SACRAMENTO – Assemblywoman Bonilla’s AB 2293, which protects passengers, drivers and the general public by clarifying insurance coverage for Transportation Network Companies (TNCs) such as Uber and Lyft, was approved yesterday by the Senate with a 30-4 vote and this evening by the Assembly with a 70-0 vote. AB 2293 is now on its way to Governor Brown’s desk where it requires his signature before the bill becomes law.
“AB 2293 is a testament to good public policy. I have worked hard to assure that consumers and TNC drivers are protected, while also allowing this innovative business model to thrive,” said Assemblywoman Susan A. Bonilla (D-Concord). “This bill creates a policy that is both affordable and flexible, but still ensures corporate accountability. My ultimate goal was to demonstrate that business innovation and consumer protection are not mutually exclusive, while also facilitating the maturation of this new industry into our economy.”
AB 2293 Notes:
- This bill would amend the Passenger Charter-party Carriers’ Act to enact specified requirements for liability insurance coverage for transportation network companies (new commercial policies for the industry)
- Transportation network company insurance shall be primary and in the amount of one million dollars ($1,000,000) for death, personal injury, and property damage.
- Transportation network company insurance coverage provided under this subdivision shall also provide for uninsured motorist coverage and underinsured motorist coverage in the amount of one million dollars ($1,000,000) from the moment a passenger enters the vehicle of a participating driver until the passenger exits the vehicle.
- Transportation network company insurances hall be primary and in the amount of at least fifty thousand dollars ($50,000) for death and personal injury per person, one hundred thousand dollars ($100,000) for death and personal injury per incident, and thirty thousand dollars ($30,000) for property damage.
- A transportation network company shall also maintain insurance coverage that provides excess coverage insuring the transportation network company and the driver in the amount ofat least two hundred thousand dollars ($200,000) per occurrence to cover any liability arising from a participating driver using a vehicle in connection with a transportation network company’s online-enabled application or platform within the time periods specified in this subdivision, which liability exceeds the required coverage limits in paragraph (1).
Here is a look at AB 2293:
LEGISLATIVE COUNSEL’S DIGEST
The people of the State of California do enact as follows:
SECTION 1.
Article 7 (commencing with Section 5430) is added to Chapter 8 of Division 2 of the Public Utilities Code, to read:
Article 7. Transportation Network Companies
5430.
Notwithstanding any other provision of this chapter, this article shall apply to transportation network companies.
5431.
(a) As used in this article, a “transportation network company” is an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
5432.
(a) A transportation network company shall disclose in writing to participating drivers, as part of its agreement with those drivers, the insurance coverage and limits of liability that the transportation network company provides while the driver uses a vehicle in connection with a transportation network company’s online-enabled application or platform, and shall advise a participating driver in writing that the driver’s personal automobile insurance policy will not provide coverage because the driver uses a vehicle in connection with a transportation network company’s online-enabled application or platform.
5433.
(a) A transportation network company and any participating driver shall maintain transportation network company insurance as provided in this section.
5434.
(a) Nothing in this section shall be construed to require a private passenger automobile insurance policy to provide primary or excess coverage during the period of time from the moment a participating driver in a transportation network company logs on to the transportation network company’s online-enabled application or platform until the driver logs off the online-enabled application or platform or the passenger exits the vehicle, whichever is later.
5435.
In a claims coverage investigation, a transportation network company or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a participating driver. driver and the precise times that the participating driver logged on and off the transportation network company’s online-enabled application or platform.
5436.
The commission and the Department of Insurance shall collaborate on a study of transportation network company insurance to assess whether coverage requirements are appropriate to the risk of transportation network company services in order to promote data-driven decisions on insurance requirements, and shall report the findings of this study to the Legislature no later than December 31, 2017.
5437.
A transportation network company shall not disclose to a third party any personally identifiable information of a transportation network company passenger unless one of the following applies:
5438.
It is the intent of the Legislature that the Department of Insurance expedite review of any application for approval of transportation network company insurance products, and that these products become available for purchase on or before July 1, 2015.
5439.
Transportation network company insurance that meets the requirements of Section 5433 shall be deemed to satisfy the financial responsibility requirements of Sections 16054 and 16056 of the Vehicle Code.
5440.
The Legislature makes the following findings:
5441.
The Legislature does not intend, and nothing in this article shall be construed, to prohibit the commission from exercising its rulemaking authority in a manner consistent with this article, or to prohibit enforcement activities related to transportation network companies.
5442.
A participating driver of a transportation network company shall carry proof of transportation network company insurance coverage with him or her at all times during his or her use of a vehicle in connection with a transportation network company’s online-enabled application or platform. In the event of an accident, a participating driver shall provide this insurance coverage information to any other party involved in the accident, and to a police officer, upon request.
5443.
Notwithstanding Section 11580.9 of the Insurance Code, or any other law affecting whether one or more policies of insurance that may apply with respect to an occurrence is primary or excess, this article determines the obligations under insurance policies issued to transportation network companies and, if applicable, drivers using a vehicle in connection with a transportation network company’s online-enabled application or platform.
SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.