Laws, Acts, and Legislation

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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