Bill Text: MS HB1382 | 2016 | Regular Session | Introduced
Bill Title: Transportation network drivers and companies; require certain automobile insurance for.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-23 - Died In Committee [HB1382 Detail]
Download: Mississippi-2016-HB1382-Introduced.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Transportation
By: Representative Busby
House Bill 1382
AN ACT TO REGULATE INSURANCE REQUIREMENTS FOR TRANSPORTATION NETWORK COMPANIES AND TRANSPORTATION NETWORK DRIVERS; TO DEFINE TERMS USED IN THE ACT; TO REQUIRE TRANSPORTATION NETWORK COMPANY DRIVERS, OR TRANSPORTATION NETWORK COMPANIES ON THE DRIVER'S BEHALF, TO MAINTAIN PRIMARY AUTOMOBILE INSURANCE SATISFYING CERTAIN REQUIREMENTS; TO REQUIRE CERTAIN DISCLOSURES BY THE TRANSPORTATION NETWORK COMPANIES TO THE DRIVERS; TO AUTHORIZE INSURERS TO EXCLUDE COVERAGE FOR ANY LOSS OR INJURY THAT OCCURS WHILE A TRANSPORTATION NETWORK COMPANY DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK OR WHILE THE DRIVER PROVIDES A PREARRANGED RIDE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act, unless the context clearly indicates otherwise:
(a) "Personal vehicle" means a vehicle that is:
(i) Used by a TNC driver to provide a prearranged ride;
(ii) Owned, leased or otherwise authorized for use by the transportation network company driver; and
(iii) Not a taxicab, limousine or other hire vehicle.
(b) "Digital network" means any online-enabled application, software, website or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.
(c) "Transportation network company" means a corporation, partnership, sole proprietorship or other entity that is operating in Mississippi that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides. A transportation network company shall not be deemed to control, direct or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract.
(d) "Transportation network company (TNC) driver" or "driver" means an individual who:
(i) Receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and
(ii) Uses a personal vehicle to offer or provide a prearranged ride to TNC riders upon connection through a digital network controlled by a transportation network company and in exchange for compensation or payment of a fee.
(e) "Transportation network company (TNC) rider" or "rider" means an individual or persons who use a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.
(f) "Prearranged ride" means the provision of transportation by a TNC driver to a TNC rider:
(i) Beginning when a TNC driver accepts a TNC rider's request for a ride through a digital network controlled by a transportation network company;
(ii) Continuing while the TNC driver transports the requesting TNC rider; and
(iii) Ending when the last requesting TNC rider departs from the personal vehicle.
(g) The term "prearranged ride" does not include transportation provided through any of the following:
(i) Shared expense carpool or vanpool arrangements;
(ii) Use of a taxicab, limousine or other hire vehicle; and
(iii) A regional transportation company or licensed motor carrier.
SECTION 2. (1) A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport riders for compensation and covers the driver:
(a) While the driver is logged on to the transportation network company's digital network; or
(b) While the driver is engaged in a prearranged ride.
(2) The following automobile insurance requirements shall apply while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride:
(a) Primary automobile liability insurance in the amount of at least Fifty Thousand Dollars ($50,000.00) for death and bodily injury per person, One Hundred Thousand Dollars ($100,000.00) for death and bodily injury per incident, and Twenty-five Thousand Dollars ($25,000.00) for property damage;
uninsured motorist coverage as required by Section 83-11-101 with the same limits; and medical payments with limits no less than Five Thousand Dollars ($5,000.00).
(b) The coverage requirements of this subsection (2) may be satisfied by any of the following:
(i) Automobile insurance maintained by the transportation network company driver; or
(ii) Automobile insurance maintained by the transportation network company; or
(iii) Any combination of subparagraphs (i) and (ii).
(3) The following automobile insurance requirements shall apply while a transportation network company driver is engaged in a prearranged ride:
(a) Primary automobile liability insurance that provides at least One Million Dollars ($1,000,000.00) for death, bodily injury and property damage; uninsured motorist coverage with the same limits; and medical payments with limits no less than Five Thousand Dollars ($5,000.00).
(b) The coverage requirements of this subsection (3) may be satisfied by any of the following:
(i) Automobile insurance maintained by the transportation network company driver; or
(ii) Automobile insurance maintained by the transportation network company; or
(iii) Any combination of subparagraphs (i) and (ii).
(4) If insurance maintained by the driver in subsection (2) or (3) is not in place, has lapsed or does not provide the required coverage, insurance maintained by a transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim and have the duty to defend such claim.
(5) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.
(6) Insurance required under this section may be placed with an insurer licensed in Mississippi, or with a surplus lines insurer eligible to write coverage in Mississippi that has a credit rating of no less than "A-" from A.M. Best or "A" from Demotech or similar rating from another rating agency recognized by the Department of Insurance.
(7) Insurance satisfying the requirements of this section shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under the Mississippi Motor Vehicle Safety Responsibility Law, as amended.
(8) A transportation network company driver shall carry proof of coverage satisfying subsections (2) and (3) with him at all times during his use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, automobile insurers and investigating police officers, upon request. Upon such request, a transportation network company driver or a transportation network company, or both, shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether such driver was logged on to the transportation network company's digital network or on a prearranged ride at the time of an accident.
SECTION 3. (1) The transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network:
(a) The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and
(b) That the transportation network company driver's own automobile insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride, depending on its terms.
(2) In any accident or claims coverage investigation, transportation network companies, transportation network company drivers, any insurers of the transportation network company and any insurers of the transportation network company drivers shall immediately provide upon request by any party incurring injury or loss in the accident; or by any insurer, or potential insurer, for any person incurring injury or loss from the accident; or by any person alleged to be at fault in the accident; or the insurer, or potential insurer, for any person alleged to be at fault in the accident:
(a) The precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident;
(b) The applicable coverages, exclusions and limits provided under any automobile insurance maintained in order to satisfy the requirements of Section 2 of this act.
SECTION 4. (1) Insurers that write automobile insurance in Mississippi may exclude any and all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride. This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to:
(a) Liability coverage for bodily injury and property damage;
(b) Uninsured and underinsured motorist coverage;
(c) Medical payments coverage;
(d) Comprehensive physical damage coverage; and
(e) Collision physical damage coverage.
Such exclusions shall apply notwithstanding any requirement under the Mississippi Motor Vehicle Safety Responsibility Law and Mississippi Uninsured Motorist Coverage laws in Section 83-11-101 et seq. Nothing in this act implies or requires that a personal automobile insurance policy provide coverage while the driver is logged on to the transportation network company's digital network, while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to transport riders for compensation. Nothing in this act shall be construed as to require an insurer to use any particular policy language or reference to this section in order to exclude any and all coverage for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride. Nothing in this act shall be deemed to preclude an insurer from providing primary or excess coverage for the transportation network company driver's vehicle, if it so chose to do so by contract or endorsement.
(2) Automobile insurers that exclude the coverage described in Section 2 of this act shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this act shall be deemed to invalidate or limit an exclusion contained in a policy including any policy in use or approved for use in Mississippi prior to the enactment of this law that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of Section 2 of this act at the time of loss.
SECTION 5. This act shall take effect and be in force from and after July 1, 2016.
