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A BILL TO BE ENTITLED
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AN ACT
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relating to automobile liability insurance for transportation |
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network company drivers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 10, Insurance Code, is amended |
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by adding Chapter 1954 to read as follows: |
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CHAPTER 1954. INSURANCE FOR TRANSPORTATION NETWORK COMPANY DRIVERS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1954.001. DEFINITIONS. In this chapter: |
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(1) "Digital network" means any online-enabled |
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application, software, website, or system offered or used by a |
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transportation network company that enables a prearranged ride with |
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a transportation network company driver. |
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(2) "Personal vehicle" means a vehicle that is used by |
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a transportation network company driver and is: |
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(A) owned, leased, or otherwise authorized for |
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use by the driver; and |
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(B) not a taxicab, limousine, or similar for-hire |
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vehicle. |
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(3) "Prearranged ride" means transportation provided |
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by a transportation network company driver to a transportation |
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network company rider, beginning at the time a driver accepts a ride |
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requested by a rider through a digital network controlled by a |
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transportation network company and ending at the time the last |
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requesting rider departs from the driver's personal vehicle. The |
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term does not include transportation provided using a taxicab, |
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limousine, or similar for-hire vehicle. |
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(4) "Transportation network company" means a |
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corporation, partnership, sole proprietorship, or other entity |
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operating in this state that uses a digital network to connect a |
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transportation network company rider to a transportation network |
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company driver for a prearranged ride. |
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(5) "Transportation network company driver" means an |
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individual who: |
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(A) receives connections to potential |
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transportation network company riders and related services from a |
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transportation network company in exchange for payment of a fee to |
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the company; and |
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(B) uses a personal vehicle to offer or provide a |
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prearranged ride to a transportation network company rider on |
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connection with the rider through a digital network controlled by |
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the company in exchange for compensation or payment of a fee. |
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(6) "Transportation network company rider" means an |
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individual who uses a transportation network company's digital |
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network to connect with a transportation network company driver who |
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provides a prearranged ride to the individual in the driver's |
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personal vehicle between points chosen by the individual. |
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Sec. 1954.002. APPLICABILITY OF CHAPTER. This chapter |
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applies to automobile insurance policies in this state, including |
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policies issued by a Lloyd's plan, a reciprocal or interinsurance |
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exchange, and a county mutual insurance company. |
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SUBCHAPTER B. INSURANCE REQUIREMENTS |
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Sec. 1954.051. GENERAL INSURANCE REQUIREMENT. (a) A |
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transportation network company driver or transportation network |
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company on the driver's behalf shall maintain primary automobile |
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insurance as required by this subchapter. |
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(b) Insurance maintained under this subchapter must allow a |
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transportation network company driver to use a personal vehicle to |
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transport transportation network company riders for compensation |
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and cover the driver while: |
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(1) the driver is logged on to the transportation |
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network company's digital network as provided by Section 1954.052; |
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or |
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(2) the driver is engaged in a prearranged ride as |
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provided by Section 1954.053. |
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(c) Insurance maintained under this subchapter must comply |
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with the law applicable to personal automobile insurance in this |
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state, including this subtitle and Chapter 601, Transportation |
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Code. |
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(d) The coverage requirements of this subchapter may be |
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satisfied by: |
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(1) automobile insurance maintained by the |
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transportation network company driver; |
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(2) automobile insurance maintained by the |
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transportation network company; or |
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(3) a combination of Subdivisions (1) and (2). |
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(e) Insurance required under this subchapter may be placed |
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with an automobile insurer authorized to engage in business in this |
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state or with an eligible surplus lines insurer. |
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Sec. 1954.052. INSURANCE REQUIREMENTS: BETWEEN PREARRANGED |
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RIDES. At the time a transportation network company driver is |
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logged on to the transportation network company's digital network |
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and is available to receive transportation network requests but is |
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not engaged in a prearranged ride, the minimum amounts of |
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automobile insurance coverage are: |
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(1) $50,000 for bodily injury to or death for each |
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person in an incident; |
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(2) $100,000 for bodily injury to or death of a person |
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per incident; and |
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(3) $25,000 for damage to or destruction of property |
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of others in an incident. |
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Sec. 1954.053. INSURANCE REQUIREMENTS: DURING PREARRANGED |
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RIDES. At the time a transportation network company driver is |
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engaged in a prearranged ride, the automobile insurance policy must |
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provide, at minimum, coverage with a total aggregate limit of |
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liability of $1 million for death, bodily injury, and property |
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damage for each incident. |
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Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an |
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insurance policy maintained by a transportation network company |
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driver under this subchapter has lapsed or does not provide the |
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coverage required by this subchapter, the transportation network |
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company shall provide the coverage required by this subchapter |
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beginning with the first dollar of a claim against the driver. |
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Sec. 1954.055. RELATION TO PERSONAL AUTOMOBILE INSURANCE. |
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Coverage under an automobile insurance policy maintained by the |
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transportation network company is not contingent on a |
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transportation network company driver's personal automobile |
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insurer initially denying a claim. |
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Sec. 1954.056. FINANCIAL RESPONSIBILITY. (a) Insurance |
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satisfying the requirements of this subchapter satisfies the |
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financial responsibility requirement for an automobile under |
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Chapter 601, Transportation Code. |
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(b) A transportation network company driver shall carry |
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proof of insurance that satisfies Sections 1954.052 and 1954.053 |
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with the driver when the driver uses a vehicle in connection with a |
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transportation network company's digital network. In the event of |
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an accident, a driver shall provide the proof of insurance to a |
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directly interested person, automobile insurer, and investigating |
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peace officer on request under Section 601.053, Transportation |
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Code. On request, a driver shall also disclose to a directly |
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interested person, automobile insurer, and investigating peace |
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officer whether, at the time of the accident, the driver was: |
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(1) logged on to the company's digital network; or |
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(2) engaged in a prearranged ride. |
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SUBCHAPTER C. RELATIONSHIP BETWEEN TRANSPORTATION NETWORK COMPANY |
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AND TRANSPORTATION NETWORK COMPANY DRIVER |
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Sec. 1954.101. REQUIRED DISCLOSURES. Before a |
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transportation network company driver may accept a request for a |
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prearranged ride on a transportation network company's digital |
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network, the company shall disclose in writing the following: |
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(1) the insurance policy, including the types of |
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coverage and the limits for the policy, that the company provides |
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while a driver uses a personal vehicle in connection with the |
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company's digital network; and |
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(2) that the driver's personal automobile insurance |
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policy may not provide coverage, depending on the policy's terms, |
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while the driver is logged on to the company's digital network and |
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is available to receive transportation requests or is engaged in a |
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prearranged ride. |
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Sec. 1954.102. CONTROL OF TRANSPORTATION NETWORK COMPANY |
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DRIVERS. A transportation network company does not control, |
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direct, or manage a personal vehicle or a transportation network |
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company driver who connects to the company's digital network except |
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as agreed by written contract. |
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SUBCHAPTER D. PERSONAL AUTOMOBILE INSURANCE |
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Sec. 1954.151. AUTHORIZED EXCLUSIONS FROM COVERAGE. (a) |
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An insurer may exclude from coverage under a personal automobile |
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insurance policy issued to an owner or operator of a personal |
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vehicle any loss or injury that occurs while a transportation |
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network company driver using the personal vehicle: |
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(1) is logged on to a transportation network company's |
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digital network; or |
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(2) is engaged in a prearranged ride. |
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(b) Subsection (a) applies to any coverage included in a |
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personal automobile insurance policy, including: |
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(1) liability coverage for bodily injury and property |
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damage; |
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(2) personal injury protection coverage under |
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Subchapter D, Chapter 1952; |
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(3) uninsured and underinsured motorist coverage; |
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(4) medical payment coverage; |
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(5) comprehensive physical damage coverage; and |
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(6) collision physical damage coverage. |
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(c) An exclusion authorized under this section applies |
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notwithstanding a financial responsibility requirement under |
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Chapter 601, Transportation Code. |
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(d) This subchapter may not be construed to invalidate or |
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limit an exclusion contained in a policy form, including a policy |
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form in use or approved for use in this state before September 1, |
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2015, that excludes coverage for automobiles used to carry persons |
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or property for compensation or available for hire by the public. |
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Sec. 1954.152. COVERAGE UNDER PERSONAL AUTOMOBILE |
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INSURANCE NOT REQUIRED. (a) This subchapter does not require a |
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personal automobile insurance policy to cover a transportation |
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network company driver while: |
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(1) the driver is logged on to a transportation |
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network company's digital network; |
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(2) the driver is engaged in a prearranged ride; or |
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(3) the driver otherwise uses a vehicle to transport |
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passengers for compensation. |
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(b) This section does not prevent an insurer from providing |
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coverage that may be excluded under this section if the insurer |
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elects to provide the coverage in the policy or by endorsement. |
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Sec. 1954.153. DEFENSE OR INDEMNIFICATION OF CLAIM. (a) An |
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automobile insurer that issues a personal automobile insurance |
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policy that includes an exclusion from coverage authorized by |
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Section 1954.151 does not have a duty to defend or indemnify a claim |
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arising from an event subject to the exclusion. |
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(b) An automobile insurer that defends or indemnifies a |
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claim against a transportation network company driver for which |
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coverage is excluded under the terms of the policy as authorized by |
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this subchapter has a right of contribution against another insurer |
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that provides automobile insurance to the driver in satisfaction of |
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the coverage requirements under Section 1954.052 or 1954.053, as |
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applicable. |
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Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an |
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insurance claim investigation, a transportation network company |
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and any insurer providing coverage under Subchapter B shall assist |
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each insurer involved in the claim by providing information to |
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directly interested persons and an insurer of the transportation |
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network company driver. Information provided under this section |
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must include: |
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(1) the precise times that a driver logged on and off |
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of the transportation network company's digital network in the |
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12-hour period immediately preceding and the 12-hour period |
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immediately following the accident; and |
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(2) a clear description of the coverage, exclusions, |
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and limits provided under an automobile insurance policy maintained |
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under Subchapter B. |
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SECTION 2. This Act takes effect September 1, 2015. |