AB 2293, as amended, Bonilla. Transportation network companies: insurance coverage.
Under existingend delete
law, the Passenger Charter-party Carriers’ Act,
begin delete the Public Utilities Commission has adopted rules and regulations relating to public safety risks in the operation of transportation services utilizing transportation network companies. Those regulations define a transportation network company as an organization operating in California that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using their personal vehicles. Existing regulations of the commission require, among other things, a transportation network company to acquire a commercial liability policy for incidents involving transportation network company vehicles and drivers in transit to or during a transportation network company trip.end delete
This bill would similarly define “transportation network company” and would require a transportation network company to disclose in writing to participating drivers, as part of its agreement with those drivers, the insurance coverage and limits of liability provided by the transportation network company and to advise a participating driver in writing that the driver’s personal automobile insurance policy may not provide coverage while the driver makes himself or herself available for transportation network company services.end delete
The bill would require a transportation network company’s insurance policy to apply, as the primary coverage, in the event of a loss or injury when a participating driver is logged on to the transportation network company’s application program.end delete
The bill would also require the transportation network company’s insurance company to defend and indemnify the participating driver and the person to whom the personal motor vehicle is registered in a civil action for a loss or injury that occurs when the personal motor vehicle is made available for transportation network services.end delete
begin deleteno end delete.
State-mandated local program: begin deleteno end delete.
The people of the State of California do enact as follows:
Chapter 8.5 (commencing with Section 5430) is
2added to Division 2 of the Public Utilities Code, to read:
As used in this chapter, a “transportation network
16company” is an organization, including, but not limited to, a
17corporation, partnership, or sole proprietor, operating in California
18that provides prearranged transportation services for compensation
19using an online-enabled application or platform to connect
20passengers with drivers using their personal vehicles.
A transportation network company shall disclose in
23writing to participating drivers, as part of its agreement with those
24drivers, the insurance coverage and limits of liability that the
25transportation network company provides while a driver makes
P4 1himself or herself available for transportation network company
2services, and shall advise a participating driver in writing that the
3driver’s personal automobile insurance policy may not provide
4coverage while the driver makes himself or herself available for
5transportation network company services.
6(2) A transportation network company’s insurance policy is the
7primary policy coverage. If an applicable personal automobile
8insurance policy exists, the coverage of that policy is excess.
For purposes of determining insurance coverage, a
10transportation network company’s insurance policy shall apply in
11the event of a loss or injury when a participating driver logs on to
12the transportation network company’s application program.
13Coverage under the transportation network company’s insurance
14policy ceases when the driver logs off from the transportation
15network company’s application program.
If a participating driver or the person to whom the
17personal motor vehicle is registered is named a party in a civil
18action for a loss or injury that occurs during any time period when
19the personal motor vehicle is made available for transportation
20network services, the transportation network company’s insurance
21company shall have the duty to defend and indemnify the
22participating driver and the person to whom the personal motor
23vehicle is registered.
Notwithstanding Section 11580.9 of the Insurance Code,
9or any other law affecting whether one or more policies of
10insurance that may apply with respect to an occurrence is primary
11or excess, this
begin delete chapterend delete determines the obligations under
12insurance policies issued to transportation network companies and,
13if applicable, drivers providing transportation network services
14for transportation network companies.