STATE OF NEW YORK ________________________________________________________________________ 6585 2017-2018 Regular Sessions IN ASSEMBLY March 9, 2017 ___________ Introduced by M. of A. WALTER -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to transportation network companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 3441 2 to read as follows: 3 § 3441. Transportation network companies. (a) Notwithstanding any 4 other provision of this chapter, this section shall apply to transporta- 5 tion network companies. 6 (b) For purposes of this section the following definitions shall 7 apply: 8 (1) "Personal vehicle" means a motor vehicle used by a transportation 9 network company driver and is owned or leased by the transportation 10 network company driver. 11 (2) "Digital network" means any online-enabled application, software, 12 website or system offered or utilized by a transportation network compa- 13 ny that enables the prearrangement of rides with transportation network 14 company drivers. 15 (3) "Transportation network company" means a corporation, partnership, 16 sole proprietorship, or other entity that is operating in this state 17 that uses a digital network to connect transportation network company 18 riders to transportation network company drivers who provide prearranged 19 rides. 20 (4) "Transportation network company driver" or "driver" means an indi- 21 vidual who: 22 (A) receives connections to potential riders and related services from 23 a transportation network company in exchange for payment of a fee to the 24 transportation network company; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09188-01-7

A. 6585 2 1 (B) uses a personal vehicle to offer or provide a prearranged ride to 2 riders upon connection through a digital network controlled by a trans- 3 portation network company in return for compensation or payment of a 4 fee. 5 (5) "Transportation network company rider" or "rider" means an indi- 6 vidual or persons who use a transportation network company's digital 7 network to connect with a transportation network driver who provides 8 prearranged rides to the rider in the driver's personal vehicle between 9 points chosen by the rider. 10 (6) "Prearranged ride" means the provision of transportation by a 11 driver to a rider, beginning when a driver accepts a ride requested by a 12 rider through a digital network controlled by a transportation network 13 company, continuing while the driver transports a requesting rider, and 14 ending when the last requesting rider departs from the personal vehicle. 15 (7) "Group policy" means an insurance policy issued pursuant to 16 section three thousand four hundred fifty-five of this article. 17 (c) A transportation network company driver or transportation network 18 company on the driver's behalf through a group policy, shall maintain 19 primary automobile insurance that: 20 (1) recognizes that the driver is a transportation network company 21 driver or otherwise uses a vehicle to transport passengers for compen- 22 sation and covers the driver: 23 (A) while the driver is logged on to the transportation network compa- 24 ny's digital network; or 25 (B) while the driver is engaged in a prearranged ride. 26 (2) the following automobile insurance requirements shall apply while 27 a participating transportation network company driver is logged on to 28 the transportation network company's digital network and is available to 29 receive transportation requests but is not engaged in a prearranged 30 ride: 31 (A) primary automobile liability insurance in the amount of at least 32 fifty thousand dollars for death and bodily injury per person, one 33 hundred thousand dollars for death and bodily injury per incident, and 34 twenty-five thousand dollars for property damage and coverage in satis- 35 faction of the financial responsibility requirements set forth in 36 section three thousand four hundred twenty of this article, article 37 fifty-one of this chapter and regulations promulgated thereunder. 38 (B) the coverage requirements of this paragraph may be satisfied by 39 any of the following: 40 (i) automobile insurance maintained by the transportation network 41 company driver; or 42 (ii) automobile insurance provided through a group policy maintained 43 by the transportation network company; or 44 (iii) any combination of clause (i) or (ii) of this subparagraph. 45 (3) the following automobile insurance requirements shall apply while 46 a transportation network company driver is engaged in a prearranged 47 ride: 48 (A) primary automobile liability insurance that provides at least one 49 million dollars for death, bodily injury and property damage and cover- 50 age in satisfaction of the financial responsibility requirements set 51 forth in section three thousand four hundred twenty of this article, 52 article fifty-one of this chapter and regulations promulgated there- 53 under. 54 (B) the coverage requirements of this paragraph may be satisfied by 55 any of the following:

A. 6585 3 1 (i) automobile insurance maintained by the transportation network 2 company driver; or 3 (ii) automobile insurance provided through a group policy maintained 4 by the transportation network company; or 5 (iii) any combination of clauses (i) and (ii) of this subparagraph. 6 (4) a transportation network company shall, upon entering into a 7 contractual agreement with a transportation network company driver, 8 provide notice to the transportation network company driver that the 9 driver may need additional insurance coverage including motor vehicle 10 physical damage coverage as described in paragraph nineteen of 11 subsection (a) of section one thousand one hundred thirteen of this 12 chapter if the driver's personal vehicle is subject to a lease or loan. 13 A transportation network company shall also post this notice on its 14 website in a prominent place. 15 (5) if insurance maintained by a driver in paragraph two or three of 16 this subsection has lapsed or does not provide the required coverage, 17 insurance maintained by a transportation network company shall provide 18 the coverage required by this subsection beginning with the first dollar 19 of a claim and have the duty to defend such claim. 20 (6) coverage under an automobile insurance policy maintained by the 21 transportation network company shall not be dependent on a personal 22 automobile insurer first denying a claim nor shall a personal automobile 23 insurance policy be required to first deny a claim. 24 (7) insurance required by this subsection may be placed with an insur- 25 er authorized or eligible to write insurance in this state and shall be 26 eligible for placement by an excess line broker licensed pursuant to 27 article twenty-one of this chapter. 28 (8) insurance satisfying the requirements of this subsection shall be 29 deemed to satisfy the financial responsibility requirements set forth in 30 subdivision four of section three hundred eleven of the vehicle and 31 traffic law, section three thousand four hundred twenty of this article, 32 article fifty-one of this chapter, and regulations promulgated there- 33 under, and such other requirements that may apply for the purposes of 34 satisfying the financial responsibility requirements with respect to the 35 use or operation of a motor vehicle. 36 (9) a transportation network company driver shall carry proof of 37 coverage satisfying paragraphs two and three of this subsection with him 38 or her at all times during his or her use of a vehicle in connection 39 with a transportation network company's digital network. In the event of 40 an accident, a transportation network company driver shall provide this 41 insurance coverage information to the directly interested parties, auto- 42 mobile insurers and investigating police officers, upon request. Upon 43 such request, a transportation network company driver shall also 44 disclose to directly interested parties, automobile insurers, and inves- 45 tigating police officers, whether he or she was logged on to the trans- 46 portation network company's digital network or on a prearranged ride at 47 the time of an accident. 48 (d) The transportation network company shall disclose in writing to 49 transportation network company drivers the following before they are 50 allowed to accept a request for a prearranged ride on the transportation 51 network company's digital network: 52 (1) the insurance coverage, including the types of coverage and the 53 limits for each coverage, that the transportation network company 54 provides while the transportation network company driver uses a personal 55 vehicle in connection with a transportation network company's digital 56 network; and

A. 6585 4 1 (2) that the transportation network company driver's own automobile 2 insurance policy might not provide any coverage while the driver is 3 logged on to the transportation network company's digital network and is 4 available to receive transportation requests or is engaged in a prear- 5 ranged ride, depending on its terms. 6 (e) (1) Insurers that write automobile insurance in this state may 7 exclude any and all coverage afforded under the policy issued to an 8 owner or operator of a personal vehicle for any loss or injury that 9 occurs while a driver is logged on to a transportation network company's 10 digital network or while a driver provides a prearranged ride. This 11 right to exclude all coverage may apply to any coverage included in an 12 automobile insurance policy including, but not limited to: 13 (A) liability coverage for bodily injury and property damage; 14 (B) coverage provided pursuant to article fifty-one of this chapter; 15 (C) uninsured and underinsured motorist coverage; and 16 (D) motor vehicle physical damage coverage as described in paragraph 17 nineteen of subsection (a) of section one thousand one hundred thirteen 18 of this chapter. 19 (2) Such exclusions shall apply notwithstanding any requirement under 20 the law to the contrary. Nothing in this section implies or requires 21 that a personal automobile insurance policy provide coverage while the 22 driver is logged on to the transportation network company's digital 23 network, while the driver is engaged in a prearranged ride or while the 24 driver otherwise uses a vehicle to transport passengers for compen- 25 sation. 26 (3) Nothing shall be deemed to preclude an insurer from providing 27 coverage for the transportation network company driver's vehicle, if it 28 so chose to do so by contract or endorsement. 29 (4) Automobile insurers that exclude the coverage described in 30 subsection (c) of this section shall have no duty to defend or indemnify 31 any claim expressly excluded thereunder. Nothing in this article shall 32 be deemed to invalidate or limit an exclusion contained in a policy 33 including any policy in use or approved for use in this state prior to 34 the enactment of this section that excludes coverage for vehicles used 35 to carry persons or property for a charge or available for hire by the 36 public. 37 (5) An automobile insurer that defends or indemnifies a claim against 38 a driver that is excluded under the terms of its policy, shall have a 39 right of contribution against other insurers that provide automobile 40 insurance to the same driver in satisfaction of the coverage require- 41 ments of subsection (c) of this section at the time of loss. 42 (6) In a claims coverage investigation, transportation network compa- 43 nies and any insurer potentially providing coverage under subsection (c) 44 of this section shall, within fifteen days after a claim has been filed, 45 facilitate the exchange of relevant information with directly involved 46 parties and any insurer of the transportation network company driver if 47 applicable, including the precise times that a transportation network 48 company driver logged on and off of the transportation network company's 49 digital network in the twelve hour period immediately preceding and in 50 the twelve hour period immediately following the accident and disclose 51 to one another a clear description of the coverage, exclusions and 52 limits provided under any automobile insurance maintained under 53 subsection (c) of this section. 54 § 2. The insurance law is amended by adding a new section 3455 to read 55 as follows:

A. 6585 5 1 § 3455. Transportation network company group insurance policies. (a) 2 For purposes of this section, the following definitions shall apply: 3 (1) "Transportation network company" shall have the meaning set forth 4 in subsection (b) of section three thousand four hundred forty-one of 5 this article. 6 (2) "Certificate" or "certificate of insurance" means any policy, 7 contract or other evidence of insurance, or rider or endorsement there- 8 to, issued to a group member under a transportation network company 9 group policy. 10 (3) "Transportation network company group policy" or "group policy" 11 means group policy, including certificate issued to the group members, 12 where the group policyholder is a transportation network company and the 13 policy provides insurance to the transportation network company and to 14 group members: 15 (A) in accordance with the requirements of subsection (c) of section 16 three thousand four hundred forty-one of this article; 17 (B) of the type described in paragraphs thirteen, fourteen and/or 18 nineteen of subsection (a) of section one thousand one hundred thirteen 19 of this chapter; and 20 (C) in satisfaction of the financial responsibility requirements set 21 forth in section three thousand four hundred twenty of this article, 22 subdivision four of section three hundred eleven of the vehicle and 23 traffic law, article fifty-one of this chapter, and regulations promul- 24 gated thereunder. 25 (4) "Group Member" means a "transportation network company driver" as 26 defined in subsection (b) of section three thousand four hundred forty- 27 one of this article. 28 (5) "Group policyholder" means a transportation network company. 29 (6) "Personal vehicle" shall have the meaning set forth in subsection 30 (b) of section three thousand four hundred forty-one of this article. 31 (b) An insurer may issue or issue for delivery in this state a trans- 32 portation network company group policy to a transportation network 33 company as a group policyholder only in accordance with the provisions 34 of this section. 35 (c)(1) A transportation network company group policy shall provide 36 coverage for a personal vehicle in accordance with the requirements of 37 subsection (c) of section three thousand four hundred forty-one of this 38 article. 39 (2) A transportation network company group policy may provide: 40 (A) coverage for limits higher than the minimum limits required pursu- 41 ant to subsection (c) of section three thousand four hundred forty-one 42 of this article; 43 (B) supplementary uninsured/underinsured motorists insurance for bodi- 44 ly injury pursuant to paragraph two of subsection (f) of section three 45 thousand four hundred twenty of this article; 46 (C) supplemental spousal liability insurance pursuant to subsection 47 (g) of section three thousand four hundred twenty of this chapter; and 48 (D) motor vehicle physical damage coverage as described in paragraph 49 nineteen of subsection (a) of section one thousand one hundred thirteen 50 of this chapter. 51 (3) The coverage described in paragraphs one and two of this 52 subsection may be provided in one group policy or in separate group 53 policies. 54 (4) A transportation network company group policy, including certif- 55 icates, shall be issued by an insurer authorized or eligible to write

A. 6585 6 1 insurance in this state and shall be eligible for placement by an excess 2 line broker licensed pursuant to article twenty-one of this chapter. 3 (5) A policyholder also may be an insured under a group policy. 4 (d) The premium for the transportation network company group policy, 5 including certificates may be paid by the group policyholder from the 6 funds contributed: 7 (1) wholly by the group policyholder; 8 (2) wholly by the group members; or 9 (3) jointly by the group policyholder and the group members. 10 (e) (1) Any policy dividend, retrospective premium credit, or retro- 11 spective premium refund in respect of premiums paid by the group policy- 12 holder may: 13 (A) be applied to reduce the premium contribution of the group policy- 14 holder, but not in excess of the proportion to its contribution; or 15 (B) be retained by the group policyholder. 16 (2) Any policy dividend, retrospective premium credit, or retrospec- 17 tive premium refund not distributed under paragraph one of this 18 subsection shall be: 19 (A) applied to reduce future premiums and, accordingly, future 20 contributions, of existing or future group members, or both; or 21 (B) paid or refunded to those group members insured on the date the 22 payment or refund is made to the group policyholder, if distributed by 23 the group policyholder, or on the date of mailing, if distributed 24 directly by the insurer, subject to the following requirements: 25 (i) The insurer shall be responsible for determining the allocation of 26 the payment of refund to the group members; 27 (ii) If the group policyholder distributes the payment or refund, the 28 insurer shall be responsible for audit to ascertain that the payment or 29 refund is actually made in accordance with the allocation procedure; and 30 (iii) If the group policyholder fails to make the payment or refund, 31 the insurer shall make the payment or refund directly or use the method 32 provided in subparagraph (A) of this paragraph. 33 (3) Notwithstanding paragraphs one and two of this subsection, if a 34 dividend accrues upon termination of coverage under a transportation 35 network company group policy, the premium for which was paid out of 36 funds contributed by group members specifically for the coverage, the 37 dividend shall be paid or refunded by the group policyholder to the 38 group members insured on the date the payment or refund is made to the 39 group policyholder, net of reasonable expenses incurred by the group 40 policyholder in paying or refunding the dividend to such group members. 41 (4) For the purposes of this subsection, "dividend" means a return by 42 the insurer of a transportation network company group policy of excess 43 premiums to the group policyholder in light of favorable loss experi- 44 ence, including retrospective premium credits or retrospective premium 45 refunds. The term "dividend" does not include reimbursements or fees 46 received by a group policyholder in connection with the operation or 47 administration of a transportation network company group policy, includ- 48 ing administrative reimbursements, fees for services provided by the 49 group policyholder, or transactional service fees. 50 (f) The insurer must treat in like manner all eligible group members 51 of the same class and status. 52 (g) Each policy written pursuant to this section shall provide per 53 occurrence limits of coverage for each group member in an amount not 54 less than that required by of subsection (c) of section three thousand 55 four hundred forty-one of this article, and may provide coverage for 56 limits higher than the minimum limits required under the law.

A. 6585 7 1 (h) (1) The insurer or the group policyholder shall be responsible for 2 mailing or delivery of a certificate of insurance to each group member 3 insured under the transportation network company group policy. The 4 insurer or the group policyholder shall also be responsible for the 5 mailing or delivery to each group member of an amended certificate of 6 insurance or endorsement to the certificate, whenever there is a change 7 in limits; change in type of coverage; addition, reduction, or elimi- 8 nation of coverage; or addition of exclusion, under the transportation 9 network company group policy or certificate. 10 (2) The certificate shall contain in substance all material terms and 11 conditions of coverage afforded to group members, unless the transporta- 12 tion network company group policy is incorporated by reference and a 13 copy of the group policy accompanies the certificate. 14 (3) If any coverage afforded to the group member is excess of applica- 15 ble insurance coverage, the certificate shall contain a notice advising 16 the group members that, if the member has other insurance coverage, 17 specified coverages under the transportation network company group poli- 18 cy will be excess over the other insurance. 19 (i) A group policyholder shall comply with the provisions of section 20 two thousand one hundred twenty-two of this chapter, in the same manner 21 as an agent or broker, in any advertisement, sign, pamphlet, circular, 22 card, or other public announcement referring to coverage under a trans- 23 portation network company group policy or certificate. 24 (j) A transportation network company group policy shall not be subject 25 to section three thousand four hundred twenty-five or section three 26 thousand four hundred twenty-six of this article; provided that the 27 following requirements shall apply with regard to termination of cover- 28 age: 29 (1)(A) An insurer may terminate a group policy or certificate only if 30 cancellation is based on one or more of the reasons set forth in subpar- 31 agraph (A) through (D) or (F) through (H) of paragraph one of subsection 32 (c) of section three thousand four hundred twenty-six of this article; 33 provided, however, that an act or omission by a group member that would 34 constitute the basis for cancellation of an individual certificate shall 35 not constitute the basis for cancellation of the group policy. 36 (B) Where the premium is derived wholly from funds contributed by the 37 group policyholder, an insurer may cancel an individual certificate only 38 if cancellation is based on one or more of the reasons set forth in 39 subparagraph (B), (C) or (H) of paragraph one of subsection (c) of 40 section three thousand four hundred twenty-six of this article. 41 (2) (A) An insurer's cancellation of a group policy, including all 42 certificates, shall not become affective until thirty days after the 43 insurer mails or delivers written notice of cancellation to the group 44 policyholder at the mailing address shown in the policy. 45 (i) Where all or part of the premium is derived from funds contributed 46 by the group member specifically for the coverage, the insurer shall 47 also mail or deliver written notice of cancellation of the group policy 48 to the group member at the group member's mailing address. 49 (ii) Where none of the premium is derived from funds contributed by a 50 group member specifically for the coverage, the group policy holder 51 shall mail or deliver written notice to the group member advising the 52 group member of the cancellation of the group policy and the effective 53 date of cancellation. The group policy holder shall mail or deliver the 54 written notice within ninety days after receiving notice of cancellation 55 from the insurer.

A. 6585 8 1 (B) An insurer's cancellation of an individual certificate shall not 2 become effective until thirty days after the insurer mails or delivers 3 written notice of cancellation to the group member at the group member's 4 mailing address and to the group policyholder at the mailing address 5 shown in the group policy. 6 (3) (A) A group policyholder may cancel a group policy, including all 7 certificates, or any individual certificate, for a reason upon thirty 8 days written notice to the insurer and each group member; and 9 (B) The group policyholder shall mail or deliver written notice to 10 each affected group member of the group policyholder's cancellation of 11 the group policy or certificate and the effective date of cancellation. 12 The group policyholder shall mail or deliver the written notice to the 13 group member's mailing address at least thirty days prior to the effec- 14 tive date of cancellation. 15 (4) (A) Unless a group policy provides for a longer policy period, the 16 policy and all certificates shall be issued or renewed for a one-year 17 policy period. 18 (B) The group policyholder shall be entitled to renew the group policy 19 and all certificates upon timely payment of the premium billed to the 20 group policyholder for the renewal, unless: 21 (i) the insurer mails or delivers to the group policyholder and all 22 group members written notice of nonrenewal, or conditional renewal; and 23 (ii) the insurer mails or delivers the written notice at least thirty, 24 but not more than one hundred twenty days prior to the expiration date 25 specified in the policy or, if no date is specified, the next anniver- 26 sary date of the policy. 27 (5) Where the group policyholder nonrenews the group policy, the group 28 policyholder shall mail or deliver written notice to each group member 29 advising the group member of nonrenewal of the group policy and the 30 effective date of nonrenewal. The group policyholder shall mail or 31 deliver written notice at least thirty days prior to the nonrenewal. 32 (6) Every notice of cancellation, nonrenewal, or conditional renewal 33 shall set forth the specific reason or reasons for cancellation, nonre- 34 newal, or conditional renewal. 35 (7) (A) An insurer shall not be required under this subsection to give 36 notice to a group member if the insurer has been advised by either the 37 group policyholder or another insurer that substantially similar cover- 38 age has been obtained from the other insurer without lapse of coverage. 39 (B) A group policyholder shall not be required under this subsection 40 to give notice to a group member if substantially similar coverage has 41 been obtained from another insurer without lapse of coverage. 42 (8) (A) If, prior to the effective date of cancellation, nonrenewal, 43 or conditional renewal of the group policy, or a certificate, whether 44 initiated by the insurer, group policyholder or by the group member in 45 regard to the group member's certificate, coverage attaches pursuant to 46 the terms of a group policy, then the coverage shall be effective until 47 expiration of the applicable period of coverage provided in the group 48 policy notwithstanding the cancellation, nonrenewal or conditional 49 nonrenewal of the group policy. 50 (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may 51 terminate coverage under an individual certificate on the effective date 52 of cancellation, if the certificate is cancelled in accordance with the 53 provisions of subparagraph (B) of paragraph one of this subsection. 54 (k) Any mailing or delivery to a group member required or permitted 55 under this section may be made by electronic mail if consent to such 56 method of delivery has been previously received from such group member.

A. 6585 9 1 (l) The superintendent shall not approve for delivery any policy under 2 this section for a vehicle which is licensed to operate by a taxi and 3 limousine commission, in any city with a population of one million or 4 more. 5 § 3. Subsection (b) of section 5103 of the insurance law is amended by 6 adding a new paragraph 4 to read as follows: 7 (4) Is injured while operating a personal vehicle as a transportation 8 network company driver or transportation network company rider as such 9 terms are defined in subsection (b) of section three thousand four 10 hundred forty-one of this chapter. 11 § 4. The municipal officers and boards in cities, towns, villages and 12 counties of this state may adopt ordinances regulating transportation 13 network companies including but not limited to comprehensive background 14 checks of prospective drivers and on all other matters other than the 15 insurance requirements set forth in section 3441 of the insurance law. 16 Nothing in this section shall authorize any transportation network 17 company or transportation network driver to provide passenger pick-up 18 service in a city with a population of one million or more except as may 19 be authorized by such city. 20 § 5. This act shall take effect on the ninetieth day after it shall 21 have become a law.

Relates to transportation network companies

What's Happening

Why It Matters