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, or required 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.