company insurance; providing an
   45         effective date.
   46          
   47  Be It Enacted by the Legislature of the State of Florida:
   48  
   49         Section 1. Section 627.748, Florida Statutes, is created to
   50  read:
   51         627.748 Transportation network company insurance.—
   52         (1) It is the intent of the Legislature to provide for
   53  statewide uniformity of laws governing the insurance
   54  requirements imposed on transportation network companies and
   55  transportation network company drivers.
   56         (2) For purposes of this section, the term:
   57         (a) “Digital network” means an online application,
   58  software, website, or system offered or used by a transportation
   59  network company which enables the prearrangement of rides with
   60  transportation network company drivers.
   61         (b) “Personal vehicle” means a vehicle, however titled,
   62  which is used by a transportation network company driver in
   63  connection with providing transportation network company service
   64  and which:
   65         1. Is owned, leased, or otherwise authorized for use by the
   66  transportation network company driver; and
   67         2.Is not a taxi, jitney, limousine, or for-hire vehicle as
   68  that term is defined in s. 320.01(15).
   69         (c) “Prearranged ride” means the provision of
   70  transportation by a driver to or on behalf of a rider, beginning
   71  when a driver accepts a request for a ride by a rider through a
   72  digital network controlled by a transportation network company,
   73  continuing while the driver transports the rider, and ending
   74  when the last rider departs from the personal vehicle. A
   75  prearranged ride does not include transportation provided using
   76  a taxi, jitney, limousine, for-hire vehicle as defined in s.
   77  320.01(15), or street hail service.
   78         (d) “Transportation network company” or “company” means a
   79  corporation, partnership, sole proprietorship, or other entity
   80  operating in this state which uses a digital network to connect
   81  transportation network company riders to transportation network
   82  company drivers who provide prearranged rides. A transportation
   83  network company does not include an individual, corporation,
   84  partnership, sole proprietorship, or other entity arranging
   85  nonemergency medical transportation for individuals qualifying
   86  for Medicaid or Medicare pursuant to a contract with the state
   87  or a managed care organization.
   88         (e) “Transportation network company driver” or “driver”
   89  means an individual who:
   90         1. Receives connections to potential riders and related
   91  services from a transportation network company in exchange for
   92  any form of compensation, including payment of a fee to the
   93  transportation network company; and
   94         2. Uses a personal vehicle to offer or provide a
   95  prearranged ride to riders upon connection through a digital
   96  network controlled by a transportation network company in return
   97  for compensation, including payment of a fee.
   98         (f) “Transportation network company rider” or “rider” means
   99  an individual who directly or indirectly uses a transportation
  100  network company’s digital network to connect with a
  101  transportation network company driver who provides
  102  transportation services to the individual in the driver’s
  103  personal vehicle.
  104         (3)(a) A transportation network company driver, or a
  105  transportation network company on the driver’s behalf, shall
  106  maintain primary automobile insurance that recognizes that the
  107  driver is a transportation network company driver or that the
  108  driver otherwise uses a personal vehicle to transport riders for
  109  compensation. Such primary automobile insurance must cover the
  110  driver as required under this section, including while the
  111  driver is logged on to the transportation network company’s
  112  digital network and is engaged in a prearranged ride.
  113         (b) The following automobile insurance coverage
  114  requirements apply while a transportation network company driver
  115  is logged on to the transportation network company’s digital
  116  network and is available to receive transportation requests, but
  117  is not engaged in a prearranged ride:
  118         1. Primary automobile liability insurance coverage of at
  119  least $50,000 for death and bodily injury per person, $100,000
  120  for death and bodily injury per incident, and $25,000 for
  121  property damage; and
  122         2. Primary automobile insurance coverage that meets the
  123  minimum requirements under ss. 627.730-627.7405.
  124         (c) While engaged in a prearranged ride, a transportation
  125  network company driver must be covered by primary automobile
  126  liability insurance coverage of at least $1 million for death
  127  and bodily injury and $50,000 for property damage.
  128         (d) The coverage requirements of paragraphs (b) and (c) may
  129  be satisfied by automobile insurance maintained by the
  130  transportation network company driver, by the transportation
  131  network company, or by a combination of both.
  132         (e) If the insurance maintained by a driver under paragraph
  133  (b) or paragraph (c) lapses or does not provide the required
  134  coverage, the transportation network company must maintain
  135  insurance that provides the coverage required by this section
  136  beginning with the first dollar of a claim and must obligate the
  137  insurer to defend such a claim in this state.
  138         (f)Coverage under an automobile insurance policy
  139  maintained by the transportation network company may not be
  140  contingent on a denial of a claim under the driver’s personal
  141  automobile liability insurance policy.
  142         (g) Automobile insurance required by this section must be
  143  provided by an insurer authorized to do business in this state
  144  which is a member of the Florida Insurance Guaranty Association
  145  or an eligible surplus lines insurer that is rated “A-” or
  146  higher by A.M. Best Company.
  147         (h) Automobile insurance that satisfies the requirements of
  148  this section is deemed to satisfy the financial responsibility
  149  requirements imposed under chapter 324 and the security
  150  requirements imposed under s. 627.733. However, the provision of
  151  transportation to persons for compensation that is not covered
  152  under this section subjects a vehicle and driver to the
  153  requirements of chapters 320 and 324.
  154         (i) A transportation network company driver shall carry
  155  proof of insurance coverage that meets the requirements of
  156  paragraphs (b) and (c) at all times during his or her use of a
  157  personal vehicle. In the event of an accident:
  158         1. The driver shall provide the insurance coverage
  159  information to the directly involved parties, automobile
  160  insurers, and investigating law enforcement officers. Proof of
  161  financial responsibility may be provided through a digital
  162  telephone application under s. 316.646 which is controlled by a
  163  transportation network company.
  164         2. Upon request, the driver shall disclose to the directly
  165  involved parties, automobile insurers, and investigating law
  166  enforcement officers whether the driver, at the time of the
  167  accident, was logged on to the transportation network company’s
  168  digital network or engaged in a prearranged ride.
  169         (j) Before a driver may accept a request for a prearranged
  170  ride on the transportation network company’s digital network,
  171  the transportation network company shall disclose in writing to
  172  each transportation network company driver:
  173         1. The type and limits of insurance coverage provided by
  174  the transportation network company;
  175         2. The type of automobile insurance coverage that the
  176  driver must maintain while the driver uses a personal vehicle in
  177  connection with the transportation network company; and
  178         3. That the provision of rides for compensation, whether
  179  prearranged or otherwise, which is not covered by this section
  180  subjects the driver to the coverage requirements imposed by s.
  181  324.032(1) and that failure to meet such limits subjects the
  182  driver to penalties provided in s. 324.221, up to and including
  183  a misdemeanor of the second degree.
  184         (k) An insurer that provides personal automobile insurance
  185  policies under this part may exclude from coverage under a
  186  policy issued to an owner or operator of a personal vehicle any
  187  loss or injury that occurs while a driver is logged on to a
  188  transportation network company’s digital network or while a
  189  driver is engaged in a prearranged ride. Such right to exclude
  190  coverage applies to any coverage under an automobile insurance
  191  policy, including, but not limited to:
  192         1. Liability coverage for bodily injury and property
  193  damage.
  194         2. Personal injury protection coverage.
  195         3. Uninsured and underinsured motorist coverage.
  196         4. Medical payments coverage.
  197         5. Comprehensive physical damage coverage.
  198         6. Collision physical damage coverage.
  199         (l) The exclusions authorized under paragraph (k) apply
  200  notwithstanding any financial responsibility requirements under
  201  chapter 324. This section does not require that a personal
  202  automobile insurance policy provide coverage while the driver is
  203  logged on to the transportation network company’s digital
  204  network, while the driver is engaged in a prearranged ride, or
  205  while the driver otherwise uses a personal vehicle to transport
  206  riders for compensation. However, an insurer may elect to
  207  provide coverage by contract or endorsement for such driver’s
  208  personal vehicle used for such purposes.
  209         (m) An insurer that excludes coverage as authorized under
  210  paragraph (k):
  211         1. Does not have a duty to defend or indemnify an excluded
  212  claim. This section does not invalidate or limit an exclusion
  213  contained in a policy, including any policy in use or approved
  214  for use in this state before July 1, 2016.
  215         2. Has a right of contribution against other insurers that
  216  provide automobile insurance to the same driver in satisfaction
  217  of the coverage requirements of this section at the time of
  218  loss, if the insurer defends or indemnifies a claim against a
  219  driver which is excluded under the terms of its policy.
  220         (n) In a claims investigation, a transportation network
  221  company and any insurer potentially providing coverage for a
  222  claim under this section shall cooperate to facilitate the
  223  exchange of relevant information with directly involved parties
  224  and insurers of the transportation network company driver, if
  225  applicable. Such information must provide:
  226         1. The precise times that a driver logged on and off the
  227  transportation network company’s digital network during the 12
  228  hour period immediately before and immediately after the
  229  accident.
  230         2. A clear description of the coverage, any exclusions, and
  231  the limits provided under automobile insurance maintained under
  232  this section.
  233         (o) Before allowing an individual to act as a driver on its
  234  digital network, a transportation network company shall
  235  determine whether the driver’s personal vehicle is subject to a
  236  lien. If the personal vehicle is subject to a lien, the
  237  transportation network company shall verify that the insurance
  238  required by this section provides coverage to the lienholder
  239  while the driver is logged into the transportation network
  240  company’s digital network and while the driver is providing a
  241  prearranged ride.
  242         (4) Unless agreed to in a written contract, a
  243  transportation network company is not deemed to control, direct,
  244  or manage the personal vehicles that, or the transportation
  245  network company drivers who, connect to its digital network.
  246         (5) The office may adopt rules to administer this section.
  247         Section 2. PREEMPTION.—Notwithstanding any other law,
  248  transportation network company insurance requirements are
  249  governed exclusively by this section and any rules adopted by
  250  the Department of Financial Services to administer this section.
  251  A political subdivision of this state may not adopt any
  252  ordinance imposing insurance requirements on a transportation
  253  network company or driver. All such ordinances, whether existing
  254  or proposed, are preempted and superseded by general law.
  255         Section 3. This act shall take effect January 1, 2017.