Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2224

Introduced by Assembly Member Nazarian

February 20, 2014

begin delete An act to amend Section 667.5 of the Insurance Code, relating to insurance. end delete begin insert An act to add Chapter 8.5 (commencing with Section 5430) to Division 2 of the Public Utilities Code, relating to transportation. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2224, as amended, Nazarian. begin delete Insurance: cancellation: failure to renew. end delete begin insert Transportation network companies: insurance coverage. end insert

begin insert

Under existing law, the Passenger Charter-party Carriers’ Act, 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 insurance policy for incidents involving transportation network company vehicles and drivers in transit to or during a transportation network company trip.

end insert begin insert

This bill would more broadly define “transportation network company” by excluding the requirement that a transportation network company trip be prearranged and would provide that the Public Utilities Commission shall require a transportation network company to have in effect a primary commercial motor vehicle liability insurance policy to cover the vehicles of its participating drivers, as part of its agreement with those drivers, with respect to personal injury liability, property damage liability, and personal injury protection liability benefits available to drivers, passengers, pedestrians, and others, as specified.

end insert begin delete

Existing law requires, with exceptions, that the cancellation of an insurance policy or any change in the policy, executed by the insurer at the request of the named insured designated on the declarations page of the policy, is binding on any other insured or named insured. The insurer is required to mail or deliver the notice of cancellation or an endorsement evidencing the named insured’s request to all individuals or entities designated as named insureds on the declarations page of the policy.

end delete begin delete

This bill would make technical, nonsubstantive changes to those provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Chapter 8.5 (commencing with Section 5430) is
added to Division 2 of the end insert begin insert Public Utilities Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 8.5. end insert Transportation Network Companies

 

begin insert 5430. end insert   

As used in this chapter, a “transportation network
company” is an organization, including, but not limited to, a
corporation, partnership, or sole proprietor, operating in this
state, that provides transportation services for compensation using
an online-enabled application or platform to connect passengers
with drivers using their personal vehicles.

begin insert 5431. end insert   

The commission shall require a transportation network
company to have in effect a primary commercial motor vehicle
liability insurance policy to cover the vehicles of its participating
drivers, as part of its agreement with those drivers, with respect
to personal injury liability, property damage liability, and personal
injury protection liability benefits available to drivers, passengers,
pedestrians, and others, with a minimum coverage of at least one
million dollars ($1,000,000) per incident.

end insert

begin delete

SECTION 1.  

Section 667.5 of the Insurance Code is amended
to read:

667.5.  

(a) Unless a policy specifically provides otherwise, the
cancellation of a policy, or any change in a policy, executed by an
insurer, at the request of the named insured designated on the
declarations page of the policy, shall be binding upon any other
insured or named insured.

(b) Notice of cancellation or an endorsement evidencing the
named insured’s request shall be mailed or delivered to the address
stated in the policy to all individuals or to all entities designated
as named insureds on the declarations page of the policy.

end delete