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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 drivers providing |
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transportation network services. |
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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. TRANSPORTATION NETWORK SERVICES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1954.001. DEFINITIONS. In this chapter: |
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(1) "Participating driver" means an individual who |
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operates a motor vehicle that is owned, leased, or otherwise |
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authorized for use by the individual and provides transportation |
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network services. |
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(2) "Passenger" means an individual who receives |
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transportation network services. |
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(3) "Transportation network company" means an entity |
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operating in this state that provides prearranged transportation |
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network services for compensation through an online-enabled |
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application or platform that connects a passenger with a |
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participating driver. |
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(4) "Transportation network insurance" means an |
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automobile liability insurance policy that covers a participating |
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driver while the driver is providing transportation network |
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services. |
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(5) "Transportation network services" means |
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transportation of a passenger between points chosen by the |
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passenger and prearranged with a participating driver through the |
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use of a transportation network company's online-enabled |
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application or platform. Unless context otherwise requires, the |
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term includes services beginning at the time the driver logs on to |
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the transportation network company's online-enabled application or |
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platform and ending at the time the driver logs off of the |
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application or platform. |
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Sec. 1954.002. APPLICABILITY OF CHAPTER. This chapter |
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applies to automobile liability insurance policies in this state, |
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including policies issued by a Lloyd's plan, a reciprocal or |
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interinsurance exchange, and a county mutual insurance company. |
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Sec. 1954.003. REQUIRED AND PROHIBITED DISCLOSURES. A |
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transportation network company shall provide to a participating |
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driver a written disclosure, as part of the agreement between the |
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company and the driver, of the company's transportation network |
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insurance policy and the policy's limits of liability. The |
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disclosure must notify the driver that the driver's personal |
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automobile liability insurance policy does not provide coverage to |
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the driver while the driver is providing transportation network |
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services from the time the driver logs on to the company's |
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online-enabled application or platform until the time the driver |
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logs off of the application or platform. |
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SUBCHAPTER B. INSURANCE REQUIREMENTS |
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Sec. 1954.051. INSURANCE REQUIREMENTS IN GENERAL. A |
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transportation network company and a participating driver shall |
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maintain transportation network insurance as provided by this |
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chapter. |
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Sec. 1954.052. NETWORK INSURANCE PRIMARY. Transportation |
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network insurance is the primary insurance as to the participating |
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driver while the driver is providing transportation network |
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services. |
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Sec. 1954.053. REQUIRED POLICY PROVISIONS. (a) Except to |
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the extent of a conflict with this chapter, transportation network |
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insurance coverage must satisfy the requirements of Subchapter D, |
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Chapter 601, Transportation Code. |
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(b) Transportation network insurance must include uninsured |
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or underinsured motorist coverage under Subchapter C, Chapter 1952, |
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and personal injury protection coverage under Subchapter D, Chapter |
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1952. |
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(c) Unless a participating driver's personal motor vehicle |
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liability insurer is also providing transportation network |
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insurance for the driver, transportation network insurance must |
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contain collision physical damage coverage and comprehensive |
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physical damage coverage if the driver's personal automobile |
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liability insurance policy contains those coverages. |
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Sec. 1954.054. INSURANCE REQUIREMENTS: FROM RIDE |
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ACCEPTANCE TO COMPLETION. A transportation network company shall |
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maintain transportation network insurance that covers each |
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participating driver beginning at the time the driver accepts a |
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ride request on the company's online-enabled application or |
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platform and ending at the later of: |
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(1) the time the driver completes the transaction on |
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the application or platform; or |
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(2) the time the passenger is no longer occupying the |
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driver's vehicle. |
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Sec. 1954.055. INSURANCE REQUIREMENTS: BETWEEN RIDES. A |
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transportation network company, a participating driver, or a |
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combination of both shall maintain transportation network |
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insurance that covers each driver for the periods: |
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(1) beginning at the time a driver logs on to the |
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company's online-enabled application or platform and ending at the |
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time the driver accepts a ride request; and |
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(2) beginning at the later of the time the driver |
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completes a transaction on the company's online-enabled |
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application or platform or the time the passenger is no longer |
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occupying the driver's vehicle and ending at the later of the time |
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the driver accepts another ride request on the application or |
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platform or the time the driver logs off of the company's |
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application or platform. |
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Sec. 1954.056. TERMINATION OF COVERAGE. If a |
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transportation network insurance policy is maintained by a |
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participating driver and the coverage terminates for any reason, |
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the driver's transportation network company shall provide coverage |
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as required by this chapter beginning at the time the driver's |
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coverage terminates. |
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Sec. 1954.057. RELATION TO PERSONAL AUTOMOBILE LIABILITY |
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INSURANCE. (a) Coverage under a transportation network insurance |
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policy is not contingent on a participating driver's personal |
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automobile liability insurer initially denying a claim. |
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(b) This chapter does not require a personal automobile |
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liability insurance policy to cover a participating driver when the |
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driver provides transportation network services. |
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(c) Except as expressly provided by the policy or an |
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endorsement to the policy, a participating driver's or motor |
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vehicle owner's personal automobile liability insurance policy |
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does not provide liability insurance coverage or require the |
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insurer to defend or indemnify a driver or vehicle owner while the |
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vehicle is being used to provide transportation network services. |
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An insurer shall charge a separate premium for an endorsement |
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described by this section. |
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(d) An insurer may not offer a personal automobile liability |
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insurance policy or an endorsement to that policy that provides the |
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coverage described by Subsection (c) for a private passenger |
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vehicle or similar vehicle that has a capacity of greater than eight |
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persons. |
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Sec. 1954.058. ASSISTANCE IN CLAIM INVESTIGATION. In an |
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insurance claim investigation, a transportation network company |
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shall assist each insurer involved in the claim by providing |
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information, including the date and time at which an accident |
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occurred and the precise time at which a participating driver |
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logged on to or off of the company's online-enabled application or |
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platform. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, or |
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renewed on or after January 1, 2016. A policy delivered, issued for |
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delivery, or renewed before January 1, 2016, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |