AB 2293, as amended, Bonilla. Transportation network companies: insurance coverage.
Existing law, the Passenger Charter-party Carriers’ Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate, from the commission, except as specified. The act requires a charter-party carrier to, among other things, comply with specified vehicle identification and accident liability protection requirements. A violation of the act is generally a misdemeanor, punishable by a specified fine or term of imprisonment, or both, depending on the violation.
This bill would
begin delete impose specified requirements relating to insurance coverage, indemnity, and liability on transportation network companies, as defined, including requiring a transportation network company to disclose to participating
drivers the company’s insurance coverage and limits of liability. The bill would specify that the transportation network company’s insurance is primary, and would impose a duty to defend and indemnify on the transportation network companyend delete. The bill would require the commission and the Department of Insurance to collaborate on a study of transportation network company insurance, as specified, and would prohibit a transportation network company from disclosing the personally identifiable information of a passenger, except as specified. The bill would specify the Legislature’s intent relating to expediting the approval of transportation network company insurance products, and would set forth related legislative findings and declarations.
Because a violation of the bill’s provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Article 7 (commencing with Section 5430) is
2added to Chapter 8 of Division 2 of the Public Utilities Code, to
Notwithstanding any other provision of this chapter, this
8article shall apply to transportation network companies.
As used in this
begin delete chapterend delete, a “transportation network
10company” is an organization, including, but not limited to, a
begin delete orend delete sole proprietor,
12 operating in California that provides prearranged transportation
13services for compensation using an online-enabled application or
14platform to connect passengers with drivers using their personal
A transportation network company shall disclose in
3writing to participating drivers, as part of its agreement with those
4drivers, the insurance coverage and limits of liability that the
5transportation network company provides while a driver makes
6himself or herself available for transportation network company
7services, and shall advise a participating driver in writing that the
8driver’s personal automobile insurance policy may not provide
9coverage while the driver makes himself or herself available for
10transportation network company services.
(a) Regarding insurance, both of the following shall
19apply from the moment a participating driver logs on to the
20transportation network company’s application program until the
21driver logs off from that application program:
22(1) Transportation network company insurance shall be primary.
23(2) Transportation network company insurance shall have the
24duty to defend and indemnify.
25(b) Transportation network company liability insurance coverage
26shall be required at a lower amount from the moment a
27participating driver logs on to the transportation network company
28application program until that driver has a passenger match
29 accepted. This lower amount shall be at least fifty thousand dollars
30($50,000) for death and personal injury, at least one hundred
31thousand dollars ($100,000) for death and personal injury of two
32or more persons, and at least thirty thousand dollars ($30,000) for
33property damage, all per incident. The requirements for this
34coverage may be satisfied by any of the following:
35(1) A primary personal automobile liability insurance policy
36that recognizes the driver’s provision of transportation network
38(2) An automobile liability insurance policy maintained by the
39transportation network company that provides primary coverage
40in the event a driver’s personal automobile insurance policy does
P7 1not recognize the driver’s provision of transportation network
3(3) A combination of a primary
automobile liability insurance
4policy that recognizes the driver’s provision of transportation
5network company services and an automobile liability insurance
6policy maintained by the transportation network company.
7(c) This section shall not limit the liability of a transportation
8network company arising out of an automobile accident involving
9a participating driver in any action for damages against a
10transportation network company for an amount above the required
The commission and the Department of Insurance shall
33collaborate on a study of transportation network company insurance
34to assess whether coverage requirements are appropriate to the
35risk of transportation network company services in order to
36promote data-driven decisions on insurance requirements.
A transportation network company shall not disclose to
39a third party any personally identifiable information of a
P8 1transportation network company passenger unless one of the
3(1) The customer knowingly consents.
4(2) Pursuant to a legal obligation.
5(3) The disclosure is to the commission in order to investigate
6a complaint filed with the commission against a transportation
7network company or a participating driver and the commission
8treats the information under confidentiality protections.
It is the intent of the Legislature that the Department of
11Insurance expedite review of any application for approval of
12transportation network company insurance products.
The Legislature makes the following findings:
15(a) The commission has initiated regulation of transportation
16network companies as a new category of charter-party carriers and
17continues to develop appropriate regulations for this new service.
18(b) Given the rapidly evolving transportation network company
19service, it is the intent of the Legislature to continue ongoing
20oversight of the commission’s regulation of these services in order
21to enact legislation to adjust commission authority and impose
22specific requirements or prohibitions as deemed necessary as these
Notwithstanding Section 11580.9 of the Insurance Code,
3or any other law affecting whether one or more policies of
4insurance that may apply with respect to an occurrence is primary
5or excess, this article determines the obligations under insurance
6policies issued to transportation network companies and, if
7applicable, drivers providing transportation network services for
8transportation network companies.
No reimbursement is required by this act pursuant to
10Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district will be incurred because this act creates a new crime or
13infraction, eliminates a crime or infraction, or changes the penalty
14for a crime or infraction, within the meaning of Section 17556 of
15the Government Code, or changes the definition of a crime within
16the meaning of Section 6 of Article XIII B of the California