AB 2293, as introduced, Bonilla. Private passenger motor vehicle insurance coverage: personal vehicle sharing.
Existing law prohibits a private passenger motor vehicle, as defined, from being classified for insurance purposes as a commercial, for-hire, permissive use vehicle, or livery solely on the basis of it being used for personal vehicle sharing, as defined, if the annual revenue received by the vehicle’s owner that is generated by personal vehicle sharing does not exceed the annual expenses of owning and operating the vehicle and the personal vehicle sharing is conducted pursuant to a personal vehicle sharing program.
This bill would make technical, nonsubstantive changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 11580.24 of the Insurance Code is
2amended to read:
begin deleteNo end deleteprivate passenger motor vehicle insured
4by its owner pursuant to a policy of insurance subject to Section
P2 111580.1 or 11580.2 shall be classified as a commercial vehicle,
2for-hire vehicle, permissive use vehicle, or livery solely because
3its owner allows it to be used for personal vehicle sharing
begin delete as long all of the following
5(1) The personal vehicle sharing is conducted pursuant to a
6personal vehicle sharing program.
7(2) The annual revenue received by the vehicle’s owner
begin delete whichend delete
8 was generated by the personal vehicle sharing of the vehicle
9does not exceed the annual expenses of owning and operating the
10vehicle, including depreciation, interest, lease payments, auto loan
11payments, insurance, maintenance, parking, fuel, cleaning,
12automobile repair, and costs associated with personal vehicle
13sharing, including, but not limited to, the installation, operation,
14and maintenance of computer hardware and software, signage
15identifying the vehicle as a personal sharing vehicle, and any fees
16charged by a personal vehicle sharing program.
17(3) The owner of the private passenger motor vehicle does not
18knowingly place the vehicle into commercial use, as defined by
19Section 675.5, by a personal vehicle sharing user while engaged
20in personal vehicle sharing.
21(b) For purposes of this section the following definitions apply:
22(1) “Personal vehicle sharing” means the use of private
23passenger motor vehicles by persons other than the vehicle’s owner,
24in connection with a personal vehicle sharing program.
25(2) “Personal vehicle sharing program” means a legal entity
26qualified to do business in the State of California engaged in the
27business of facilitating the sharing of private passenger vehicles
28for noncommercial use by individuals within the state.
29(3) “Private passenger motor vehicle” means a vehicle that is
30insured, or is subject to being insured, under a personal automobile
31liability insurance policy insuring a single individual or individuals
32residing in the same household, as the named insured, or meets
33the requirements of Section 16058 of the Vehicle Code, but does
34not include a vehicle with fewer than four wheels.
35(c) A personal vehicle sharing program shall, for each vehicle
36that it facilitates the use of, do all of the following:
37(1) During all times that the vehicle is engaged in personal
38vehicle sharing, provide insurance coverages for the vehicle and
39operator of the vehicle that are equal to or greater than the
40insurance coverages maintained by the vehicle owner and reported
P3 1to the personal vehicle sharing program. However, the personal
2vehicle sharing program shall not provide liability coverage less
3than three times the minimum insurance requirements for private
4passenger vehicles. Compliance with the terms and conditions of
5this paragraph shall be deemed to avoid the application of the
6limitation on damage recoveries set forth in Section 3333.4 of the
8(2) Provide the registered owner of the vehicle with a
9Department of Motor Vehicles Form REG 5085 or other suitable
10proof of compliance with the insurance requirements of this section
11and the requirements of the California Financial Responsibility
12Law in Section 1656.2 of the Vehicle Code, a copy of which shall
13be maintained in the vehicle by the vehicle’s registered owner
14during any time when the vehicle is operated by any person other
15than the vehicle’s owner pursuant to a personal vehicle sharing
17(3) Collect, maintain, and make available to the vehicle’s
18the vehicle owner’s primary automobile liability insurer on file
19with the Department of Motor Vehicles, and to any other
20government agency as required by law, at the cost of the personal
21vehicle sharing program, verifiable electronic records that identify
22the date, time, initial and final locations of the vehicle, and miles
23driven when the vehicle is under the control of a person other than
24the vehicle’s owner pursuant to a personal vehicle sharing program.
25(4) Provide the vehicle’s owner and any person that operates
26the vehicle pursuant to a personal vehicle sharing program with a
27disclosure that contains information explaining the terms and
28conditions contained in this section.
29(5) Not knowingly permit the vehicle to be operated for
30commercial use by a personal vehicle sharing user while engaged
31in personal vehicle sharing.
32(6) Use only private passenger vehicles.
33(7) Facilitate the installation, operation, and maintenance of
34computer hardware and software and signage, necessary for a
35vehicle to be used in a personal vehicle sharing program, including
36payment of the cost of damage or theft of that equipment and any
37damage caused to the vehicle by the installation, operation, and
38maintenance of that equipment.
39(d) Notwithstanding any other
begin delete provision ofend delete law or any provision
40in a private passenger motor vehicle owner’s automobile insurance
P4 1policy, in the event of a loss or injury that occurs during
begin delete anyend delete
2 time period when the vehicle is under the operation and control of
3a person, other than the vehicle owner, pursuant to a personal
4vehicle sharing program, or otherwise under the control of a
5personal vehicle sharing program, the personal vehicle sharing
6program shall assume all liability of the owner and shall be
7considered the owner of the vehicle for all purposes. Nothing in
8this section limits the liability of the personal vehicle sharing
9program for its acts or omissions that result in injury to any persons
10as a result of the use or operation of a personal vehicle sharing
12(e) A personal vehicle sharing program shall continue to be
13liable pursuant to subdivision (d) until both of the following occur:
14(1) The private passenger motor vehicle is returned to a location
15designated by the personal vehicle sharing program.
16(2) The earliest of one of the following occurs:
17(A) The expiration of the time period established for the
18particular use of the vehicle.
19(B) The intent to terminate the personal vehicle sharing use is
20verifiably communicated to the personal vehicle sharing program.
21(C) The vehicle’s owner takes possession and control of the
23(f) The personal vehicle sharing program shall assume liability
24for a claim in which a dispute exists as to who was in control of
25the vehicle when the loss occurred giving rise to the claim, and
26the vehicle’s private passenger motor vehicle insurer shall
27indemnify the personal vehicle sharing program to the extent of
28its obligation under the applicable insurance policy, if it is
29determined that the vehicle’s owner was in control of the vehicle
30at the time of the loss.
begin deleteIn the event that end deletethe owner of the vehicle is named as a
32defendant in a civil action, for a loss or injury that occurs during
begin delete anyend delete time period when the vehicle is under the operation and
34control of a person, other than the vehicle’s owner, pursuant to a
35personal vehicle sharing program, or otherwise under the control
36of a personal vehicle sharing program, the personal vehicle sharing
37program shall have the duty to defend and indemnify the vehicle’s
38 owner, subject to the provisions of subdivisions (d) and (f).
39(h) Notwithstanding any other
begin delete provision ofend delete law or any provision
40in a vehicle owner’s automobile liability insurance policy, while
P5 1a private passenger motor vehicle is used by a person other than
2its owner pursuant to personal vehicle sharing facilitated through
3a personal vehicle sharing program, all of the following shall apply:
4(1) The insurer of that vehicle on file with the Department of
5Motor Vehicles may exclude any and all coverage afforded
6pursuant to its policy.
7(2) The primary and excess insurer or insurers of the owners,
8operators, and maintainers of the private passenger motor vehicle
9used in a personal vehicle sharing program shall have the right to
10notify an insured that it has no duty to defend or indemnify any
11person or organization for liability for any loss that occurs during
12use of the vehicle in a personal vehicle sharing program.
13(i) No policy of insurance that is subject to Section 11580.1 or
1411580.2 shall be canceled, voided, terminated, rescinded, or
15nonrenewed solely on the basis that the private passenger motor
16vehicle has been made available for personal vehicle sharing
17pursuant to a personal vehicle sharing program that is in
18compliance with the provisions of this section.