Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
SYNOPSIS
Requires delivery network companies to maintain automobile insurance.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning delivery network companies and insurance and supplementing P.L.2017, c.26 (C.39:5H-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Delivery network company" means a corporation, partnership, sole proprietorship, or other entity that operates in this State and uses a digital network to connect a delivery network company customer to a delivery network driver to provide delivery services. A delivery network company shall not be deemed to control, direct, or manage the personal vehicles or delivery network drivers that connect to its digital network, except where agreed to by written contract.
"Delivery network company customer" or "customer" means a person who orders the delivery of goods, where the delivery network driver delivers the goods at the direction of the customer.
"Delivery network driver" or "driver" means an individual who provides delivery services through a delivery network company's digital network using a personal vehicle.
"Digital network" means any online-enabled application, software, website, or system offered or utilized by a delivery network company that enables deliveries with delivery network drivers.
"Delivery available period" means the period when a driver:
(1) has logged on to a digital network and is available to receive requests to provide delivery services from a delivery network company;
(2) is operating a personal vehicle; and
(3) is not providing delivery services or operating in the delivery service period.
"Delivery services" means the fulfillment of delivery requests made by a customer through a digital network, including the pickup of any good and the delivery of the good to a customer by a delivery network driver. Delivery services may include a series of deliveries to different customers.
"Delivery service period" means the period:
(1) beginning when a driver starts operating a personal vehicle enroute to pick up goods for a delivery or series of deliveries as documented via a digital network controlled by a delivery network company;
(2) continuing while the driver transports the requested deliveries; and
(3) ending upon delivery of the requested good to:
(a) the customer or the last customer in a series of deliveries; or
(b) a location designated by the delivery network company, including for purposes of returning the good.
"Personal vehicle" means a vehicle that is:
(1) used by a delivery network driver to provide delivery services via a digital network; and
(2) owned, leased, or otherwise authorized for use by the delivery network driver.
2. Nothing in this act limits the scope of federal or State law regarding delivery or transport of goods. Deliveries made pursuant to this act that are subject to any other law shall also comply with the requirements of that law. In the event of a conflict between this act and another law dealing with the delivery or transport of goods, the other law shall prevail.
3. a. A delivery network company shall ensure that, during the delivery available period, if it applies, and during the delivery service period, primary automobile liability insurance is in place that recognizes that the driver is a delivery network driver or that does not exclude coverage for use of a personal vehicle to provide deliveries.
b. During the delivery service period and delivery available period, the delivery network driver, delivery network company, or any combination of the two shall maintain insurance that insures the driver for liability to third parties of:
(1) not less than $50,000 for damages arising out of bodily injury sustained by any one person in an accident, not less than $100,000 for damages arising out of bodily injury sustained by all persons injured in an accident, and not less than $25,000 for all damages arising out of damage to or destruction of property in an accident;
(2) primary personal injury protection benefits that provide coverage amounts selected pursuant to section 4 of P.L.1972, c.70 (C.39:6A-4); and
(3) uninsured and underinsured motorist coverage to the extent required pursuant to section 2 of P.L.1968, c.385 (C.17:28-1.1).
c. If the insurance coverage maintained by a delivery network driver has lapsed or does not provide the coverage required pursuant to subsections a. and b. of this section, insurance maintained by the delivery network company shall provide the coverage required by subsections a. and b. of this section beginning with the first dollar of a claim and the insurance maintained by the delivery network company shall have the duty to defend the claim.
d. Coverage under an automobile insurance policy maintained by the delivery network company shall not be dependent upon another motor vehicle liability insurer first denying a claim, nor shall another motor vehicle liability insurance policy be required to first deny a claim.
e. Insurance coverage required under this section may be obtained from an insurance company licensed to transact business under the insurance laws of this State or by an eligible surplus lines insurer under section 11 of P.L.1960, c.32 (C.17:22-6.45).
f. The coverage required pursuant to subsections a. and b. of this section shall be deemed to meet the financial responsibility requirements of the "Motor Vehicle Security-Responsibility Law," P.L.1952, c.173 (C.39:6-23 et seq.), P.L.1972, c.197 (C.39:6B-1 et seq.), and P.L.1972, c.70 (C.39:6A-1 et seq.).
g. A delivery network driver shall carry proof of insurance required pursuant to subsections a. and b. of this section at all times while using a personal vehicle in connection with a digital network. In the event of an accident, a delivery network driver shall, upon request, provide insurance coverage information to the directly interested parties, automobile insurers, and investigating law enforcement officers.
The insurance coverage information may be displayed or provided in either paper or electronic form as provided pursuant to R.S.39:3-29. A delivery network driver shall, upon request, disclose to the directly interested parties, automobile insurers, and investigating law enforcement officers whether the driver was operating during the delivery available period or the delivery service period at the time of the accident.
h. In a claims coverage investigation, a delivery network company or its insurer shall cooperate with all insurers that are involved in the claims coverage investigation to facilitate the exchange of information and shall immediately provide upon request by directly involved parties or any insurer the precise times that a delivery network driver began and ended the delivery available period or the delivery service period on the delivery network company's digital network in the 12-hour period immediately preceding the accident and in the 12-hour period immediately following the accident. Insurers potentially providing the coverage required pursuant to section 3 of this act shall disclose upon request by any other such insurer involved in the particular claim, the applicable coverages, exclusions, and limits provided under any automobile insurance maintained in order to satisfy the requirements of section 3 of this act.
i. The insurer or insurers of a delivery network company providing coverage under subsections a. and b. of this section shall assume primary liability for a claim when a dispute exists as to when the delivery available period or the delivery service period began or ended and the delivery network company does not have available, did not retain, or fails to provide the information required by subsection g. of this section.
4. A delivery network company shall not permit a delivery network driver to engage in delivery services on the delivery network company's digital network until the delivery network company discloses in writing to the driver:
a. the insurance coverage, including the types of coverage and the limits for each coverage, that the delivery network company provides while the driver uses a personal vehicle in connection with a delivery network company's digital network; and
b. that the driver's own automobile insurance policy might not provide any coverage during the delivery available period, if it applies, or the delivery service period.
5. a. An authorized insurer that writes motor vehicle liability insurance in the State may exclude any and all coverage and the duty to defend or indemnify for any injury or loss that occurs during the delivery available period and the delivery service period, including but not limited to:
(1) liability coverage for bodily injury and property damage;
(2) personal injury protection coverage pursuant to section 4 of P.L.1972, c.70 (C.39:6A-4);
(3) uninsured and underinsured motorist coverage pursuant to section 2 of P.L.1968, c.385 (C.17:28-1.1);
(4) comprehensive physical damage coverage; and
(5) collision physical damage coverage.
b. Nothing in this act invalidates or limits an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use that excludes coverage for motor vehicles used for delivery or for any business use.
Nothing in this act invalidates, limits or restricts an insurer's ability under existing law to underwrite any insurance policy. Nothing in this act invalidates, limits or restricts an insurer's ability under existing law to cancel and non-renew policies.
c. A motor vehicle liability insurer that defends or indemnifies a claim against a delivery network driver that is excluded under the terms of its policy shall have the right to seek recovery against the insurer providing coverage under subsections a. and b. of section 3 of this act if the claim:
(1) occurs during the delivery available period or the delivery service period; and
(2) is excluded under the terms of its policy.
6. This act shall take effect on the first day of the 13th month next following enactment, except the Commissioner of Banking and Insurance may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill requires delivery network companies and delivery network company drivers to maintain certain levels of automobile insurance. Under the bill, a "delivery network company" means a corporation, partnership, sole proprietorship, or other entity that operates in New Jersey and uses a digital network to connect a delivery network company customer to a delivery network driver to provide delivery services.
The bill requires delivery network companies to ensure that, during the delivery available period, if it applies, and during the delivery service period, primary automobile liability insurance is in place that recognizes that the driver is a delivery network driver or that does not exclude coverage for use of a personal vehicle to provide deliveries.
The bill provides that, during the delivery service period and delivery available period, as those terms are defined in the bill, the delivery network driver, delivery network company, or any combination of the two is to maintain insurance that insures the driver for liability to third parties of:
(1) not less than $50,000 for damages arising out of bodily injury sustained by any one person in an accident, not less than $100,000 for damages arising out of bodily injury sustained by all persons injured in an accident, and not less than $25,000 for all damages arising out of damage to or destruction of property in an accident
(2) primary personal injury protection benefits that provide coverage amounts selected pursuant to New Jersey law; and
(3) uninsured and underinsured motorist coverage to the extent required pursuant to New Jersey law.
Under the bill, if the insurance coverage maintained by a delivery network driver has lapsed or does not provide the required coverage, insurance maintained by the delivery network company is to provide the coverage required by the bill beginning with the first dollar of a claim and the insurance maintained by the delivery network company shall have the duty to defend the claim.
The bill requires a delivery network driver to carry proof of insurance required pursuant to the bill at all times while using a personal vehicle in connection with a digital network.
The bill provides that a delivery network company is not to permit a delivery network driver to engage in delivery services on the delivery network company's digital network until the delivery network company makes certain disclosures to the driver.