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 amend the Passenger Charter-party Carriers’ Act to enact specified requirements for liability
begin delete and otherend delete insurance coverage for transportation
network companies, as defined, and their participating drivers. The bill would begin delete define 3end delete distinct time periods begin delete that comprise transportation network company services,end delete and would specify the insurance requirements for each of those time periods and alternative methods of compliance with those requirements. The bill begin delete would require a transportation network company to verify that a participating driver carries and maintains the appropriate type of insurance coverage, as applicable, and,end delete in the event a driver’s insurance policy ceases to exist begin delete, would require theend delete transportation network company’s insurance policy to provide the required coverage. begin delete The bill would require insurance coverage for transportation network company services to be specifically written to cover those services, and would provide that a participating driver’s personal automobile insurance policy does not provide coverage for those services unless that coverage is separately and specifically stated and priced.end 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 article, a “transportation network
10company” is an organization, including, but not limited to, a
11corporation, partnership, sole proprietor,
12or any other entity, operating in California that
begin delete providesend delete
13 prearranged transportation services for compensation using an
14online-enabled application or platform to connect passengers with
begin delete their personal
(a) As used in this article, “transportation network
26company services” refers to the period of time that commences
27when a participating driver in a transportation network company
28logs onto the transportation network company’s application
29program and ceases when the driver logs off the application
P4 1(b) For purposes of this article, transportation network company
2services have three distinct time periods, as follows:
3(1) Period One runs from the time a participating driver logs
4onto the transportation network company’s application program
5and continues as long as the driver has not yet accepted a match
6with a passenger on the application program. Period One also runs
7from the time a matched passenger exits the private passenger
8vehicle of the participating driver until the time the driver accepts
9another match with a passenger or logs off the application program.
10(2) Period Two runs from the time a participating driver accepts
11a match with a passenger on the transportation network company’s
12application program until the time the driver picks up the matched
14(3) Period Three runs from the time a passenger enters the
15private passenger vehicle of the participating driver until the
16passenger exits the vehicle.
(a) A transportation network company shall disclose in
19writing to participating drivers, as part of its agreement with those
20drivers, the insurance coverage and limits of liability that the
21transportation network company provides
begin delete while aend delete
begin delete makes himself or herself available for transportation network and shall advise a participating driver in writing that the
23company services,end delete
26driver’s personal automobile insurance policy
begin delete mayend delete not provide
27coverage while the driver
begin delete makes himself or herself available for
28transportation network company services.end delete
31(b) (1) A transportation network company shall maintain
32insurance coverage that assumes all liability and provides other
33coverages for transportation network company services during
34Periods Two and Three, as described in subdivision (b) of Section
355432. The insurance limits and coverages shall include, but need
36not be limited to, the requirements imposed by the commission
37for transportation network companies relative to liability, medical
38payments, comprehensive, collision, and uninsured and
P5 1(2) The requirement for a transportation network company to
2maintain insurance coverage pursuant to this subdivision may be
3satisfied by any of the following:
4(A) An insurance policy obtained by a participating driver that
5is specifically written to cover transportation network company
6services during Periods Two and Three.
7(B) Any combination of an insurance policy obtained by the
8transportation network company and an insurance policy obtained
9by a participating driver that is specifically written to cover
10transportation network company services, or portion thereof.
11(C) An insurance policy obtained by a transportation network
13(3) A transportation network company may meet its obligations
14to maintain insurance coverage under this subdivision with a policy
15obtained by the participating driver pursuant to subparagraph (A)
16of paragraph (2), or with a combination of policies pursuant to
17subparagraph (B) of paragraph (2), only if the transportation
18network company verifies that the policy or policies in question
19are specifically written to cover transportation network company
20services and that any policy obtained by a participating driver in
21that regard is maintained.
22(4) If an insurance policy obtained by a participating driver to
23meet the requirements of this subdivision ceases to exist at any
24time for any reason, including, but not limited to, lapse or
25cancellation, the transportation network company’s insurance
26policy shall provide all required coverage under this subdivision
27beginning with the first dollar of a claim.
28(c) (1) A transportation network company shall ensure that a
29participating driver is covered by insurance coverage during Period
30One, including liability, medical payments, comprehensive,
31collision, and uninsured and underinsured motorist coverage, as
32required by the commission, subject to coverage requirements as
33specified in this subdivision, through one of the following:
34(A) A policy obtained by a transportation network company
35with limits of liability coverage of seven hundred fifty thousand
36dollars ($750,000) for death, personal injury, and property damage,
37and with limits for other required coverages as determined by the
39(B) A policy obtained by a participating driver of a
40transportation network company that is specifically written to cover
P6 1Period One with limits of liability coverage of seven hundred fifty
2thousand dollars ($750,000) for death, personal injury, and property
3damage, and with limits for other required coverages as determined
4by the commission.
5(C) Any combination of policies obtained by a transportation
6network company and a participating driver, where each policy is
7specifically written to cover Period One, as long as the combined
8policies together provide liability coverage of seven hundred fifty
9thousand dollars ($750,000) for death, personal injury, and property
10damage, and with limits for other required coverages as determined
11by the commission.
12(2) A transportation network company may meet its obligations
13under this subdivision through a policy obtained by a participating
14driver pursuant to subparagraph (B) or (C) of paragraph (1) only
15if the transportation network company verifies that the policy is
16specifically written to cover transportation network company
17services and is maintained by the driver.
18(3) If an insurance policy obtained by a participating driver to
19meet the requirements of this subdivision pursuant to subparagraph
20(B) or (C) of paragraph (1) ceases to exist at any time for any
21reason, including, but not limited to, lapse or cancellation, the
22transportation network company’s insurance policy shall provide
23all required coverage under this subdivision beginning with the
24first dollar of a claim.
25(4) Notwithstanding any other law, in the event of a loss or
26injury during the provision of transportation network company
27services, where the loss or injury exceeds the policy coverage
28requirements of this subdivision, the transportation network
29company, or any affiliated parent or subsidiary of the transportation
30network company, shall assume all liability of the participating
31driver under this subdivision above the amounts of those policy
32coverage limits. This paragraph shall apply regardless of whether
33the affiliate is organized as a limited liability company.
34(d) This section shall not limit the liability of a transportation
35network company arising out of an automobile accident involving
36a participating driver in any action for damages against a
37transportation network company for an amount above the required
Notwithstanding the coverage options described in
10Section 5433, during Periods One, Two, and Three, the vehicle
11used by a participating driver in transportation network company
12services shall be considered a public or livery conveyance and
13shall be considered as providing delivery of persons or passengers
14for compensation or a fee. Unless coverage for transportation
15network services is separately and specifically stated in an
16insurance policy and priced pursuant to approval by the Department
17of Insurance, a participating driver’s personal automobile insurance
18policy shall not provide coverage for transportation network
19company services, and the insurer under that policy shall have no
20duty to defend and indemnify for claims resulting from provision
21of those services.
In a claims coverage investigation during Period One,
23Two, or Three, a transportation network company or its insurer
24shall cooperate with insurers who are involved in the claims
25coverage investigation to facilitate the exchange of information,
26including the provision of dates and times at which an accident
27occurred that involved a participating driver.
The commission and the Department of Insurance shall
32collaborate on a study of transportation network company insurance
33to assess whether coverage requirements are appropriate to the
34risk of transportation network company services in order to
35promote data-driven decisions on insurance
begin delete requirements.end delete
A transportation network company shall not disclose to
39a third party any personally identifiable information of a
P11 1transportation network company passenger unless one of the
begin delete apply:end delete
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
10Insurance expedite review of any application for approval of
11transportation network company insurance products.
The Legislature makes the following findings:
19(a) The commission has initiated regulation of transportation
20network companies as a new category of charter-party carriers and
21continues to develop appropriate regulations for this new service.
22(b) Given the rapidly evolving transportation network company
23service, it is the intent of the Legislature to continue ongoing
24oversight of the commission’s regulation of these services in order
25to enact legislation to adjust commission authority and impose
26specific requirements or prohibitions as deemed necessary as these
The Legislature does not intend, and nothing in this
30article shall be construed, to prohibit the commission from
31exercising its rulemaking authority in a manner consistent with
32this article, or to prohibit enforcement activities related to
33transportation network companies.
of transportation network
begin delete companiesend delete shall carry with begin delete themend delete at all times
begin delete the provision of transportation network company services
39proof of insurance coverage, including any coverage from the
40driver’s own policy that is specifically written to cover the
P12 1provision of transportation network company services, or coverage
2from a policy obtained by the transportation network company, or
3both, as applicableend delete
6provide this insurance coverage information to any other party
7involved in the accident, and to a police officer, upon request.
Notwithstanding Section 11580.9 of the Insurance Code,
10or any other law affecting whether one or more policies of
11insurance that may apply with respect to an occurrence is primary
12or excess, this article determines the obligations under insurance
13policies issued to transportation network companies and, if
begin delete providing transportation network services for
15transportation network companies.end delete
No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California