as amended, Bonilla.
begin deletePrivate passenger motor vehicle insurance coverage: personal vehicle sharing. end delete
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.end delete
This bill would make technical, nonsubstantive changes to those provisions.end delete
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
4amended to read:
(a) A private passenger motor vehicle insured by
6its owner pursuant to a policy of insurance subject to Section
711580.1 or 11580.2 shall not be classified as a commercial vehicle,
8for-hire vehicle, permissive use vehicle, or livery solely because
9its owner allows it to be used for personal vehicle sharing if all of
10the following circumstances apply:
11(1) The personal vehicle sharing is conducted pursuant to a
12personal vehicle sharing program.
13(2) The annual revenue received by the vehicle’s owner that
14was generated by the personal vehicle sharing of the vehicle does
15not exceed the annual expenses of owning and operating the
16vehicle, including depreciation, interest, lease payments, auto loan
17payments, insurance, maintenance, parking, fuel, cleaning,
18automobile repair, and costs associated with personal vehicle
19sharing, including, but not limited to, the installation, operation,
20and maintenance of computer hardware and software, signage
21identifying the vehicle as a personal sharing vehicle, and any fees
22charged by a personal vehicle sharing program.
23(3) The owner of the private passenger motor vehicle does not
24knowingly place the vehicle into commercial use, as defined by
25Section 675.5, by a personal vehicle sharing user while engaged
26in personal vehicle sharing.
27(b) For purposes of this section the following definitions apply:
28(1) “Personal vehicle sharing” means the use of private
29passenger motor vehicles by persons other than the vehicle’s owner,
30in connection with a personal vehicle sharing program.
31(2) “Personal vehicle sharing program” means a legal entity
32qualified to do business in the State of California engaged in the
33business of facilitating the sharing of private passenger vehicles
34for noncommercial use by individuals within the state.
35(3) “Private passenger motor vehicle” means a vehicle that is
36insured, or is subject to being insured, under a personal automobile
37liability insurance policy insuring a single individual or individuals
38residing in the same household, as the named insured, or meets
39the requirements of Section 16058 of the Vehicle Code, but does
40not include a vehicle with fewer than four wheels.
P4 1(c) A personal vehicle sharing program shall, for each vehicle
2that it facilitates the use of, do all of the following:
3(1) During all times that the vehicle is engaged in personal
4vehicle sharing, provide insurance coverages for the vehicle and
5operator of the vehicle that are equal to or greater than the
6insurance coverages maintained by the vehicle owner and reported
7to the personal vehicle sharing program. However, the personal
8vehicle sharing program shall not provide liability coverage less
9than three times the minimum insurance requirements for private
10passenger vehicles. Compliance with the terms and conditions of
11this paragraph shall be deemed to avoid the application of the
12limitation on damage recoveries set forth in Section 3333.4 of the
14(2) Provide the registered owner of the vehicle with a
15Department of Motor Vehicles Form REG 5085 or other suitable
16proof of compliance with the insurance requirements of this section
17and the requirements of the California Financial Responsibility
18Law in Section 1656.2 of the Vehicle Code, a copy of which shall
19be maintained in the vehicle by the vehicle’s registered owner
20during any time when the vehicle is operated by any person other
21than the vehicle’s owner pursuant to a personal vehicle sharing
23(3) Collect, maintain, and make available to the vehicle’s
24the vehicle owner’s primary automobile liability insurer on file
25with the Department of Motor Vehicles, and to any other
26government agency as required by law, at the cost of the personal
27vehicle sharing program, verifiable electronic records that identify
28the date, time, initial and final locations of the vehicle, and miles
29driven when the vehicle is under the control of a person other than
30the vehicle’s owner pursuant to a personal vehicle sharing program.
31(4) Provide the vehicle’s owner and any person that operates
32the vehicle pursuant to a personal vehicle sharing program with a
33disclosure that contains information explaining the terms and
34conditions contained in this section.
35(5) Not knowingly permit the vehicle to be operated for
36commercial use by a personal vehicle sharing user while engaged
37in personal vehicle sharing.
38(6) Use only private passenger vehicles.
39(7) Facilitate the installation, operation, and maintenance of
40computer hardware and software and signage, necessary for a
P5 1vehicle to be used in a personal vehicle sharing program, including
2payment of the cost of damage or theft of that equipment and any
3damage caused to the vehicle by the installation, operation, and
4maintenance of that equipment.
5(d) Notwithstanding any other law or any provision in a private
6passenger motor vehicle owner’s automobile insurance policy, in
7the event of a loss or injury that occurs during a time period when
8the vehicle is under the operation and control of a person, other
9than the vehicle owner, pursuant to a personal vehicle sharing
10program, or otherwise under the control of a personal vehicle
11sharing program, the personal vehicle sharing program shall assume
12all liability of the owner and shall be considered the owner of the
13vehicle for all purposes. Nothing in this section limits the liability
14of the personal vehicle sharing program for its acts or omissions
15that result in injury to any persons as a result of the use or operation
16of a personal vehicle sharing program.
17(e) A personal vehicle sharing program shall continue to be
18liable pursuant to subdivision (d) until both of the following occur:
19(1) The private passenger motor vehicle is returned to a location
20designated by the personal vehicle sharing program.
21(2) The earliest of one of the following occurs:
22(A) The expiration of the time period established for the
23particular use of the vehicle.
24(B) The intent to terminate the personal vehicle sharing use is
25verifiably communicated to the personal vehicle sharing program.
26(C) The vehicle’s owner takes possession and control of the
28(f) The personal vehicle sharing program shall assume liability
29for a claim in which a dispute exists as to who was in control of
30the vehicle when the loss occurred giving rise to the claim, and
31the vehicle’s private passenger motor vehicle insurer shall
32indemnify the personal vehicle sharing program to the extent of
33its obligation under the applicable insurance policy, if it is
34determined that the vehicle’s owner was in control of the vehicle
35at the time of the loss.
36(g) If the owner of the vehicle is named as a defendant in a civil
37action, for a loss or injury that occurs during a time period when
38the vehicle is under the operation and control of a person, other
39than the vehicle’s owner, pursuant to a personal vehicle sharing
40program, or otherwise under the control of a personal vehicle
P6 1sharing program, the personal vehicle sharing program shall have
2the duty to defend and indemnify the vehicle’s owner, subject to
3the provisions of subdivisions (d) and (f).
4(h) Notwithstanding any other law or any provision in a vehicle
5owner’s automobile liability insurance policy, while a private
6passenger motor vehicle is used by a person other than its owner
7pursuant to personal vehicle sharing facilitated through a personal
8vehicle sharing program, all of the following shall apply:
9(1) The insurer of that vehicle on file with the Department of
10Motor Vehicles may exclude any and all coverage afforded
11pursuant to its policy.
12(2) The primary and excess insurer or insurers of the owners,
13operators, and maintainers of the private passenger motor vehicle
14used in a personal vehicle sharing program shall have the right to
15notify an insured that it has no duty to defend or indemnify any
16person or organization for liability for any loss that occurs during
17use of the vehicle in a personal vehicle sharing program.
18(i) No policy of insurance that is subject to Section 11580.1 or
1911580.2 shall be canceled, voided, terminated, rescinded, or
20nonrenewed solely on the basis that the private passenger motor
21vehicle has been made available for personal vehicle sharing
22pursuant to a personal vehicle sharing program that is in
23compliance with the provisions of this section.