H. B. No. 679 As Introduced

As Introduced

130th General Assembly

Regular Session

2013-2014

H. B. No. 679

Representatives Hackett, Bishoff

A BILL

To enact sections 3938.01, 3938.02, 3938.03, 3938.04,

3938.05, 3938.06, 3938.07, and 3938.99 of the

Revised Code to regulate insurance requirements

for transportation network companies and

transportation network company drivers.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3938.01, 3938.02, 3938.03, 3938.04,	6
3938.05, 3938.06, 3938.07, and 3938.99 of the Revised Code be	7
enacted to read as follows:	8

Sec. 3938.01. As used in this chapter:

(A) "Owner" means the person whose name appears on the	10
personal vehicle's registration.	11

(B) "Personal vehicle" means a vehicle that is used by a	12
transportation network company driver in connection with providing	13
transportation network company services.	14

(C) "Rider" means an individual who, through the use of a	15
transportation network company, is connected with a transportation	16
network company driver to obtain transportation network company	17
services in a personal vehicle.	18

(D) "Transportation network company" includes a corporation,	19
partnership, association, limited liability company,	20
proprietorship, or other entity operating in this state that uses	21
an online application or platform, digital network, or other means	22
to connect riders to transportation network company drivers for	23
the purpose of providing transportation for compensation, other	24
than for the reimbursement of expenses in a ridesharing	25
arrangement as defined in section 4921.01 of Revised Code.	26

(E) "Transportation network company driver" means an	27
individual who uses a personal vehicle to provide transportation	28
network company services. A transportation network company driver	29
is not required to be an employee of a transportation network	30
company.	31

(F)(1) "Transportation network company services" means	32
services provided by a transportation network company driver in	33
connection with the transportation network company and includes	34
both of the following:	35

(a) The period of time during which the transportation	36
network company driver is available to provide transportation	37
network company services by logging on to the transportation	38
network company's online application or platform, digital network,	39
or other system, including the time period before the	40
transportation network company driver has been matched with a	41
rider and after the driver has been matched with a rider;	42

(b) The time period during which a rider and any other	43
passengers are occupying the transportation network company	44
driver's personal vehicle.	45

(2) "Transportation network company services" end when the	46
transportation network company driver logs off the online	47
application or platform, digital network, or other system or when	48
the rider and any other passengers completely exit the personal	49
vehicle, whichever is later.	50

(3) "Transportation network company services" do not include	51
services provided by any of the following:	52

(a) A taxicab;

(b) A chauffeured limousine as defined in section 4501.01 of	54
the Revised Code;	55

(c) Any commercially registered vehicle and commercially	56
licensed driver;	57

(d) A ridesharing arrangement as defined in section 4921.01	58
of the Revised Code when any fee charged each individual	59
transported in such an arrangement is in such an amount as to	60
recover only the individual's share of the costs of operating the	61
vehicle for that purpose.	62

Sec. 3938.02. (A) Each transportation network company	63
driver, or a transportation network company on behalf of the	64
transportation network company driver or personal vehicle owner,	65
shall maintain an automobile liability insurance policy that does	66
all of the following:	67

(1) Provides primary coverage for liability arising from the	68
transportation network company driver's use of a personal vehicle	69
during the period of time the driver is providing transportation	70
network company services;	71

(2) Meets, at minimum, the proof of financial responsibility	72
requirements as described in division (B) of section 4509.80 of	73
the Revised Code and is one of the following:	74

(a) A commercial automobile liability insurance policy that	75
provides primary coverage for transportation network company	76
services similar in all material respects to coverage for	77
chauffeured limousines;	78

(b) An insurance rider to, or an endorsement of, the driver's	79
personal automobile liability insurance obtained to satisfy the	80
proof of financial responsibility required by Chapter 4509. of the	81
Revised Code. The rider or endorsement may be combined with an	82
excess policy provided by the transportation network company such	83
that the combined limits of the policies meet those required in	84
division (B) of section 4509.80 of the Revised Code;	85

(c) A commercial automobile liability insurance policy	86
purchased by the transportation network company that provides	87
primary coverage for the period of time when a transportation	88
network company driver is providing transportation network company	89
services. The policy shall also provide first party coverage to	90
the personal vehicle's owner at the same limits, deductibles, and	91
coverage options purchased by the owner on the owner's personal	92
automobile policy.	93

(3) The policies described in division (A)(2) of this section	94
shall attach and provide coverage regardless of whether a	95
transportation network company driver has agreed to waive coverage	96
or has entered into an agreement with the transportation network	97
company to hold harmless or indemnify the transportation network	98
company.	99

(B) If a transportation network company purchases a liability	100
insurance policy as described in division (A)(2)(c) of this	101
section, it shall provide documentation to the registrar of motor	102
vehicles evidencing the purchase of the policy within thirty day	103
after the effective date of the policy.	104

(C) A liability insurance policy required by this section may	105
be placed with either of the following:	106

(1) A domestic, foreign, or alien insurance company organized	107
or admitted under Title XXXIX of the Revised Code to issue such a	108
policy;	109

(2) An insurer not holding a license in this state if the	110
policy is obtained through an individual holding a surplus lines	111
broker's license in accordance with sections 3905.30 to 3905.36 of	112
the Revised Code.	113

(D)(1) If the transportation network company requires the	114
transportation network company driver to purchase an insurance	115
rider to, or an endorsement of, the driver's personal automobile	116
liability insurance policy, the company shall verify all of the	117
following:	118

(a) The driver or the owner of the personal vehicle has	119
purchased the rider or endorsement before allowing the driver to	120
provide transportation network company services;	121

(b) The rider or endorsement remains in force continuously	122
during the time the driver is providing transportation network	123
company services;	124

(c) The rider or endorsement covers transportation network	125
company services during the time the driver is providing those	126
services.	127

(2) A transportation network company that fails to verify the	128
information required in division (D)(1) of this section is liable,	129
in the absence of a liability insurance policy meeting the	130
requirements of division (A) of this section, for any damages or	131
losses that would have been covered by the required insurance	132
liability policy had the policy been in force when the damages or	133
losses were sustained.	134

Sec. 3938.03. (A) Notwithstanding any provision of the	135
Revised Code or any provision in a personal lines primary or	136
excess insurance policy to the contrary:	137

(1) A personal lines insurer providing primary or excess	138
coverage to the owner of a personal vehicle may exclude any and	139
all coverage and the duty to defend and indemnify afforded under	140
the personal lines insurance policy for any loss or injury that	141
occurs while an insured personal vehicle or driver is providing	142
transportation network company services. The right to exclude	143
coverage and the duty to defend and indemnify applies to all	144
coverage provided by the insurer of the driver or owner of the	145
personal vehicle including all of the following:	146

(a) Liability and physical damage coverage;

147

(b) Uninsured and underinsured motorist coverage described in	148
section 3937.18 of the Revised Code;	149

(c) Uninsured and underinsured motor vehicle property damage	150
coverage described in section 3987.181 of the Revised Code;	151

(d) Medical payments coverage for persons using or occupying	152
the personal vehicle;	153

(e) Comprehensive physical damage coverage;

154

(f) Collision physical damage coverage.

155

(2) A primary or excess insurer of the owner or driver may	156
notify an insured that the insurer has no duty to defend or	157
indemnify any individual or organization for liability for any	158
loss that occurs while that personal vehicle is providing	159
transportation network company services.	160

(B) Nothing in this section requires a personal lines primary	161
or excess automobile insurance policy to provide any coverage for	162
a personal vehicle or driver while providing transportation	163
network company services.	164

(C) As used in this section, "personal lines" means a policy	165
of property or casualty insurance issued to a natural person	166
primarily for personal or familial protection for personal	167
automobile, homeowner's, tenant's, mobile-homeowner's,	168
noncommercial dwelling fire, or personal umbrella coverage.	169

Sec. 3938.04. (A) For each personal vehicle used by a	170
transportation network company, the company shall provide a	171
written disclosure to the personal vehicle's owner and to any	172
transportation network company driver before the personal vehicle	173
is first used to provide transportation network company services	174
and before any change in insurance by the company. The disclosure	175
shall contain all of the following:	176

(1) A full and clear description of the insurance coverage	177
and limits provided under the company's primary insurance policy	178
along with the name, address, and telephone number of the insurer;	179

(2) Notice that the private passenger automobile policy of	180
the owner or any driver may exclude all coverage for any loss or	181
injury to the driver and to others, including property damage, and	182
may exclude the duty to defend or indemnify any person or	183
organization for liability for any loss or injury that occurs	184
during the time transportation network company services are being	185
provided.	186

(3) Notice that the private passenger automobile policy of	187
the owner or the driver may exclude coverage for damage to the	188
vehicle, medical payments, uninsured and underinsured motorist	189
damage, motor vehicle property damage, and other claims.	190

(B) A transportation network company shall prominently place	191
the disclosures required by division (A)(1) of this section in the	192
prospective transportation network company driver's written terms	193
of service and obtain the driver's acknowledgement of the terms of	194
service by electronic or written signature.	195

(C) If a transportation network company is providing primary	196
insurance coverage under division (A)(2)(c) of section 3938.02 of	197
the Revised Code, it shall provide direct notice of that fact to	198
the transportation network company driver, owner, and owner's	199
personal lines automobile insurer before the first use of a	200
personal vehicle for transportation network company services, or	201
upon the termination of the transportation network company	202
driver's participation in the transportation network company.	203

(D) Upon request of the owner's personal automobile insurer,	204
a transportation network company shall provide all data and	205
records associated with the personal vehicle while the vehicle is	206
available to provide transportation network company services.	207

(E) If a transportation network company is providing primary	208
insurance coverage under division (A)(2)(c) of section 3938.02 of	209
the Revised Code both of the following apply:	210

(1) The company shall assume liability, including the costs	211
of defense and indemnification, for a claim in which a dispute	212
exists as to whether the loss or injury giving rise to the claim	213
occurred while transportation network company services were being	214
provided. The company must notify the owner and the owner's	215
insurer of any such dispute within twenty-five business days after	216
receiving notice of the accident giving rise to that claim.	217

(2) If a personal vehicle's owner or the owner's insurer is	218
named as a defendant in a civil action for any loss or injury that	219
occurs while transportation network company services were being	220
provided, the company shall have the duty to defend and indemnify	221
the personal vehicle's owner, transportation network company	222
driver, and the owner's insurer. The company and its insurer shall	223
cooperate with the insurer of the personal vehicle's owner or	224
transportation network company driver.	225

Sec. 3938.05. (A) A transportation network company shall	226
maintain a record of all personal vehicles used to provide	227
transportation network company services that includes the	228
following:	229

(1) The name, address, driver's license number, and telephone	230
number of each transportation network company driver;	231

(2) The license plate number, make, model, year, and color of	232
each transportation network company driver's personal vehicle;	233

(3) The number of hours and miles that each transportation	234
network company driver is providing transportation network company	235
services.	236

(B)(1) The transportation network company shall maintain an	237
electronic record of each transportation network company service	238
provided by a transportation network company driver. The record	239
shall include all of the following information:	240

(a) The license plate number of the personal vehicle used;

241

(b) The name of the transportation network company driver;

242

243

(d) The date the transportation network company service was	244
provided;	245

(e) The time the transportation network company driver was	246
matched with the rider;	247

(f) The times the transportation network company service	248
began and ended;	249

(g) The number of miles of the transportation network company	250
service;	251

(h) The final address of the transportation network company	252
service;	253

(i) The total compensation paid, if any.

254

(2) The transportation network company shall maintain each	255
record required under division (B)(1) of this section for a period	256
of three years.	257

(C) A transportation network company shall not disclose to a	258
third party any personally identifiable information of a rider	259
unless one of the following applies:	260

(1) The rider knowingly consents to the disclosure;

261

(2) The disclosure is pursuant to a statutory or common law	262
duty, responsibility, or other legal obligation, including as part	263
of any accreditation, licensing, or registration requirement;	264

(3) The disclosure is made to the superintendent of insurance	265
in accordance with section 3901.04 of the Revised Code. The	266
information disclosed is not a public record under section 149.43	267
of the Revised Code.	268

Sec. 3938.06. No person shall violate section 3938.02,	269
3938.04, or 3938.05 of the Revised Code. Failure to maintain an	270
automobile liability insurance policy in violation of division (A)	271
of section 3938.02 of the Revised Code constitutes a violation by	272
both the transportation network company driver and the	273
transportation network company.	274

Sec. 3938.07. The regulation of insurance related to	275
transportation network company services and the provision of	276
transportation network company services is a matter of general	277
statewide interest that requires statewide regulation. Chapter	278
3938. of the Revised Code constitutes a comprehensive plan with	279
respect to all aspects of insurance for transportation network	280
companies and the provision of transportation network company	281
services, and it is the intent of the general assembly to preempt	282
any local ordinance, resolution, or other law adopted to impose,	283
require, or otherwise regulate insurance requirements for	284
transportation network companies and the provision of	285
transportation network company services.	286

Sec. 3938.99. Whoever violates section 3938.06 of the Revised	287
Code is guilty of a misdemeanor of the first degree.	288