CS for SB 1298 Second Engrossed (ntc) 20151298e2 1 A bill to be entitled 2 An act relating to minimum insurance requirements; 3 amending s. 316.646, F.S.; requiring a transportation 4 network company driver to have proof of certain 5 insurance in his or her possession during a specified 6 timeframe; creating s. 627.716, F.S.; defining terms; 7 establishing insurance requirements for short-term 8 rental network companies during certain timeframes; 9 requiring a short-term rental network company to make 10 certain written disclosures to participating lessors; 11 requiring an insurer to defend and indemnify an 12 insured in this state; prohibiting the personal 13 insurance policy of a participating lessor of a short 14 term rental property from providing specified coverage 15 during certain timeframes except under specified 16 circumstances; requiring a short-term rental network 17 company and its insurer to cooperate with certain 18 claims investigations; providing that the section does 19 not limit the liability of a short-term rental network 20 company under specified circumstances; creating s. 21 627.748, F.S.; defining terms; requiring a 22 transportation network company driver or such company 23 on the driver’s behalf, or a combination thereof, to 24 maintain primary automobile insurance issued by 25 specified insurers with certain coverages in specified 26 amounts during certain timeframes; requiring a 27 transportation network company driver to maintain 28 primary automobile insurance issued by specified 29 insurers with certain coverages in specified amounts 30 during certain timeframes; requiring the 31 transportation network company to provide automobile 32 insurance in the event insurance maintained by the 33 transportation network company driver lapses or does 34 not provide the required coverage; requiring a 35 transportation network company driver to carry proof 36 of certain insurance coverage at all times during his 37 or her use of a personal vehicle and to disclose 38 specified information in the event of an accident; 39 requiring a transportation network company to make 40 certain disclosures to transportation network company 41 drivers; authorizing insurers to exclude certain 42 coverages during specified periods for policies issued 43 to transportation network company drivers for personal 44 vehicles; requiring a transportation network company 45 and certain insurers to cooperate during a claims 46 investigation to facilitate the exchange of specified 47 information; requiring a transportation network 48 company to determine whether an individual’s personal 49 vehicle is subject to a lien before allowing the 50 individual to act as a driver and, if the vehicle is 51 subject to a lien, to verify that the insurance 52 required by this section provides coverage to the 53 lienholder during specified periods; authorizing the 54 Office of Insurance Regulation to adopt rules to 55 implement the section; providing an effective date. 56 57 Be It Enacted by the Legislature of the State of Florida: 58 59 Section 1. Subsection (1) of section 316.646, Florida 60 Statutes, is amended to read: 61 316.646 Security required; proof of security and display 62 thereof.— 63 (1) Any person required by s. 324.022 to maintain property 64 damage liability security, required by s. 324.023 to maintain 65 liability security for bodily injury or death,orrequired by s. 66 627.733 to maintain personal injury protection security on a 67 motor vehicle, or required by s. 627.748(2)(d) to maintain 68 insurance shall have in his or her immediate possession at all 69 times while operating such motor vehicle proper proof of 70 maintenance of the required security. 71 (a) Such proof shall be in a uniform paper or electronic 72 format, as prescribed by the department, a valid insurance 73 policy, an insurance policy binder, a certificate of insurance, 74 or such other proof as may be prescribed by the department. 75 (b)1. The act of presenting to a law enforcement officer an 76 electronic device displaying proof of insurance in an electronic 77 format does not constitute consent for the officer to access any 78 information on the device other than the displayed proof of 79 insurance. 80 2. The person who presents the device to the officer 81 assumes the liability for any resulting damage to the device. 82 Section 2. Section 627.716, Florida Statutes, is created to 83 read: 84 627.716 Short-term rental network company insurance.— 85 (1) For purposes of this section, the term: 86 (a) “Application” means an Internet-enabled application or 87 platform or any similar method that is used to provide rental 88 services to a participating renter and that is owned or used by 89 a short-term rental network company. 90 (b) “Participating lessor” means a person who makes a 91 short-term rental property available through an application to 92 participating renters. 93 (c) “Participating renter” means a person who enters into a 94 short-term rental arrangement through an application. 95 (d) “Short-term rental network company” or “company” means 96 an individual or organization, including, but not limited to, a 97 corporation, limited liability company, partnership, sole 98 proprietorship, or other entity for which participating lessors 99 provide prearranged, short-term rentals for compensation using 100 an application to connect a participating renter with a 101 participating lessor. The term does not include a licensee under 102 part VIII of chapter 468, chapter 475, or part I of chapter 509, 103 an association as defined in s. 718.103 or s. 719.103, a 104 homeowners’ association as defined in s. 720.301, a developer or 105 managing entity as defined in s. 721.05, or other entity that 106 owns, manages, or otherwise controls the short-term rental 107 property of the participating lessor. 108 (e) “Short-term rental network company insurance” means an 109 insurance policy that provides coverage as required by this 110 section at all times during the short-term rental period. 111 (f) “Short-term rental period” means a period of less than 112 30 days or one calendar month, whichever is less, beginning at 113 the time the participating renter first uses or occupies the 114 short-term rental property and ending at the time the 115 participating renter vacates the short-term rental property. 116 (g) “Short-term rental property” means the entirety or any 117 portion of a property which is used for residential occupancy 118 purposes. The term includes, but is not limited to, a 119 condominium, an apartment, a multifamily dwelling, a single 120 family structure, or any other rental unit located in this state 121 which is owned or rented by a participating lessor. The term 122 does not include a public lodging establishment licensed under 123 part I of chapter 509 or a timeshare property as defined in s. 124 721.05. 125 (2) During the short-term rental period, a short-term 126 rental network company shall maintain short-term rental network 127 company insurance as excess coverage, except that such coverage 128 shall be primary to the extent that the participating lessor’s 129 insurance does not provide coverage. The short-term rental 130 network company insurance must: 131 (a) Insure the participating lessor against direct physical 132 loss to the short-term rental property and its contents, 133 exclusive of the property of the participating renter, with 134 limits of at least $1 million per occurrence with a policy 135 period aggregate limit of $2 million for each short-term rental 136 property. 137 (b) Provide liability coverage for personal injury and 138 property damage with limits of at least $1 million which covers 139 the acts and omissions of the short-term rental network company, 140 a participating lessor, and all other persons using or occupying 141 the short-term rental property, except for a participating 142 renter, against claims arising out of the use or occupancy of 143 the short-term rental property by a participating renter and 144 which does not contain an exclusion for co-insureds. 145 (3) A short-term rental network company shall disclose in 146 writing to a participating lessor the insurance coverages and 147 limits of liability that the short-term rental network company 148 provides during the short-term rental period. The company shall 149 advise the participating lessor in writing that the 150 participating lessor’s personal insurance policy may not provide 151 the insurance coverage required by subsection (2). 152 (4) An insurer that provides short-term rental network 153 company insurance shall defend and indemnify in this state the 154 insured in accordance with the policy’s provisions. 155 (5)(a) During the short-term rental period, the 156 participating lessor’s personal insurance policy for the short 157 term rental property may not: 158 1. Be required to provide primary or excess coverage. 159 2. Provide any coverage to the participating lessor, the 160 participating renter, or a third party unless the policy, with 161 or without a separate charge, provides for such coverage or 162 contains an amendment or endorsement to provide such coverage. 163 3. Have any duty to indemnify or defend for liabilities 164 arising during the short-term rental period unless the policy, 165 with or without a separate charge, provides for such duties or 166 contains an amendment or endorsement to provide for such duties. 167 (b) Before or after the short-term rental period, the 168 participating lessor’s personal policy for the short-term rental 169 property may not provide coverage for claims arising from any 170 rental arrangement entered into by a participating renter with 171 the short-term rental company or the participating lessor for 172 the short-term rental property or for acts and omissions related 173 to the rental arrangement unless the policy, with or without a 174 separate charge, provides for such coverage or contains an 175 amendment or endorsement to provide such coverage. 176 (6) In a claims investigation, a short-term rental network 177 company or its insurer shall cooperate with other insurers to 178 facilitate the exchange of information, which must include the 179 number and duration of all short-term rental periods made with 180 respect to the short-term rental property for the 12 months 181 preceding the date of loss. 182 (7) This section does not limit the liability of a short 183 term rental network company arising out of the use or occupancy 184 of short-term rental property by a participating renter for an 185 amount that exceeds the limits specified in subsection (2). 186 Section 3. Section 627.748, Florida Statutes, is created to 187 read: 188 627.748 Transportation network company insurance.— 189 (1) For purposes of this section, the term: 190 (a) “Digital network” means an online-enabled application, 191 software, website, or system offered or used by a transportation 192 network company which enables the prearrangement of rides with 193 transportation network company drivers. 194 (b) “Personal vehicle” means a vehicle, however titled, 195 which is used by a transportation network company driver in 196 connection with providing transportation network company service 197 and that: 198 1. Is owned, leased, or otherwise authorized for use by the 199 transportation network company driver; and 200 2. Is not a taxi, jitney, limousine, or for-hire vehicle as 201 defined in s. 320.01(15). 202 (c) “Prearranged ride” means the provision of 203 transportation by a driver to or on behalf of a rider, beginning 204 when a driver accepts a ride requested by a rider through a 205 digital network controlled by a transportation network company, 206 continuing while the driver transports the rider, and ending 207 when the last rider departs from the personal vehicle. A 208 prearranged ride does not include transportation provided using 209 a taxi, jitney, limousine, for-hire vehicle as defined in s. 210 320.01(15), or street hail services. 211 (d) “Transportation network company” or “company” means a 212 corporation, partnership, sole proprietorship, or other entity 213 operating in this state which uses a digital network to connect 214 transportation network company riders to transportation network 215 company drivers who provide prearranged rides. A transportation 216 network company may not be deemed to control, direct, or manage 217 the personal vehicles or transportation network company drivers 218 that connect to its digital network, unless agreed to in a 219 written contract. A transportation network company does not 220 include an individual, corporation, partnership, sole 221 proprietorship, or other entity arranging nonemergency medical 222 transportation for individuals qualifying for Medicaid or 223 Medicare pursuant to a contract with the state or a managed care 224 organization. 225 (e) “Transportation network company driver” or “driver” 226 means an individual who: 227 1. Receives connections to potential riders and related 228 services from a transportation network company in exchange for 229 any form of compensation, including payment of a fee to the 230 transportation network company; and 231 2. Uses a personal vehicle to offer or provide a 232 prearranged ride to riders upon connection through a digital 233 network controlled by a transportation network company in return 234 for compensation, including payment of a fee. 235 (f) “Transportation network company rider” or “rider” means 236 an individual who directly or indirectly uses a transportation 237 network company’s digital network to connect with a 238 transportation network company driver who provides 239 transportation services to such individual in the driver’s 240 personal vehicle. 241 (2)(a) A transportation network company driver, or a 242 transportation network company on the driver’s behalf, shall 243 maintain primary automobile insurance that recognizes that the 244 driver is a transportation network company driver or that the 245 driver otherwise uses a personal vehicle to transport riders for 246 compensation. Such primary automobile insurance must cover the 247 driver as required under this section, including while the 248 driver is logged on to the transportation network company’s 249 digital network and engaged in a prearranged ride. 250 (b) The following automobile insurance requirements apply 251 while a participating transportation network company driver is 252 logged on to the transportation network company’s digital 253 network and is available to receive transportation requests, but 254 is not engaged in a prearranged ride: 255 1. Primary automobile liability insurance of at least 256 $125,000 for death and bodily injury per person, $250,000 for 257 death and bodily injury per incident, and $25,000 for property 258 damage; and 259 2. Primary automobile insurance that provides the minimum 260 coverage requirements under ss. 627.730-627.7405. 261 (c) While a transportation network company driver is 262 engaged in a prearranged ride, the automobile insurance 263 requirements that apply are primary automobile liability 264 insurance of at least $1 million for death and bodily injury and 265 $50,000 for property damage. 266 (d) The following automobile insurance requirements apply 267 at all times other than the periods specified in paragraph (b) 268 or paragraph (c) if a driver has an agreement with a 269 transportation network company to provide any form of 270 transportation services to riders: 271 1. Primary automobile liability insurance of at least 272 $100,000 for death and bodily injury per person, $200,000 for 273 death and bodily injury per incident, and $25,000 for property 274 damage; and 275 2. Primary automobile insurance that provides the minimum 276 coverage requirements under ss. 627.730-627.7405. 277 (e) The coverage requirements of paragraph (d) shall be 278 satisfied by automobile insurance maintained by the 279 transportation network company driver. The coverage requirements 280 of paragraphs (b) and (c) may be satisfied by any of the 281 following: 282 1. Automobile insurance maintained by the transportation 283 network company driver; 284 2. Automobile insurance maintained by the transportation 285 network company; or 286 3. Any combination of subparagraphs 1. and 2. 287 (f) If automobile insurance maintained by a driver under 288 paragraph (b), paragraph (c), or paragraph (d) has lapsed or 289 does not provide the required coverage, automobile insurance 290 maintained by a transportation network company must provide the 291 coverage required by this section beginning with the first 292 dollar of a claim and must require that the insurer have the 293 duty to defend such claim in this state. 294 (g) Coverage under an automobile insurance policy 295 maintained by the transportation network company may not be 296 dependent on a personal automobile liability insurance policy 297 first denying a claim. 298 (h) Automobile insurance required by this section must be 299 provided by an insurer authorized to do business in this state 300 which is a member of the Florida Insurance Guaranty Association. 301 (i) Automobile insurance satisfying the requirements of 302 this section shall be deemed to satisfy the financial 303 responsibility requirements for a motor vehicle under chapter 304 324 and the security required under s. 627.733. 305 (j) A transportation network company driver shall carry 306 proof of insurance coverage satisfying paragraphs (b), (c), and 307 (d) at all times during his or her use of a personal vehicle. In 308 the event of an accident: 309 1. The driver shall provide the insurance coverage 310 information to the directly involved parties, automobile 311 insurers, and investigating police officers. Proof of financial 312 responsibility may be provided through a digital telephone 313 application under s. 316.646 controlled by a transportation 314 network company. 315 2. The driver, upon request, shall disclose to the directly 316 involved parties, automobile insurers, and investigating police 317 officers whether the driver, at the time of the accident, was 318 logged on to the transportation network company’s digital 319 network or engaged in prearranged ride. 320 (k) Before a driver may accept a request for a prearranged 321 ride on the transportation network company’s digital network, 322 the transportation network company shall disclose in writing to 323 each transportation network company driver each type of: 324 1. Insurance coverage and the limit for each coverage the 325 transportation network company provides; and 326 2. Automobile insurance coverage that the driver must 327 maintain while the driver uses a personal vehicle in connection 328 with the transportation network company. 329 (l) An insurer that provides personal automobile insurance 330 policies under part XI of chapter 627 may exclude from coverage 331 under a policy issued to an owner or operator of a personal 332 vehicle any loss or injury that occurs while a driver is logged 333 on to a transportation network company’s digital network or 334 while a driver is engaged in a prearranged ride. Such right to 335 exclude coverage applies to any coverage under an automobile 336 insurance policy, including, but not limited to: 337 1. Liability coverage for bodily injury and property 338 damage. 339 2. Personal injury protection coverage under s. 627.736. 340 3. Uninsured and underinsured motorist coverage. 341 4. Medical payments coverage. 342 5. Comprehensive physical damage coverage. 343 6. Collision physical damage coverage. 344 (m) The exclusions authorized under paragraph (l) apply 345 notwithstanding any financial responsibility requirements under 346 chapter 324. This section does not require that a personal 347 automobile insurance policy provide coverage while the driver is 348 logged on to the transportation network company’s digital 349 network, while the driver is engaged in a prearranged ride, or 350 while the driver otherwise uses a personal vehicle to transport 351 riders for compensation. However, an insurer may voluntarily 352 elect to provide coverage for such driver’s personal vehicle by 353 contract or endorsement. 354 (n) An insurer that excludes coverage, as authorized under 355 paragraph (l): 356 1. Does not have a duty to defend or indemnify any claim 357 excluded. This section does not invalidate or limit an exclusion 358 contained in a policy, including any policy in use or approved 359 for use in this state before July 1, 2015. 360 2. Has a right of contribution against other insurers that 361 provide automobile insurance to the same driver in satisfaction 362 of the coverage requirements of this section at the time of loss 363 if the insurer defends or indemnifies a claim against a driver 364 which is excluded under the terms of its policy. 365 (o) In a claims investigation, a transportation network 366 company and any insurer potentially providing coverage for such 367 claim under this section shall cooperate to facilitate the 368 exchange of relevant information with directly involved parties 369 and insurers of the transportation network company driver, if 370 applicable. Such information must provide: 371 1. The precise times that a driver logged on and off the 372 transportation network company’s digital network during the 12 373 hour period immediately preceding and immediately after the 374 accident. 375 2. A clear description of the coverage, any exclusions, and 376 limits provided under any automobile insurance maintained under 377 this section. 378 (p) Before allowing an individual to act as a driver on its 379 digital network, a transportation network company shall 380 determine whether the driver’s personal vehicle is subject to a 381 lien. If the personal vehicle is subject to a lien, the 382 transportation network company shall verify that the insurance 383 required by this section provides coverage to the lienholder 384 while the driver is logged into the transportation network 385 company’s digital network and while the driver is providing a 386 prearranged ride. 387 (3) The office may adopt rules to implement this section. 388 Section 4. This act shall take effect January 1, 2016.