NY State Senate Bill S4108D

Archive: Last Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (16)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 17, 2016	referred to insurance delivered to assembly passed senate
Jun 09, 2016	amended on third reading 4108d
Jun 06, 2016	advanced to third reading
Jun 02, 2016	2nd report cal.
Jun 01, 2016	1st report cal.1283
Jan 06, 2016	referred to insurance
Jun 08, 2015	reported and committed to rules
Jun 03, 2015	print number 4108c
Jun 03, 2015	amend and recommit to insurance
Jun 02, 2015	print number 4108b
Jun 02, 2015	amend and recommit to insurance
Apr 30, 2015	print number 4108a
Apr 30, 2015	amend and recommit to insurance
Feb 27, 2015	referred to insurance

Votes

view votes

Jun 17, 2016 - floor Vote

S4108D

floor

Aye

Nay

Absent

Excused

Abstained

Jun 1, 2016 - Insurance committee Vote

S4108C

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Jun 8, 2015 - Insurance committee Vote

S4108C

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

D (Active)

Original

D (Active)

Co-Sponsors

S4108 - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Add §§3441 & 3455, amd §5103, Ins L

S4108 - Summary

Relates to transportation network companies.

S4108 - Sponsor Memo

BILL NUMBER:S4108

TITLE OF BILL:

An act to amend the insurance law, in relation to transportation
network companies

PURPOSE:

To clarify insurance provisions and requirements relative to
transportation network companies.

SUMMARY OF PROVISIONS:

Section one of this bill would add a new section 3441 to the insurance
law dealing with transportation network companies. The bill defines
"transportation network companies" and sets forth the auto insurance
coverage which is required to cover transportation network company
activities. The bill also clarifies that, unless otherwise expressly
provided for, the vehicle owner's personal auto insurance policy shall
not provide coverage for transportation network company activities
from the moment a participating driver logs on to the transportation
network company's online-enabled application or platform until the
driver logs off the online-enabled application or platform or the
passenger exits the vehicle, whichever is later. The bill also
requires transportation network companies or their insurers to

cooperate with insurers that are involved in any claims coverage
investigation to facilitate the exchange of relevant information,
including dates and times of any accidents involving participating
drivers and the times the driver logged on and off the transportation
network company's online-enabled application or platform.

Section two of this bill sets forth the effective date.

JUSTIFICATION:

Services offered by transportation network companies (TNC) are a
relatively new trend in major cities across the country.
Transportation network companies (also refereed to as "ride-share"
companies) use smartphone communications technology to connect
individuals who want a ride with drivers for a fee. Because the
drivers generally use their personal vehicles, there are insurance
coverage issues, as the typical standard personal automobile insurance
policy contains a "livery" exclusion which applies when the vehicle is
being rented out, or used to carry passengers for hire.  Consequently,
most personal automobile insurance policies do not cover any damages
or losses when a car is being used for commercial ride-sharing. The
National Association of Insurance Commissioners (NAIC) and more than
20 state insurance departments and public service commissions have
issued consumer alerts or advisories highlighting the potential
insurance gaps in coverage for TNC activity and encouraging TNC
drivers to talk with their insurer to understand their exposure.

Legislation is necessary to eliminate these insurance gaps and ensure
that private passenger auto insurance policyholders are not forced to
subsidize TNC business activities. The California Public Utilities
Commission was the first regulatory body to regulate these activities


and in 2014, enacted AB 2293 which creates a firewall protecting
personal auto insurance from subsidizing commercial TNC activities and
ensures that adequate insurance coverage is required to be provided
for TNC activities from the time when the driver logs on to the TNC
application through the time when the driver logs off of the
application.

This bill would establish requirements and protections similar to
those which have been adopted in other states relative to TNCs so as
to ensure adequate coverage for TNC activities and prevent the
subsidization of commercial TNC activities by personal auto insurance
policyholders In New York, TNCs are currently operating only in New
York City pursuant to Taxi and Limousine Commission regulations This
bill would address the TNC insurance issues which are hindering TNCs
from operating upstate and would help to allow this innovative new
transportation option to be made available upstate To support
innovation and allow these new TNC businesses to grow while at the
same time protecting consumers, it is vitally important that the
vehicles used in TNC services are properly insured and the public is
protected. This bill would establish clear guidelines relative to TNC
related insurance issues so that everyone knows where they stand
regarding insurance coverage for transportation network services

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect on the one hundred twentieth day after it
shall have become law.

S4108 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4108

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 27, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed 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:

  Section  1.  The insurance law is amended by adding a new section 3441
to read as follows:
  S 3441. TRANSPORTATION  NETWORK  COMPANIES.  (A)  NOTWITHSTANDING  ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
  (B)  FOR  PURPOSES  OF  THIS  SECTION  THE FOLLOWING DEFINITIONS SHALL
APPLY:
  (1) "TRANSPORTATION NETWORK COMPANY" MEANS AN ORGANIZATION, INCLUDING,
BUT NOT LIMITED TO, A CORPORATION, LIMITED LIABILITY  COMPANY,  PARTNER-
SHIP, SOLE PROPRIETOR, OR ANY OTHER ENTITY, OPERATING IN THIS STATE THAT
PROVIDES  PREARRANGED  TRANSPORTATION SERVICES FOR COMPENSATION USING AN
ONLINE-ENABLED APPLICATION OR PLATFORM TO CONNECT PASSENGERS WITH  DRIV-
ERS USING A PERSONAL VEHICLE.
  (2)  "PARTICIPATING  DRIVER"  OR  "DRIVER" MEANS ANY PERSON WHO USES A
VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-EN-
ABLED APPLICATION OR PLATFORM TO CONNECT WITH PASSENGERS.
  (3) "TRANSPORTATION NETWORK COMPANY INSURANCE" IS AN INSURANCE  POLICY
THAT  SPECIFICALLY COVERS A DRIVER'S USE OF A VEHICLE IN CONNECTION WITH
A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLICATION  OR  PLAT-
FORM.
  (C)  A  TRANSPORTATION  NETWORK  COMPANY  SHALL DISCLOSE IN WRITING TO
PARTICIPATING DRIVERS, AS PART OF ITS AGREEMENT WITH THOSE DRIVERS,  THE
INSURANCE  COVERAGE  AND  LIMITS  OF  LIABILITY  THAT THE TRANSPORTATION
NETWORK COMPANY PROVIDES WHILE THE DRIVER USES A VEHICLE  IN  CONNECTION
WITH  A  TRANSPORTATION  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09417-01-5

S. 4108                             2

PLATFORM, AND SHALL ADVISE A PARTICIPATING DRIVER IN  WRITING  THAT  THE
DRIVER'S  PERSONAL  AUTOMOBILE  INSURANCE  POLICY  MAY  NOT  PROVIDE ANY
REQUIRED OR OPTIONAL COVERAGE BECAUSE  THE  DRIVER  USES  A  VEHICLE  IN
CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLI-
CATION OR PLATFORM.
  (D)  A  TRANSPORTATION  NETWORK  COMPANY  AND ANY PARTICIPATING DRIVER
SHALL MAINTAIN TRANSPORTATION NETWORK COMPANY INSURANCE AS  PROVIDED  IN
THIS SECTION.
  (E)  THE  FOLLOWING REQUIREMENTS SHALL APPLY TO TRANSPORTATION NETWORK
COMPANY INSURANCE FROM THE MOMENT A PARTICIPATING DRIVER ACCEPTS A  RIDE
REQUEST  ON THE TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLICA-
TION OR PLATFORM UNTIL THE  DRIVER  COMPLETES  THE  TRANSACTION  ON  THE
ONLINE-ENABLED  APPLICATION  OR  PLATFORM OR UNTIL THE RIDE IS COMPLETE,
WHICHEVER IS LATER.
  (1) TRANSPORTATION NETWORK COMPANY  INSURANCE  SHALL  PROVIDE  PRIMARY
LIABILITY COVERAGE IN THE AMOUNT OF ONE MILLION DOLLARS FOR DEATH, BODI-
LY INJURY, AND PROPERTY DAMAGE.
  (2)  TRANSPORTATION  NETWORK COMPANY INSURANCE COVERAGE PROVIDED UNDER
THIS SUBDIVISION SHALL ALSO PROVIDE:
  (A) COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY  REQUIRE-
MENTS  SET  FORTH  IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS
CHAPTER AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND  REGULATIONS  PROMUL-
GATED THEREUNDER; AND
  (B)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
OF THIS CHAPTER IF THE PARTICIPATING DRIVER CARRIES SUCH COVERAGE ON HIS
OR HER PERSONAL AUTO POLICY UNLESS THAT INSURER IS PROVIDING TRANSPORTA-
TION NETWORK COMPANY INSURANCE TO THE DRIVER.
  (3)  THE REQUIREMENTS FOR THE COVERAGE REQUIRED BY THIS SUBSECTION MAY
BE SATISFIED BY ANY OF THE FOLLOWING:
  (A) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY  A  PARTIC-
IPATING DRIVER;
  (B) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY A TRANSPOR-
TATION NETWORK COMPANY; OR
  (C) ANY COMBINATION OF SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH.
  (D)  A  TRANSPORTATION  NETWORK COMPANY MAY MEET ITS OBLIGATIONS UNDER
THIS SECTION THROUGH A POLICY OBTAINED BY A PARTICIPATING DRIVER  PURSU-
ANT TO SUBPARAGRAPH (A) OR (C) OF THIS PARAGRAPH ONLY IF THE TRANSPORTA-
TION NETWORK COMPANY VERIFIES THAT THE POLICY IS MAINTAINED BY THE DRIV-
ER AND IS SPECIFICALLY WRITTEN TO COVER THE DRIVER'S USE OF A VEHICLE IN
CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLI-
CATION  OR  PLATFORM,  AND THE TRANSPORTATION NETWORK COMPANY ALSO MAIN-
TAINS INSURANCE THAT PROVIDES COVERAGE  IN  THE  EVENT  A  PARTICIPATING
DRIVER'S  INSURANCE  POLICY  UNDER SUBPARAGRAPH (A) OR (C) OF THIS PARA-
GRAPH HAS CEASED TO EXIST OR HAS BEEN  CANCELED,  OR  THE  PARTICIPATING
DRIVER DOES NOT OTHERWISE MAINTAIN TRANSPORTATION NETWORK COMPANY INSUR-
ANCE PURSUANT TO THIS SECTION.
  (4)  THE  INSURER  PROVIDING  TRANSPORTATION NETWORK COMPANY INSURANCE
UNDER THIS SUBSECTION SHALL HAVE THE DUTY TO DEFEND  AND  INDEMNIFY  THE
INSURED.
  (F)  THE  FOLLOWING REQUIREMENTS SHALL APPLY TO TRANSPORTATION NETWORK
COMPANY INSURANCE FROM THE MOMENT A PARTICIPATING DRIVER LOGS ON TO  THE
TRANSPORTATION  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM
UNTIL THE DRIVER ACCEPTS A REQUEST TO TRANSPORT A  PASSENGER,  AND  FROM
THE  MOMENT  THE  DRIVER COMPLETES THE TRANSACTION ON THE ONLINE-ENABLED
APPLICATION OR PLATFORM OR THE RIDE IS  COMPLETE,  WHICHEVER  IS  LATER,

S. 4108                             3

UNTIL  THE DRIVER EITHER ACCEPTS ANOTHER RIDE REQUEST ON THE ONLINE-ENA-
BLED APPLICATION OR PLATFORM OR LOGS OFF THE ONLINE-ENABLED  APPLICATION
OR PLATFORM:
  (1) TRANSPORTATION NETWORK COMPANY INSURANCE SHALL PROVIDE COVERAGE IN
SATISFACTION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
TRAFFIC  LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE
AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THER-
EUNDER. TRANSPORTATION NETWORK  COMPANY  INSURANCE  SHALL  ALSO  PROVIDE
MOTOR  VEHICLE  PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH NINE-
TEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN  OF
THIS CHAPTER IF THE PARTICIPATING DRIVER CARRIES SUCH COVERAGE ON HIS OR
HER PERSONAL AUTO POLICY UNLESS THAT INSURER IS PROVIDING TRANSPORTATION
NETWORK COMPANY INSURANCE TO THE DRIVER.
  (2)  THE REQUIREMENTS FOR THE COVERAGE REQUIRED BY THIS SUBSECTION MAY
BE SATISFIED BY ANY OF THE FOLLOWING:
  (A) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY  A  PARTIC-
IPATING DRIVER;
  (B) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY A TRANSPOR-
TATION NETWORK COMPANY; OR
  (C) ANY COMBINATION OF SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH.
  (D)  A  TRANSPORTATION  NETWORK COMPANY MAY MEET ITS OBLIGATIONS UNDER
THIS SECTION THROUGH A POLICY OBTAINED BY A PARTICIPATING DRIVER  PURSU-
ANT TO SUBPARAGRAPH (A) OR (C) OF THIS PARAGRAPH ONLY IF THE TRANSPORTA-
TION NETWORK COMPANY VERIFIES THAT THE POLICY IS MAINTAINED BY THE DRIV-
ER AND IS SPECIFICALLY WRITTEN TO COVER THE DRIVER'S USE OF A VEHICLE IN
CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLI-
CATION  OR  PLATFORM,  AND THE TRANSPORTATION NETWORK COMPANY ALSO MAIN-
TAINS INSURANCE THAT PROVIDES COVERAGE  IN  THE  EVENT  A  PARTICIPATING
DRIVER'S  INSURANCE  POLICY  UNDER SUBPARAGRAPH (A) OR (C) OF THIS PARA-
GRAPH HAS CEASED TO EXIST OR HAS BEEN  CANCELED,  OR  THE  PARTICIPATING
DRIVER DOES NOT OTHERWISE MAINTAIN TRANSPORTATION NETWORK COMPANY INSUR-
ANCE PURSUANT TO THIS SECTION.
  (3)  THE  INSURER  PROVIDING  TRANSPORTATION NETWORK COMPANY INSURANCE
UNDER THIS SUBSECTION SHALL HAVE THE DUTY TO DEFEND  AND  INDEMNIFY  THE
INSURED.
  (G)  COVERAGE  UNDER A TRANSPORTATION NETWORK COMPANY INSURANCE POLICY
SHALL NOT BE DEPENDENT ON A PERSONAL AUTOMOBILE INSURANCE  POLICY  FIRST
DENYING  A  CLAIM  NOR  SHALL  A PERSONAL AUTOMOBILE INSURANCE POLICY BE
REQUIRED TO FIRST DENY A CLAIM.
  (H) IN EVERY INSTANCE WHERE TRANSPORTATION NETWORK  COMPANY  INSURANCE
MAINTAINED  BY  A  PARTICIPATING  DRIVER  TO FULFILL THE INSURANCE OBLI-
GATIONS OF THIS SECTION HAS LAPSED OR CEASED TO EXIST,  THE  TRANSPORTA-
TION NETWORK COMPANY SHALL PROVIDE THE COVERAGE REQUIRED BY THIS SECTION
BEGINNING WITH THE FIRST DOLLAR OF A CLAIM.
  (I)  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO REQUIRE A PRIVATE
PASSENGER AUTOMOBILE INSURANCE  POLICY  TO  PROVIDE  PRIMARY  OR  EXCESS
COVERAGE DURING THE PERIOD OF TIME FROM THE MOMENT A PARTICIPATING DRIV-
ER  IN  A  TRANSPORTATION  NETWORK COMPANY LOGS ON TO THE TRANSPORTATION
NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM UNTIL THE DRIV-
ER LOGS OFF THE ONLINE-ENABLED APPLICATION OR PLATFORM OR THE  PASSENGER
EXITS THE VEHICLE, WHICHEVER IS LATER.
  (J)  DURING  THE PERIOD OF TIME FROM THE MOMENT A PARTICIPATING DRIVER
IN A TRANSPORTATION  NETWORK  COMPANY  LOGS  ON  TO  THE  TRANSPORTATION
NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM UNTIL THE DRIV-

S. 4108                             4

ER LOGS OFF THE ONLINE-ENABLED APPLICATION OR PLATFORM OR UNTIL THE RIDE
IS COMPLETE, WHICHEVER IS LATER, ALL OF THE FOLLOWING SHALL APPLY:
  (1) THE PARTICIPATING DRIVER'S OR THE VEHICLE OWNER'S PERSONAL AUTOMO-
BILE  INSURANCE POLICY SHALL NOT PROVIDE ANY COVERAGE TO THE PARTICIPAT-
ING DRIVER, VEHICLE  OWNER,  OR  ANY  THIRD  PARTY,  UNLESS  THE  POLICY
EXPRESSLY  PROVIDES FOR THAT COVERAGE DURING THE PERIOD OF TIME TO WHICH
THIS SUBDIVISION IS APPLICABLE, WITH OR WITHOUT A  SEPARATE  CHARGE,  OR
THE  POLICY  CONTAINS AN AMENDMENT OR ENDORSEMENT TO PROVIDE THAT COVER-
AGE, FOR WHICH A SEPARATELY STATED PREMIUM IS CHARGED.
  (2) THE PARTICIPATING DRIVER'S OR THE VEHICLE OWNER'S PERSONAL AUTOMO-
BILE INSURANCE POLICY SHALL NOT HAVE THE DUTY TO DEFEND OR INDEMNIFY FOR
THE DRIVER'S ACTIVITIES IN CONNECTION WITH  THE  TRANSPORTATION  NETWORK
COMPANY,  UNLESS  THE POLICY EXPRESSLY PROVIDES OTHERWISE FOR THE PERIOD
OF TIME TO WHICH THIS SUBDIVISION IS APPLICABLE, WITH OR WITHOUT A SEPA-
RATE CHARGE, OR THE POLICY  CONTAINS  AN  AMENDMENT  OR  ENDORSEMENT  TO
PROVIDE THAT COVERAGE, FOR WHICH A SEPARATELY STATED PREMIUM IS CHARGED.
  (K)  NOTWITHSTANDING ANY OTHER LAW, A PERSONAL AUTOMOBILE INSURER MAY,
AT ITS DISCRETION, OFFER AN AUTOMOBILE LIABILITY INSURANCE POLICY, OR AN
AMENDMENT OR ENDORSEMENT TO AN EXISTING POLICY  THAT  COVERS  A  PRIVATE
PASSENGER VEHICLE, STATION WAGON TYPE VEHICLE, SPORT UTILITY VEHICLE, OR
SIMILAR  TYPE  OF  VEHICLE WITH A PASSENGER CAPACITY OF EIGHT PERSONS OR
LESS, INCLUDING THE DRIVER, WHILE USED IN CONNECTION WITH A  TRANSPORTA-
TION  NETWORK  COMPANY'S  ONLINE-ENABLED APPLICATION OR PLATFORM ONLY IF
THE POLICY EXPRESSLY PROVIDES FOR THE COVERAGE DURING  THE  TIME  PERIOD
SPECIFIED  IN SUBSECTION (B) OF THIS SECTION, WITH OR WITHOUT A SEPARATE
CHARGE, OR THE POLICY CONTAINS AN AMENDMENT OR AN ENDORSEMENT TO PROVIDE
THAT COVERAGE, FOR WHICH A SEPARATELY STATED PREMIUM MAY BE CHARGED.
  (L) IN A  CLAIMS  COVERAGE  INVESTIGATION,  A  TRANSPORTATION  NETWORK
COMPANY  OR  ITS INSURER SHALL COOPERATE WITH INSURERS THAT ARE INVOLVED
IN ANY CLAIMS COVERAGE  INVESTIGATION  TO  FACILITATE  THE  EXCHANGE  OF
INFORMATION,  INCLUDING  THE  PROVISION  OF  DATES AND TIMES AT WHICH AN
ACCIDENT OCCURRED THAT INVOLVED A PARTICIPATING DRIVER AND  THE  PRECISE
TIMES THAT THE PARTICIPATING DRIVER LOGGED ON AND OFF THE TRANSPORTATION
NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM.
  (M)  A  PARTICIPATING DRIVER OF A TRANSPORTATION NETWORK COMPANY SHALL
CARRY PROOF OF TRANSPORTATION NETWORK COMPANY  INSURANCE  COVERAGE  WITH
HIM OR HER AT ALL TIMES DURING HIS OR HER USE OF A VEHICLE IN CONNECTION
WITH  A  TRANSPORTATION  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR
PLATFORM. IN THE EVENT OF AN  ACCIDENT,  A  PARTICIPATING  DRIVER  SHALL
PROVIDE  THIS INSURANCE COVERAGE INFORMATION TO ANY OTHER PARTY INVOLVED
IN THE ACCIDENT, AND TO A POLICE OFFICER, UPON REQUEST.
  (N) NOTWITHSTANDING ANY OTHER LAW TO THE  CONTRARY  AFFECTING  WHETHER
ONE  OR  MORE  POLICIES  OF  INSURANCE THAT MAY APPLY WITH RESPECT TO AN
OCCURRENCE IS PRIMARY OR EXCESS, THIS SECTION DETERMINES THE OBLIGATIONS
UNDER INSURANCE POLICIES ISSUED TO TRANSPORTATION NETWORK COMPANIES AND,
IF APPLICABLE, DRIVERS USING A VEHICLE IN CONNECTION WITH A  TRANSPORTA-
TION NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

Co-Sponsors

S4108A - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Add §§3441 & 3455, amd §5103, Ins L

S4108A - Summary

Relates to transportation network companies.

S4108A - Sponsor Memo

BILL NUMBER:S4108A

TITLE OF BILL:  An act to amend the insurance law, in relation to
transportation network companies

PURPOSE: To clarify insurance provisions and requirements relative to
transportation network companies

SUMMARY OF PROVISIONS:

Section one of this bill would add a new section 3441 to the insurance
law dealing with transportation network companies. The bill defines
"transportation network companies" and sets forth the auto insurance
coverage which is required to cover transportation network company
activities. The bill also clarifies that, unless otherwise expressly
provided for, the vehicle owner's personal auto insurance policy shall
not provide coverage for transportation network company activities
from the moment a participating driver logs on to the transportation
network company's online-enabled application or platform until the
driver logs off the online-enabled application or platform or' the
passenger exits the vehicle, whichever is later The bill also requires
transportation network companies or their insurers to cooperate with
insurers that are involved in any claims coverage investigation to
facilitate the exchange of relevant information, including dates and
times of any accidents involving participating drivers and the times
the driver logged on and off the transportation network company's

online-enabled application or platform.

Section two of this bill would add a new section 3445 to the insurance
law dealing with group insurance policies for transportation network
companies.

Section three of this bill amends subsection (b) of section 5103 of
the insurance law by adding a new paragraph 4 Section four of this
bill sets forth the effective date.

JUSTIFICATION:  Services offered by transportation network companies
(TNC) are a relatively new trend in major cities across the country.
Transportation network companies (also referred to as "ride-share"
companies) use smartphone communications technology to connect
individuals who want a ride with drivers for a fee. Because the
drivers generally use their personal vehicles, there are insurance
coverage issues, as the typical standard personal automobile insurance
policy contains a "livery" exclusion which applies when the vehicle is
being rented out, or used to carry passenger's for hire.
Consequently, most personal automobile insurance policies do not cover
any damages or losses when a car is being used for commercial
ride-sharing. The National Association of Insurance Commissioners
(NAIC) and more than 20 state insurance departments and public service
commissions have issued consumer alerts or advisories highlighting the
potential insurance gaps in coverage for TNC activity and encouraging
TNC drivers to talk with their insurer to understand their exposure.

Legislation is necessary to eliminate these insurance gaps and ensure
that private passenger auto insurance policyholders are not forced to
subsidize TNC business activities. The California Public Utilities
Commission was the first regulatory body to regulate these activities


and in 2014, enacted AB 2293 which creates a firewall protecting
personal auto insurance from subsidizing commercial TNC activities and
ensures that adequate insurance coverage is required to be provided
for TNC activities from the time when the driver logs on to the TNC
application through the time when the driver logs off of the
application.

This bill would establish requirements and protections similar to
those which have been adopted in other states relative to TNCs so as
to ensure adequate coverage for TNC activities and prevent the
subsidization of commercial TNC activities by personal auto insurance
policyholders. In New York, TNCs are currently operating only in New
York City pursuant to Taxi and Limousine Commission regulations. This
bill would address the TNC insurance issues which are hindering TNCs
from operating upstate and would help to allow this innovative new
transportation option to be made available upstate. To support
innovation and allow these new TNC businesses to grow while at the
same time protecting consumers, it is vitally important that the
vehicles used in TNC services are properly insured and the public is
protected. This bill would establish clear guidelines relative to TNC
related insurance issues so that everyone knows where they stand
regarding insurance coverage for transportation network services.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the one hundred
twentieth day after it shall have become law.

S4108A - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4108--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 27, 2015
                               ___________

Introduced  by  Sens.  SEWARD,  DILAN, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance  --  committee  discharged,  bill  amended,  ordered reprinted as
  amended and recommitted to said committee

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:

  Section  1.  The insurance law is amended by adding a new section 3441
to read as follows:
  S 3441. TRANSPORTATION  NETWORK  COMPANIES.  (A)  NOTWITHSTANDING  ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
  (B)  FOR  PURPOSES  OF  THIS  SECTION  THE FOLLOWING DEFINITIONS SHALL
APPLY:
  (1) "PERSONAL VEHICLE" MEANS A VEHICLE THAT IS USED BY  A  TRANSPORTA-
TION NETWORK COMPANY DRIVER AND IS:
  (A)  OWNED,  LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA-
TION NETWORK COMPANY DRIVER; AND
  (B) NOT A TAXICAB, LIVERY OR FOR-HIRE VEHICLE.
  (2) "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION,  SOFTWARE,
WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
NY  THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION NETWORK
COMPANY DRIVERS.
  (3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS  OPERATING  IN  THIS  STATE
THAT  USES  A  DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY
RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
RIDES. A TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEEMED TO  CONTROL,
DIRECT OR MANAGE THE PERSONAL VEHICLES OR TRANSPORTATION NETWORK COMPANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09417-02-5

S. 4108--A                          2

DRIVERS  THAT  CONNECT TO ITS DIGITAL NETWORK, EXCEPT WHERE AGREED TO BY
WRITTEN CONTRACT.
  (4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
VIDUAL WHO:
  (A)  RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES
FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF  A  FEE
TO THE TRANSPORTATION NETWORK COMPANY; AND
  (B)  USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANS-
PORTATION  NETWORK  COMPANY  IN  RETURN FOR COMPENSATION OR PAYMENT OF A
FEE.
  (5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS  AN  INDI-
VIDUAL  OR  PERSONS  WHO  USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION  NETWORK  DRIVER  WHO  PROVIDES
PREARRANGED  RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
POINTS CHOSEN BY THE RIDER.
  (6) "PREARRANGED RIDE" MEANS THE  PROVISION  OF  TRANSPORTATION  BY  A
DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
RIDER  THROUGH  A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER,  AND
ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
A  PREARRANGED  RIDE  DOES  NOT  INCLUDE TRANSPORTATION PROVIDED USING A
TAXICAB, LIVERY, OR OTHER FOR-HIRE VEHICLE.
  (7) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
  (C)  A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK
COMPANY ON THE DRIVER'S BEHALF THROUGH A GROUP  POLICY,  SHALL  MAINTAIN
PRIMARY AUTOMOBILE INSURANCE THAT:
  (1)  RECOGNIZES  THAT  THE  DRIVER IS A TRANSPORTATION NETWORK COMPANY
DRIVER OR OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS  FOR  COMPEN-
SATION AND COVERS THE DRIVER:
  (A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
NY'S DIGITAL NETWORK; OR
  (B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
  (2)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A PARTICIPATING TRANSPORTATION NETWORK COMPANY DRIVER IS  LOGGED  ON  TO
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
RECEIVE  TRANSPORTATION  REQUESTS  BUT  IS  NOT ENGAGED IN A PREARRANGED
RIDE:
  (A) PRIMARY AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF  AT  LEAST
FIFTY  THOUSAND  DOLLARS  FOR  DEATH  AND  BODILY INJURY PER PERSON, ONE
HUNDRED THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER  INCIDENT,  AND
TWENTY-FIVE  THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN SATIS-
FACTION OF  THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET  FORTH  IN
SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE AND ARTICLE
FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THEREUNDER.
  (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
ANY OF THE FOLLOWING:
  (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
  (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
  (3)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A TRANSPORTATION NETWORK COMPANY DRIVER  IS  ENGAGED  IN  A  PREARRANGED
RIDE:

S. 4108--A                          3

  (A)  PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST ONE
MILLION DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND  COVER-
AGE  IN  SATISFACTION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE  AND
ARTICLE  FIFTY-ONE  OF  THIS CHAPTER, AND REGULATIONS PROMULGATED THERE-
UNDER.
  (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
ANY OF THE FOLLOWING:
  (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
  (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
  (4)  IF  INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR THREE OF
THIS SUBSECTION HAS LAPSED OR DOES NOT PROVIDE  THE  REQUIRED  COVERAGE,
INSURANCE  MAINTAINED  BY A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE
THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
  (5) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY  MAINTAINED  BY  THE
TRANSPORTATION  NETWORK  COMPANY  SHALL  NOT  BE DEPENDENT ON A PERSONAL
AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
  (6) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
ER AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL  BE
ELIGIBLE  FOR  PLACEMENT  BY  AN EXCESS LINE BROKER LICENSED PURSUANT TO
ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (7) INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL  BE
DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION  FOUR  OF  SECTION  THREE  HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THER-
EUNDER, AND SUCH OTHER REQUIREMENTS THAT MAY APPLY FOR THE  PURPOSES  OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
  (8)  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL CARRY PROOF OF
COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
OR HER AT ALL TIMES DURING HIS OR HER USE OF  A  VEHICLE  IN  CONNECTION
WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
AN  ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE THIS
INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
MOBILE INSURERS AND INVESTIGATING POLICE OFFICERS,  UPON  REQUEST.  UPON
SUCH  REQUEST,  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL  ALSO
DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
TIGATING POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE  TRANS-
PORTATION  NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE AT
THE TIME OF AN ACCIDENT.
  (D) THE TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE  IN  WRITING  TO
TRANSPORTATION  NETWORK  COMPANY  DRIVERS  THE FOLLOWING BEFORE THEY ARE
ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
NETWORK COMPANY'S DIGITAL NETWORK:
  (1) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF  COVERAGE  AND  THE
LIMITS  FOR  EACH  COVERAGE,  THAT  THE  TRANSPORTATION  NETWORK COMPANY
PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
VEHICLE IN CONNECTION WITH A TRANSPORTATION  NETWORK  COMPANY'S  DIGITAL
NETWORK; AND

S. 4108--A                          4

  (2)  THAT  THE  TRANSPORTATION NETWORK COMPANY DRIVER'S OWN AUTOMOBILE
INSURANCE POLICY MIGHT NOT PROVIDE ANY  COVERAGE  WHILE  THE  DRIVER  IS
LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
AVAILABLE  TO  RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A PREAR-
RANGED RIDE, DEPENDING ON ITS TERMS.
  (E)  (1)  INSURERS  THAT  WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER  THE  POLICY  ISSUED  TO  AN
OWNER  OR  OPERATOR  OF  A  PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  PREARRANGED  RIDE.  THIS
RIGHT  TO  EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
  (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
  (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
  (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT  UNDER
THE  LAW  TO  THE  CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE  WHILE  THE
DRIVER  IS  LOGGED  ON  TO  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE  THE
DRIVER  OTHERWISE  USES  A  VEHICLE  TO TRANSPORT PASSENGERS FOR COMPEN-
SATION.
  (3) NOTHING SHALL BE DEEMED TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
COVERAGE  FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
  (4)  AUTOMOBILE  INSURERS  THAT  EXCLUDE  THE  COVERAGE  DESCRIBED  IN
SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
ANY  CLAIM  EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO INVALIDATE OR LIMIT AN  EXCLUSION  CONTAINED  IN  A  POLICY
INCLUDING  ANY  POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR  VEHICLES  USED
TO  CARRY  PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
PUBLIC.
  (5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM  AGAINST
A  DRIVER  THAT  IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER  INSURERS  THAT  PROVIDE  AUTOMOBILE
INSURANCE  TO  THE  SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
  (6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK  COMPA-
NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
OF  THIS  SECTION SHALL COOPERATE TO FACILITATE THE EXCHANGE OF RELEVANT
INFORMATION WITH DIRECTLY INVOLVED PARTIES AND ANY INSURER OF THE TRANS-
PORTATION NETWORK COMPANY DRIVER IF APPLICABLE,  INCLUDING  THE  PRECISE
TIMES  THAT A TRANSPORTATION NETWORK COMPANY DRIVER LOGGED ON AND OFF OF
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK IN THE TWELVE  HOUR
PERIOD  IMMEDIATELY  PRECEDING AND IN THE TWELVE HOUR PERIOD IMMEDIATELY
FOLLOWING THE ACCIDENT AND DISCLOSE TO ONE ANOTHER A  CLEAR  DESCRIPTION
OF  THE  COVERAGE,  EXCLUSIONS  AND LIMITS PROVIDED UNDER ANY AUTOMOBILE
INSURANCE MAINTAINED UNDER SUBSECTION (C) OF THIS SECTION.
  S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
  S 3455. GROUP INSURANCE POLICY FOR TRANSPORTATION  NETWORK  COMPANIES.
(A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:

S. 4108--A                          5

  (1)  "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR  HUNDRED  FORTY-ONE  OF
THIS ARTICLE.
  (2) "FINANCIAL RESPONSIBILITY COVERAGE" MEANS COVERAGE IN SATISFACTION
OF  THE  FINANCIAL  RESPONSIBILITY REQUIREMENTS SET FORTH IN SUBDIVISION
FOUR OF SECTION THREE HUNDRED ELEVEN OF THE  VEHICLE  AND  TRAFFIC  LAW,
SECTION  THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE, AND ARTICLE
FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED  THEREUNDER,  AND
SUCH  OTHER  REQUIREMENTS  THAT MAY APPLY FOR THE PURPOSES OF SATISFYING
THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT  TO  THE  USE  OR
OPERATION OF THE MOTOR VEHICLE.
  (3) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
  (4) "GROUP POLICY MEMBER" MEANS A TRANSPORTATION NETWORK COMPANY DRIV-
ER  AS  DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED
FORTY-ONE OF THIS ARTICLE.
  (5) "PREARRANGED RIDE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
  (6) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" SHALL HAVE THE
MEANING  SET  FORTH  IN  SUBSECTION  (B)  OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THIS ARTICLE.
  (7) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
  (B)  AN  INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A GROUP
POLICY TO A TRANSPORTATION NETWORK COMPANY AS A GROUP POLICYHOLDER  ONLY
IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  (C)  (1)  A GROUP POLICY SHALL PROVIDE COVERAGE FOR A PERSONAL VEHICLE
IN ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF  SECTION  THREE
THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
  (2) A GROUP POLICY MAY PROVIDE:
  (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT  TO  SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
OF THIS ARTICLE;
  (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF  SECTION  THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
  (C)  SUPPLEMENTAL  SPOUSAL  LIABILITY INSURANCE PURSUANT TO SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
SUBSECTION  MAY  BE  PROVIDED  IN  ONE GROUP POLICY OR IN SEPARATE GROUP
POLICIES.
  (4) A GROUP POLICY, INCLUDING CERTIFICATES,  SHALL  BE  ISSUED  BY  AN
INSURER  AUTHORIZED  OR  ELIGIBLE  TO  WRITE INSURANCE IN THIS STATE AND
SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE BROKER LICENSED PURSU-
ANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
  (D) THE PREMIUM FOR THE GROUP POLICY, INCLUDING CERTIFICATES,  MAY  BE
PAID BY THE GROUP POLICYHOLDER FROM THE FUNDS CONTRIBUTED:
  (1) WHOLLY BY THE GROUP POLICYHOLDER;
  (2) WHOLLY BY THE GROUP POLICY MEMBERS; OR
  (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP POLICY MEMBERS.
  (E)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:

S. 4108--A                          6

  (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
  (B) BE RETAINED BY THE GROUP POLICYHOLDER.
  (2)  ANY  POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
SUBSECTION SHALL BE:
  (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP POLICY MEMBERS, OR BOTH; OR
  (B) PAID OR REFUNDED TO THOSE GROUP POLICY MEMBERS INSURED ON THE DATE
THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF  DISTRIBUTED
BY  THE  GROUP  POLICYHOLDER,  OR ON THE DATE OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OR REFUND TO THE GROUP POLICY MEMBERS;
  (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THEN
THE INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT
OR REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION  PROCEDURE;
AND
  (III)  IF  THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
THEN THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY  OR  USE  THE
METHOD PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
  (3)  NOTWITHSTANDING  PARAGRAPHS  ONE AND TWO OF THIS SUBSECTION, IF A
DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A GROUP POLICY,  THE
PREMIUM  FOR  WHICH  WAS  PAID  OUT OF FUNDS CONTRIBUTED BY GROUP POLICY
MEMBERS SPECIFICALLY FOR THE COVERAGE, THEN THE DIVIDEND SHALL  BE  PAID
OR  REFUNDED  BY  THE  GROUP  POLICYHOLDER  TO  THE GROUP POLICY MEMBERS
INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE  GROUP  POLICY-
HOLDER  NET OF REASONABLE EXPENSES INCURRED BY THE GROUP POLICYHOLDER IN
PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP POLICY MEMBERS.
  (4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN  BY
AN INSURER TO A GROUP POLICYHOLDER OF EXCESS PREMIUMS PAID BY THAT GROUP
POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERIENCE, INCLUDING RETROSPEC-
TIVE  PREMIUM  CREDITS OR RETROSPECTIVE PREMIUM REFUNDS. THE TERM "DIVI-
DEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES RECEIVED BY A GROUP  POLI-
CYHOLDER  IN  CONNECTION WITH THE OPERATION OR ADMINISTRATION OF A GROUP
POLICY,  INCLUDING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR  SERVICES
PROVIDED BY THE GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
  (F)  THE  INSURER  MUST TREAT IN LIKE MANNER ALL ELIGIBLE GROUP POLICY
MEMBERS OF THE SAME CLASS AND STATUS.
  (G) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS  OF  SECTION
TWO  THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
AS AN INSURANCE AGENT OR INSURANCE BROKER, IN ANY  ADVERTISEMENT,  SIGN,
PAMPHLET,  CIRCULAR,  CARD,  OR  OTHER  PUBLIC ANNOUNCEMENT REFERRING TO
COVERAGE UNDER A GROUP POLICY OR CERTIFICATE.
  (H) EXCEPT AS PROVIDED IN SUBSECTION (I)  OF  THIS  SECTION,  A  GROUP
POLICY  OR  CERTIFICATE  SHALL  NOT BE SUBJECT TO SECTION THREE THOUSAND
FOUR HUNDRED TWENTY-FIVE OR SECTION THREE THOUSAND FOUR HUNDRED  TWENTY-
SIX OF THIS ARTICLE.
  (I)  (1)  AN INSURER MAY TERMINATE A GROUP POLICY ONLY IF CANCELLATION
IS BASED ON ONE OR MORE OF THE REASONS SET FORTH  IN  SUBPARAGRAPHS  (A)
THROUGH  (D)  OR  (F)  THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
  (2) AN INSURER MAY TERMINATE AN INDIVIDUAL CERTIFICATE ONLY IF CANCEL-
LATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPARAGRAPHS
(B) OR (C) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE  THOUSAND
FOUR  HUNDRED  TWENTY-FIVE OF THIS ARTICLE, PROVIDED, HOWEVER THAT WHERE

S. 4108--A                          7

THE PREMIUM IS DERIVED WHOLLY OR PARTIALLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER ALSO MAY CANCEL  THE  INDIVIDUAL  CERTIF-
ICATE  IF  CANCELLATION IS BASED ON THE REASON SET FORTH IN SUBPARAGRAPH
(A)  OF  PARAGRAPH  ONE OF SUBSECTION (C) OF SECTION THREE THOUSAND FOUR
HUNDRED TWENTY-FIVE OF THIS ARTICLE.
  (3) IF AN INSURER TERMINATES AN  INDIVIDUAL  CERTIFICATE  PURSUANT  TO
PARAGRAPH  TWO  OF  THIS  SUBSECTION,  THEN THE INSURER SHALL NOTIFY THE
GROUP POLICYHOLDER IN WRITING THAT THE INSURER HAS TERMINATED THE  INDI-
VIDUAL  CERTIFICATE AND THE GROUP POLICY MEMBER SHALL BE PROHIBITED FROM
PROVIDING A PREARRANGED RIDE.
  (4) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL CERTIF-
ICATES, SHALL NOT BECOME EFFECTIVE UNTIL TWENTY DAYS AFTER  THE  INSURER
MAILS  OR  DELIVERS  WRITTEN NOTICE OF CANCELLATION TO THE GROUP POLICY-
HOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY, EXCEPT  FIFTEEN  DAYS
WRITTEN  NOTICE  SHALL  BE  SUFFICIENT  WHERE  THE  CANCELLATION  IS FOR
NON-PAYMENT OF PREMIUM.
  (J) CANCELLATION BY THE GROUP POLICYHOLDER. A GROUP  POLICYHOLDER  MAY
CANCEL  A GROUP POLICY FOR ANY REASON UPON TWENTY DAYS WRITTEN NOTICE TO
THE INSURER AND EACH GROUP POLICY MEMBER.
  (K) CANCELLATION BY THE GROUP POLICY MEMBER. A GROUP POLICY MEMBER MAY
CANCEL OPTIONAL COVERAGE UPON PROVIDING NOTICE TO THE  INSURER  AND  THE
GROUP  POLICYHOLDER.  FOR  THE  PURPOSES  OF  THIS SUBSECTION, "OPTIONAL
COVERAGE" MEANS COVERAGE OTHER THAN  FINANCIAL  RESPONSIBILITY  COVERAGE
THAT AN INDIVIDUAL GROUP POLICY MEMBER PURCHASES ON AN OPTIONAL BASIS.
  (L) (1) A GROUP POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED
FOR  A  ONE-YEAR  POLICY  PERIOD  UNLESS THE GROUP POLICY PROVIDES FOR A
LONGER POLICY PERIOD.
  (2) A GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE  GROUP  POLICY
AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS THE INSURER MAILS OR DELIVERS
TO THE GROUP POLICYHOLDER WRITTEN NOTICE OF NONRENEWAL,  OR  CONDITIONAL
RENEWAL,  AT  LEAST FORTY-FIVE BUT NOT MORE THAN SIXTY DAYS PRIOR TO THE
EXPIRATION DATE SPECIFIED IN THE POLICY OR, IF  NO  DATE  IS  SPECIFIED,
THEN THE NEXT ANNIVERSARY DATE OF THE POLICY.
  (M)  EVERY  NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
FROM AN INSURER SHALL SET FORTH  THE  SPECIFIC  REASON  OR  REASONS  FOR
CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL.
  (N)  TERMINATION  FROM  THE  GROUP  SHALL  TERMINATE  THE GROUP POLICY
MEMBER'S COVERAGE.
  (O) IF, PRIOR TO THE EFFECTIVE DATE OF  CANCELLATION,  NONRENEWAL,  OR
CONDITIONAL  RENEWAL  OF  THE  GROUP  POLICY,  OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER, OR  BY  THE  GROUP  POLICY
MEMBER  IN  REGARD  TO  THE  GROUP POLICY MEMBER'S CERTIFICATE, COVERAGE
ATTACHES PURSUANT TO THE TERMS OF A  GROUP  POLICY,  THEN  THE  COVERAGE
SHALL BE EFFECTIVE UNTIL EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE
PROVIDED  IN THE GROUP POLICY NOTWITHSTANDING THE CANCELLATION, NONRENE-
WAL, OR CONDITIONAL NONRENEWAL OF THE GROUP POLICY.
  S 3. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
  (4) IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A  TRANSPORTATION
NETWORK  COMPANY  DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER AS SUCH
TERMS ARE DEFINED IN SUBSECTION  (B)  OF  SECTION  THREE  THOUSAND  FOUR
HUNDRED FORTY-ONE OF THIS CHAPTER.
  S 4. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

Co-Sponsors

S4108B - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Add §§3441 & 3455, amd §5103, Ins L

S4108B - Summary

Relates to transportation network companies.

S4108B - Sponsor Memo

BILL NUMBER:S4108B

TITLE OF BILL:

An act to amend the insurance law, in relation to transportation
network companies

PURPOSE:

To clarify insurance provisions and requirements relative to
transportation network companies.

SUMMARY OF PROVISIONS:

Sections 1 and 2 of the bill amend the insurance law by adding two new
sections to authorize the issuance of automobile insurance policies to
transportation network companies and transportation network company
drivers on a group basis and to regulate the interaction of private
passenger automobile insurance policies with insurance policies
covering transportation network services.

Sections 3 amends the insurance law by adding as a permissible
exclusion from certain required coverages injuries that occur while
operating a personal vehicle as a transportation network company
driver.

Section 4 is the effective date.

JUSTIFICATION:

Transportation Network Companies (TNCs) provide a digital platform
that matches consumers with a community of vetted local drivers
offering rides using their personal vehicles. Existing transportation
options alone can no longer fully accommodate growing populations, yet
80% of the seats in personal vehicles remain empty.  TNC platforms are
already filling those empty seats across the country by providing
additional transportation options to communities that need them most
and reducing the economic burden of car ownership.

The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic
congestion, curbs air pollution and provides last mile solutions to
commuters seeking to utilize existing transit options.  TNCs are
continuing to evolve to maximize these benefits with innovative
options in the largest markets where they have been able to grow
within the framework of reasonable regulation.

This bill would establish requirements and protections similar to
those which have been adopted in other states relative to TNCs so as
to ensure adequate coverage for TNC activities and prevent the
subsidization of commercial TNC activities by personal auto insurance
policyholders. In New York, TNCs are currently operating only in New
York City pursuant to Taxi and Limousine Commission regulations. This
bill would address the TNC insurance issues which are hindering TNCs


from operating upstate and would help to allow this innovative new
transportation option to be made available upstate To support
innovation and allow these new TNC businesses to grow while at the
same time protecting consumers, it is vitally important that the
vehicles used in TNC services are properly insured and the public is
protected. This bill would establish clear guidelines relative to TNC
related insurance issues so that everyone knows where they stand
regarding insurance coverage for transportation network services. This
bill would balance the need to ensure that necessary safety standards
are met by existing and emerging TNCs while enabling growth and
innovation to fully realize the benefits that consumers are demanding.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately after it shall have become law.

S4108B - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4108--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 27, 2015
                               ___________

Introduced  by  Sens.  SEWARD,  DILAN, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance  --  committee  discharged,  bill  amended,  ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

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:

  Section  1.  The insurance law is amended by adding a new section 3441
to read as follows:
  S 3441. TRANSPORTATION NETWORK COMPANIES.    (A)  NOTWITHSTANDING  ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
  (B)  FOR  PURPOSES  OF  THIS  SECTION  THE FOLLOWING DEFINITIONS SHALL
APPLY:
  (1) "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE USED BY A  TRANSPORTATION
NETWORK  COMPANY  DRIVER  AND  IS  OWNED OR LEASED BY THE TRANSPORTATION
NETWORK COMPANY DRIVER.
  (2) "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION,  SOFTWARE,
WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
NY  THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION NETWORK
COMPANY DRIVERS.
  (3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS  OPERATING  IN  THIS  STATE
THAT  USES  A  DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY
RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
RIDES. A TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEEMED TO  CONTROL,
DIRECT OR MANAGE THE PERSONAL VEHICLES OR TRANSPORTATION NETWORK COMPANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09417-03-5

S. 4108--B                          2

DRIVERS  THAT  CONNECT TO ITS DIGITAL NETWORK, EXCEPT WHERE AGREED TO BY
WRITTEN CONTRACT.
  (4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
VIDUAL WHO:
  (A) RECEIVES CONNECTIONS TO POTENTIAL RIDERS AND RELATED SERVICES FROM
A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE
TRANSPORTATION NETWORK COMPANY; AND
  (B)  USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANS-
PORTATION  NETWORK  COMPANY  IN  RETURN FOR COMPENSATION OR PAYMENT OF A
FEE.
  (5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS  AN  INDI-
VIDUAL  OR  PERSONS  WHO  USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION  NETWORK  DRIVER  WHO  PROVIDES
PREARRANGED  RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
POINTS CHOSEN BY THE RIDER.
  (6) "PREARRANGED RIDE" MEANS THE  PROVISION  OF  TRANSPORTATION  BY  A
DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
RIDER  THROUGH  A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER,  AND
ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
A  PREARRANGED  RIDE  DOES  NOT  INCLUDE TRANSPORTATION PROVIDED USING A
TAXICAB, LIVERY, LIMOUSINE, OR OTHER FOR-HIRE VEHICLE.
  (7) "GROUP POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED  PURSUANT  TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
  (C)  A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK
COMPANY ON THE DRIVER'S BEHALF THROUGH A GROUP  POLICY,  SHALL  MAINTAIN
PRIMARY AUTOMOBILE INSURANCE THAT:
  (1)  RECOGNIZES  THAT  THE  DRIVER IS A TRANSPORTATION NETWORK COMPANY
DRIVER OR OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS  FOR  COMPEN-
SATION AND COVERS THE DRIVER:
  (A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
NY'S DIGITAL NETWORK; OR
  (B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
  (2)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A PARTICIPATING TRANSPORTATION NETWORK COMPANY DRIVER IS  LOGGED  ON  TO
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
RECEIVE  TRANSPORTATION  REQUESTS  BUT  IS  NOT ENGAGED IN A PREARRANGED
RIDE:
  (A) PRIMARY AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF  AT  LEAST
FIFTY  THOUSAND  DOLLARS  FOR  DEATH  AND  BODILY INJURY PER PERSON, ONE
HUNDRED THOUSAND DOLLARS FOR DEATH AND BODILY INJURY PER  INCIDENT,  AND
TWENTY-FIVE  THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN SATIS-
FACTION OF  THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET  FORTH  IN
SECTION  THREE  THOUSAND  FOUR  HUNDRED  TWENTY OF THIS ARTICLE, ARTICLE
FIFTY-ONE OF THIS CHAPTER AND REGULATIONS PROMULGATED THEREUNDER.
  (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
ANY OF THE FOLLOWING:
  (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
  (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
  (3)  THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY WHILE
A TRANSPORTATION NETWORK COMPANY DRIVER  IS  ENGAGED  IN  A  PREARRANGED
RIDE:

S. 4108--B                          3

  (A)  PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST ONE
MILLION DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND  COVER-
AGE  IN  SATISFACTION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED  TWENTY  OF  THIS  ARTICLE,
ARTICLE  FIFTY-ONE  OF  THIS  CHAPTER AND REGULATIONS PROMULGATED THERE-
UNDER.
  (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
ANY OF THE FOLLOWING:
  (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
  (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
  (4)  IF  INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR THREE OF
THIS SUBSECTION HAS LAPSED OR DOES NOT PROVIDE  THE  REQUIRED  COVERAGE,
INSURANCE  MAINTAINED  BY A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE
THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
  (5) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY  MAINTAINED  BY  THE
TRANSPORTATION  NETWORK  COMPANY  SHALL  NOT  BE DEPENDENT ON A PERSONAL
AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
  (6) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
ER AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL  BE
ELIGIBLE  FOR  PLACEMENT  BY  AN EXCESS LINE BROKER LICENSED PURSUANT TO
ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (7) INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL  BE
DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION  FOUR  OF  SECTION  THREE  HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE FIFTY-ONE OF THIS CHAPTER, AND  REGULATIONS  PROMULGATED  THERE-
UNDER,  AND  SUCH  OTHER REQUIREMENTS THAT MAY APPLY FOR THE PURPOSES OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
  (8) A TRANSPORTATION NETWORK  COMPANY  DRIVER  SHALL  CARRY  PROOF  OF
COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
OR  HER  AT  ALL  TIMES DURING HIS OR HER USE OF A VEHICLE IN CONNECTION
WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
AN ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE  THIS
INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
MOBILE  INSURERS  AND  INVESTIGATING POLICE OFFICERS, UPON REQUEST. UPON
SUCH  REQUEST,  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL  ALSO
DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
TIGATING  POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE TRANS-
PORTATION NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE  AT
THE TIME OF AN ACCIDENT.
  (D)  THE  TRANSPORTATION  NETWORK COMPANY SHALL DISCLOSE IN WRITING TO
TRANSPORTATION NETWORK COMPANY DRIVERS THE  FOLLOWING  BEFORE  THEY  ARE
ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
NETWORK COMPANY'S DIGITAL NETWORK:
  (1)  THE  INSURANCE  COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE
LIMITS FOR  EACH  COVERAGE,  THAT  THE  TRANSPORTATION  NETWORK  COMPANY
PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
VEHICLE  IN  CONNECTION  WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK; AND

S. 4108--B                          4

  (2) THAT THE TRANSPORTATION NETWORK COMPANY  DRIVER'S  OWN  AUTOMOBILE
INSURANCE  POLICY  MIGHT  NOT  PROVIDE  ANY COVERAGE WHILE THE DRIVER IS
LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN  A  PREAR-
RANGED RIDE, DEPENDING ON ITS TERMS.
  (E)  (1)  INSURERS  THAT  WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER  THE  POLICY  ISSUED  TO  AN
OWNER  OR  OPERATOR  OF  A  PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  PREARRANGED  RIDE.  THIS
RIGHT  TO  EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
  (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
  (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
  (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT  UNDER
THE  LAW  TO  THE  CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE  WHILE  THE
DRIVER  IS  LOGGED  ON  TO  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE  THE
DRIVER  OTHERWISE  USES  A  VEHICLE  TO TRANSPORT PASSENGERS FOR COMPEN-
SATION.
  (3) NOTHING SHALL BE DEEMED TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
COVERAGE  FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
  (4)  AUTOMOBILE  INSURERS  THAT  EXCLUDE  THE  COVERAGE  DESCRIBED  IN
SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
ANY  CLAIM  EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO INVALIDATE OR LIMIT AN  EXCLUSION  CONTAINED  IN  A  POLICY
INCLUDING  ANY  POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR  VEHICLES  USED
TO  CARRY  PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
PUBLIC.
  (5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM  AGAINST
A  DRIVER  THAT  IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER  INSURERS  THAT  PROVIDE  AUTOMOBILE
INSURANCE  TO  THE  SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
  (6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK  COMPA-
NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
OF THIS SECTION SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED,
FACILITATE  THE  EXCHANGE OF RELEVANT INFORMATION WITH DIRECTLY INVOLVED
PARTIES AND ANY INSURER OF THE TRANSPORTATION NETWORK COMPANY DRIVER  IF
APPLICABLE,  INCLUDING  THE  PRECISE TIMES THAT A TRANSPORTATION NETWORK
COMPANY DRIVER LOGGED ON AND OFF OF THE TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING  AND  IN
THE  TWELVE  HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE
TO ONE ANOTHER A CLEAR  DESCRIPTION  OF  THE  COVERAGE,  EXCLUSIONS  AND
LIMITS   PROVIDED   UNDER  ANY  AUTOMOBILE  INSURANCE  MAINTAINED  UNDER
SUBSECTION (C) OF THIS SECTION.
  S 2. The insurance law is amended by adding a new section 3455 to read
as follows:

S. 4108--B                          5

  S 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES.   (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
  (1)  "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR  HUNDRED  FORTY-ONE  OF
THIS ARTICLE.
  (2)  "CERTIFICATE"  OR  "CERTIFICATE  OF  INSURANCE" MEANS ANY POLICY,
CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT  THERE-
TO,  ISSUED  TO  A  GROUP  MEMBER UNDER A TRANSPORTATION NETWORK COMPANY
GROUP POLICY.
  (3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY"  OR  "GROUP  POLICY"
MEANS  GROUP  POLICY, INCLUDING CERTIFICATE ISSUED TO THE GROUP MEMBERS,
WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE
POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY  AND  TO
GROUP MEMBERS:
  (A)  IN  ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF SECTION
THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE;
  (B) OF THE TYPE DESCRIBED  IN  PARAGRAPHS  THIRTEEN,  FOURTEEN  AND/OR
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER; AND
  (C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY  REQUIREMENTS  SET
FORTH  IN  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
TRAFFIC  LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMUL-
GATED THEREUNDER.
  (4) "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK COMPANY DRIVER"  AS
DEFINED  IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-
ONE OF THIS ARTICLE.
  (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
  (6) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
  (B)  AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS-
PORTATION NETWORK COMPANY  GROUP  POLICY  TO  A  TRANSPORTATION  NETWORK
COMPANY  AS  A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION.
  (C)(1) A TRANSPORTATION NETWORK COMPANY  GROUP  POLICY  SHALL  PROVIDE
COVERAGE  FOR  A PERSONAL VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF
SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF  THIS
ARTICLE.
  (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
  (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT  TO  SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
OF THIS ARTICLE;
  (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF  SECTION  THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
  (C)  SUPPLEMENTAL  SPOUSAL  LIABILITY INSURANCE PURSUANT TO SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
SUBSECTION  MAY  BE  PROVIDED  IN  ONE GROUP POLICY OR IN SEPARATE GROUP
POLICIES.
  (4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY,  INCLUDING  CERTIF-
ICATES,  SHALL  BE  ISSUED BY AN INSURER AUTHORIZED OR ELIGIBLE TO WRITE

S. 4108--B                          6

INSURANCE IN THIS STATE AND SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS
LINE BROKER LICENSED PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
  (D)  THE  PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP  POLICYHOLDER  FROM  THE
FUNDS CONTRIBUTED:
  (1) WHOLLY BY THE GROUP POLICYHOLDER;
  (2) WHOLLY BY THE GROUP MEMBERS; OR
  (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
  (E)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
  (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
  (B) BE RETAINED BY THE GROUP POLICYHOLDER.
  (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT,  OR  RETROSPEC-
TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
SUBSECTION SHALL BE:
  (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
  (B)  PAID  OR  REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF  DISTRIBUTED  BY
THE  GROUP  POLICYHOLDER,  OR  ON  THE  DATE  OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
  (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND,  THE
INSURER  SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
  (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT  OR  REFUND,
THE  INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
  (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS  SUBSECTION,  IF  A
DIVIDEND  ACCRUES  UPON  TERMINATION  OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR  WHICH  WAS  PAID  OUT  OF
FUNDS  CONTRIBUTED  BY  GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY  THE  GROUP  POLICYHOLDER  TO  THE
GROUP  MEMBERS  INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES  INCURRED  BY  THE  GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
  (4)  FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY  OF  EXCESS
PREMIUMS  TO  THE  GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR  RETROSPECTIVE  PREMIUM
REFUNDS.  THE  TERM  "DIVIDEND"  DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION  WITH  THE  OPERATION  OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
ING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
  (F) THE INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE  GROUP  MEMBERS
OF THE SAME CLASS AND STATUS.
  (G)  EACH  POLICY  WRITTEN  PURSUANT TO THIS SECTION SHALL PROVIDE PER
OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER  IN  AN  AMOUNT  NOT
LESS  THAN  THAT  REQUIRED BY OF SUBDIVISION TWO OF SECTION TWO THOUSAND
TWO HUNDRED THREE OF THE VEHICLE AND TRAFFIC LAW, AND MAY PROVIDE COVER-
AGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.

S. 4108--B                          7

  (H) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH  GROUP  MEMBER
INSURED  UNDER  THE  TRANSPORTATION  NETWORK  COMPANY  GROUP POLICY. THE
INSURER OR THE GROUP POLICYHOLDER SHALL  ALSO  BE  RESPONSIBLE  FOR  THE
MAILING  OR  DELIVERY  TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF
INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A  CHANGE
IN  LIMITS;  CHANGE  IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER  THE  TRANSPORTATION
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
  (2)  THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED  BY  REFERENCE  AND  A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
  (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE  INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
THE GROUP MEMBERS THAT, IF THE  MEMBER  HAS  OTHER  INSURANCE  COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
  (I)  A  GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME  MANNER
AS  AN  AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A  TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
  (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO  SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF  THIS  ARTICLE;  PROVIDED  THAT  THE
FOLLOWING  REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
  (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY  IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C)  OF  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT  WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
  (B)  WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF  THE  REASONS  SET  FORTH  IN
SUBPARAGRAPH  (B),  (C)  OR  (H)  OF  PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
  (2) (A) AN INSURER'S CANCELLATION OF A  GROUP  POLICY,  INCLUDING  ALL
CERTIFICATES,  SHALL  NOT  BECOME  AFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION  TO  THE  GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
  (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY  THE  GROUP  MEMBER  SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP  POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
  (II)  WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE  COVERAGE,  THE  GROUP  POLICY  HOLDER
SHALL  MAIL  OR  DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND  THE  EFFECTIVE
DATE  OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.

S. 4108--B                          8

  (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE  SHALL  NOT
BECOME  EFFECTIVE  UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
MAILING ADDRESS AND TO THE GROUP POLICYHOLDER  AT  THE  MAILING  ADDRESS
SHOWN IN THE GROUP POLICY.
  (3)  (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A  REASON  UPON  THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
  (B)  THE  GROUP  POLICYHOLDER  SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S  CANCELLATION  OF
THE  GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE  TO  THE
GROUP  MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
  (4) A GROUP MEMBER MAY CANCEL OPTIONAL COVERAGE UPON PROVIDING  NOTICE
TO  THE  INSURER  AND  THE  GROUP POLICYHOLDER. FOR THE PURPOSES OF THIS
PARAGRAPH, "OPTIONAL  COVERAGE"  MEANS  COVERAGE  OTHER  THAN  FINANCIAL
RESPONSIBILITY  REQUIREMENTS  DESCRIBED IN SUBPARAGRAPH (C) OF PARAGRAPH
THREE OF SUBSECTION (A) OF THIS SECTION THAT AN INDIVIDUAL GROUP  MEMBER
PURCHASES ON AN OPTIONAL BASIS.
  (5) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY  AND  ALL  CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR
POLICY PERIOD.
  (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM  BILLED  TO  THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
  (I)  THE  INSURER  MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
  (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE  EXPIRATION  DATE
SPECIFIED  IN  THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER-
SARY DATE OF THE POLICY.
  (6) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH  GROUP  MEMBER
ADVISING  THE  GROUP  MEMBER  OF  NONRENEWAL OF THE GROUP POLICY AND THE
EFFECTIVE DATE OF NONRENEWAL.  THE  GROUP  POLICYHOLDER  SHALL  MAIL  OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
  (7)  EVERY  NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION,  NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
  (8) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE  TO  A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE
GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR  COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
  (B)  A  GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION
TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR  COVERAGE  HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
  (9)  (A)  IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL,
OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR  A  CERTIFICATE,  WHETHER
INITIATED  BY  THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN
REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT  TO
THE  TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL
EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED  IN  THE  GROUP
POLICY  NOTWITHSTANDING  THE  CANCELLATION,  NONRENEWAL  OR  CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.

S. 4108--B                          9

  (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH  THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
  (K)  ANY  MAILING  OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED
UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL  IF  CONSENT  TO  SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
  (L) FORMS AND RATES FOR ANY GROUP POLICY ISSUED OR ISSUED FOR DELIVERY
IN  THIS  STATE  PURSUANT TO THIS SECTION SHALL BE FILED WITH THE SUPER-
INTENDENT IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THIS CHAPTER.   THE
SUPERINTENDENT  SHALL  NOT  APPROVE  FOR  DELIVERY ANY POLICY UNDER THIS
ARTICLE FOR A VEHICLE WHICH IS LICENSED TO OPERATE BY A TAXI AND  LIMOU-
SINE COMMISSION, IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE.
  S 3. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
  (4)  IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A TRANSPORTATION
NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER  AS  SUCH
TERMS  ARE  DEFINED  IN  SUBSECTION  (B)  OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THIS CHAPTER.
  S 4. This act shall take effect immediately.

Co-Sponsors

S4108C - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Add §§3441 & 3455, amd §5103, Ins L

S4108C - Summary

Relates to transportation network companies.

S4108C - Sponsor Memo

BILL NUMBER:S4108C

TITLE OF BILL:  An act to amend the insurance law, in relation to
transportation network companies

PURPOSE: To clarify insurance provisions and requirements relative to
transportation network companies.

SUMMARY OF PROVISIONS:

Sections 1 and 2 of the bill amend the insurance law by adding two new
sections to authorize the issuance of automobile insurance policies to
transportation network companies and transportation network company
drivers on a group basis and to regulate the interaction of private
passenger automobile insurance policies with insurance policies
covering transportation network services.

Sections 3 amends the insurance law by adding as a permissible
exclusion from certain required coverages injuries that occur while
operating a personal vehicle as a transportation network company
driver.

Section 4 is the effective date.

JUSTIFICATION: Transportation Network Companies (TNCs) provide a
digital platform that matches consumers with a community of vetted

local drivers offering rides using their personal vehicles. Existing
transportation options alone can no longer fully accommodate growing
populations, yet 80% of the seats in personal vehicles remain empty
TNC platforms are already filling those empty seats across the country
by providing additional transportation options to communities that
need them most and reducing the economic burden of car ownership.

The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic
congestion, curbs air pollution and provides last mile solutions to
commuters seeking to utilize existing transit options.  TNCs are
continuing to evolve to maximize these benefits with innovative
options in the largest markets where they have been able to grow
within the framework of reasonable regulation.

This bill would establish requirements and protections similar to
those which have been adopted in other states relative to TNCs so as
to ensure adequate coverage for TNC activities and prevent the
subsidization of commercial TNC activities by personal auto insurance
policyholders. In New York, TNCs are currently operating only in New
York City pursuant to Taxi and Limousine Commission regulations. This
bill would address the TNC insurance issues which are hindering TNCs
from operating upstate and would help to allow this innovative new
transportation option to be made available upstate. To support
innovation and allow these new TNC businesses to grow while at the
same time protecting consumers, it is vitally important that the
vehicles used in TNC services are properly insured and the public is
protected. This bill would establish clear guidelines relative to TNC


related insurance issues so that everyone knows where they stand
regarding insurance coverage for transportation network services. This
bill would balance the need to ensure that necessary safety standards
are met by existing and emerging TNCs while enabling growth and
innovation to fully realize the benefits that consumers are demanding.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS:  None.

EFFECTIVE DATE: This act shall take effect immediately.

S4108C - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4108--C

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 27, 2015
                               ___________

Introduced  by  Sens.  SEWARD,  DILAN, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance  --  committee  discharged,  bill  amended,  ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- committee discharged, bill amended, ordered reprinted  as
  amended and recommitted to said committee

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:

  Section 1. The insurance law is amended by adding a new  section  3441
to read as follows:
  S  3441.  TRANSPORTATION  NETWORK COMPANIES.   (A) NOTWITHSTANDING ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
  (B) FOR PURPOSES OF  THIS  SECTION  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY:
  (1)  "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE USED BY A TRANSPORTATION
NETWORK COMPANY DRIVER AND IS OWNED  OR  LEASED  BY  THE  TRANSPORTATION
NETWORK COMPANY DRIVER.
  (2)  "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION, SOFTWARE,
WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
NY THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION  NETWORK
COMPANY DRIVERS.
  (3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE  PROPRIETORSHIP,  OR  OTHER  ENTITY THAT IS OPERATING IN THIS STATE
THAT USES A DIGITAL NETWORK TO CONNECT  TRANSPORTATION  NETWORK  COMPANY
RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
RIDES.  A TRANSPORTATION NETWORK COMPANY SHALL NOT BE DEEMED TO CONTROL,
DIRECT OR MANAGE THE PERSONAL VEHICLES OR TRANSPORTATION NETWORK COMPANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09417-05-5

S. 4108--C                          2

DRIVERS THAT CONNECT TO ITS DIGITAL NETWORK, EXCEPT WHERE AGREED  TO  BY
WRITTEN CONTRACT.
  (4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
VIDUAL WHO:
  (A) RECEIVES CONNECTIONS TO POTENTIAL RIDERS AND RELATED SERVICES FROM
A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE
TRANSPORTATION NETWORK COMPANY; AND
  (B)  USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANS-
PORTATION  NETWORK  COMPANY  IN  RETURN FOR COMPENSATION OR PAYMENT OF A
FEE.
  (5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS  AN  INDI-
VIDUAL  OR  PERSONS  WHO  USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION  NETWORK  DRIVER  WHO  PROVIDES
PREARRANGED  RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
POINTS CHOSEN BY THE RIDER.
  (6) "PREARRANGED RIDE" MEANS THE  PROVISION  OF  TRANSPORTATION  BY  A
DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
RIDER  THROUGH  A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER,  AND
ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
  (7)  "GROUP  POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED PURSUANT TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
  (C) A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION  NETWORK
COMPANY  ON  THE  DRIVER'S BEHALF THROUGH A GROUP POLICY, SHALL MAINTAIN
PRIMARY AUTOMOBILE INSURANCE THAT:
  (1) RECOGNIZES THAT THE DRIVER IS  A  TRANSPORTATION  NETWORK  COMPANY
DRIVER  OR  OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS FOR COMPEN-
SATION AND COVERS THE DRIVER:
  (A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
NY'S DIGITAL NETWORK; OR
  (B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
  (2) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY  WHILE
A  PARTICIPATING  TRANSPORTATION  NETWORK COMPANY DRIVER IS LOGGED ON TO
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
RECEIVE TRANSPORTATION REQUESTS BUT IS  NOT  ENGAGED  IN  A  PREARRANGED
RIDE:
  (A)  PRIMARY  AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF AT LEAST
FIFTY THOUSAND DOLLARS FOR DEATH  AND  BODILY  INJURY  PER  PERSON,  ONE
HUNDRED  THOUSAND  DOLLARS FOR DEATH AND BODILY INJURY PER INCIDENT, AND
TWENTY-FIVE THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN  SATIS-
FACTION  OF  THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET  FORTH IN
SECTION THREE THOUSAND FOUR HUNDRED  TWENTY  OF  THIS  ARTICLE,  ARTICLE
FIFTY-ONE OF THIS CHAPTER AND REGULATIONS PROMULGATED THEREUNDER.
  (B)  THE  COVERAGE  REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
  (I) AUTOMOBILE INSURANCE  MAINTAINED  BY  THE  TRANSPORTATION  NETWORK
COMPANY DRIVER; OR
  (II)  AUTOMOBILE  INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
  (3) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY  WHILE
A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  IS ENGAGED IN A PREARRANGED
RIDE:
  (A) PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST  ONE
MILLION  DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND COVER-

S. 4108--C                          3

AGE IN SATISFACTION OF THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET
FORTH  IN  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE FIFTY-ONE OF THIS CHAPTER  AND  REGULATIONS  PROMULGATED  THERE-
UNDER.
  (B)  THE  COVERAGE  REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
  (I) AUTOMOBILE INSURANCE  MAINTAINED  BY  THE  TRANSPORTATION  NETWORK
COMPANY DRIVER; OR
  (II)  AUTOMOBILE  INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
  (4) IF INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR  THREE  OF
THIS  SUBSECTION  HAS  LAPSED OR DOES NOT PROVIDE THE REQUIRED COVERAGE,
INSURANCE MAINTAINED BY A TRANSPORTATION NETWORK COMPANY  SHALL  PROVIDE
THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
  (5)  COVERAGE  UNDER  AN AUTOMOBILE INSURANCE POLICY MAINTAINED BY THE
TRANSPORTATION NETWORK COMPANY SHALL NOT  BE  DEPENDENT  ON  A  PERSONAL
AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
  (6) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
ER  AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL BE
ELIGIBLE FOR PLACEMENT BY AN EXCESS LINE  BROKER  LICENSED  PURSUANT  TO
ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (7)  INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL BE
DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE  FIFTY-ONE  OF  THIS CHAPTER, AND REGULATIONS PROMULGATED THERE-
UNDER, AND SUCH OTHER REQUIREMENTS THAT MAY APPLY FOR  THE  PURPOSES  OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
  (8)  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL CARRY PROOF OF
COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
OR HER AT ALL TIMES DURING HIS OR HER USE OF  A  VEHICLE  IN  CONNECTION
WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
AN  ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE THIS
INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
MOBILE INSURERS AND INVESTIGATING POLICE OFFICERS,  UPON  REQUEST.  UPON
SUCH  REQUEST,  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL  ALSO
DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
TIGATING POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE  TRANS-
PORTATION  NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE AT
THE TIME OF AN ACCIDENT.
  (D) THE TRANSPORTATION NETWORK COMPANY SHALL DISCLOSE  IN  WRITING  TO
TRANSPORTATION  NETWORK  COMPANY  DRIVERS  THE FOLLOWING BEFORE THEY ARE
ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
NETWORK COMPANY'S DIGITAL NETWORK:
  (1) THE INSURANCE COVERAGE, INCLUDING THE TYPES OF  COVERAGE  AND  THE
LIMITS  FOR  EACH  COVERAGE,  THAT  THE  TRANSPORTATION  NETWORK COMPANY
PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
VEHICLE IN CONNECTION WITH A TRANSPORTATION  NETWORK  COMPANY'S  DIGITAL
NETWORK; AND
  (2)  THAT  THE  TRANSPORTATION NETWORK COMPANY DRIVER'S OWN AUTOMOBILE
INSURANCE POLICY MIGHT NOT PROVIDE ANY  COVERAGE  WHILE  THE  DRIVER  IS
LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS

S. 4108--C                          4

AVAILABLE  TO  RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A PREAR-
RANGED RIDE, DEPENDING ON ITS TERMS.
  (E)  (1)  INSURERS  THAT  WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER  THE  POLICY  ISSUED  TO  AN
OWNER  OR  OPERATOR  OF  A  PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  PREARRANGED  RIDE.  THIS
RIGHT  TO  EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
  (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
  (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
  (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT  UNDER
THE  LAW  TO  THE  CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE  WHILE  THE
DRIVER  IS  LOGGED  ON  TO  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE  THE
DRIVER  OTHERWISE  USES  A  VEHICLE  TO TRANSPORT PASSENGERS FOR COMPEN-
SATION.
  (3) NOTHING SHALL BE DEEMED TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
COVERAGE  FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
  (4)  AUTOMOBILE  INSURERS  THAT  EXCLUDE  THE  COVERAGE  DESCRIBED  IN
SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
ANY  CLAIM  EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO INVALIDATE OR LIMIT AN  EXCLUSION  CONTAINED  IN  A  POLICY
INCLUDING  ANY  POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR  VEHICLES  USED
TO  CARRY  PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
PUBLIC.
  (5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM  AGAINST
A  DRIVER  THAT  IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER  INSURERS  THAT  PROVIDE  AUTOMOBILE
INSURANCE  TO  THE  SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
  (6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK  COMPA-
NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
OF THIS SECTION SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED,
FACILITATE  THE  EXCHANGE OF RELEVANT INFORMATION WITH DIRECTLY INVOLVED
PARTIES AND ANY INSURER OF THE TRANSPORTATION NETWORK COMPANY DRIVER  IF
APPLICABLE,  INCLUDING  THE  PRECISE TIMES THAT A TRANSPORTATION NETWORK
COMPANY DRIVER LOGGED ON AND OFF OF THE TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING  AND  IN
THE  TWELVE  HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE
TO ONE ANOTHER A CLEAR  DESCRIPTION  OF  THE  COVERAGE,  EXCLUSIONS  AND
LIMITS   PROVIDED   UNDER  ANY  AUTOMOBILE  INSURANCE  MAINTAINED  UNDER
SUBSECTION (C) OF THIS SECTION.
  S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
  S 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES.   (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:

S. 4108--C                          5

  (1)  "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET FORTH
IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR  HUNDRED  FORTY-ONE  OF
THIS ARTICLE.
  (2)  "CERTIFICATE"  OR  "CERTIFICATE  OF  INSURANCE" MEANS ANY POLICY,
CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT  THERE-
TO,  ISSUED  TO  A  GROUP  MEMBER UNDER A TRANSPORTATION NETWORK COMPANY
GROUP POLICY.
  (3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY"  OR  "GROUP  POLICY"
MEANS  GROUP  POLICY, INCLUDING CERTIFICATE ISSUED TO THE GROUP MEMBERS,
WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE
POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY  AND  TO
GROUP MEMBERS:
  (A)  IN  ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C) OF SECTION
THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE;
  (B) OF THE TYPE DESCRIBED  IN  PARAGRAPHS  THIRTEEN,  FOURTEEN  AND/OR
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER; AND
  (C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY  REQUIREMENTS  SET
FORTH  IN  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
TRAFFIC  LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMUL-
GATED THEREUNDER.
  (4) "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK COMPANY DRIVER"  AS
DEFINED  IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-
ONE OF THIS ARTICLE.
  (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
  (6) "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN  SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
  (B)  AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS-
PORTATION NETWORK COMPANY  GROUP  POLICY  TO  A  TRANSPORTATION  NETWORK
COMPANY  AS  A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION.
  (C)(1) A TRANSPORTATION NETWORK COMPANY  GROUP  POLICY  SHALL  PROVIDE
COVERAGE  FOR  A PERSONAL VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF
SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF  THIS
ARTICLE.
  (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
  (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT  TO  SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE
OF THIS ARTICLE;
  (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF  SECTION  THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
  (C)  SUPPLEMENTAL  SPOUSAL  LIABILITY INSURANCE PURSUANT TO SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
SUBSECTION  MAY  BE  PROVIDED  IN  ONE GROUP POLICY OR IN SEPARATE GROUP
POLICIES.
  (4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY,  INCLUDING  CERTIF-
ICATES,  SHALL  BE  ISSUED BY AN INSURER AUTHORIZED OR ELIGIBLE TO WRITE
INSURANCE IN THIS STATE AND SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS
LINE BROKER LICENSED PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.

S. 4108--C                          6

  (D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY  GROUP  POLICY,
INCLUDING  CERTIFICATES  MAY  BE PAID BY THE GROUP POLICYHOLDER FROM THE
FUNDS CONTRIBUTED:
  (1) WHOLLY BY THE GROUP POLICYHOLDER;
  (2) WHOLLY BY THE GROUP MEMBERS; OR
  (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
  (E)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
  (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
  (B) BE RETAINED BY THE GROUP POLICYHOLDER.
  (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT,  OR  RETROSPEC-
TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
SUBSECTION SHALL BE:
  (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
  (B)  PAID  OR  REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF  DISTRIBUTED  BY
THE  GROUP  POLICYHOLDER,  OR  ON  THE  DATE  OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
  (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND,  THE
INSURER  SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
  (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT  OR  REFUND,
THE  INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
  (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS  SUBSECTION,  IF  A
DIVIDEND  ACCRUES  UPON  TERMINATION  OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR  WHICH  WAS  PAID  OUT  OF
FUNDS  CONTRIBUTED  BY  GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY  THE  GROUP  POLICYHOLDER  TO  THE
GROUP  MEMBERS  INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES  INCURRED  BY  THE  GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
  (4)  FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY  OF  EXCESS
PREMIUMS  TO  THE  GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR  RETROSPECTIVE  PREMIUM
REFUNDS.  THE  TERM  "DIVIDEND"  DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION  WITH  THE  OPERATION  OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
ING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
  (F) THE INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE  GROUP  MEMBERS
OF THE SAME CLASS AND STATUS.
  (G)  EACH  POLICY  WRITTEN  PURSUANT TO THIS SECTION SHALL PROVIDE PER
OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER  IN  AN  AMOUNT  NOT
LESS  THAN  THAT REQUIRED BY OF SUBSECTION (C) OF SECTION THREE THOUSAND
FOUR HUNDRED FORTY-ONE OF THIS ARTICLE, AND  MAY  PROVIDE  COVERAGE  FOR
LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
  (H) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
MAILING  OR  DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER
INSURED UNDER THE  TRANSPORTATION  NETWORK  COMPANY  GROUP  POLICY.  THE

S. 4108--C                          7

INSURER  OR  THE  GROUP  POLICYHOLDER  SHALL ALSO BE RESPONSIBLE FOR THE
MAILING OR DELIVERY TO EACH GROUP MEMBER OF AN  AMENDED  CERTIFICATE  OF
INSURANCE  OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE
IN  LIMITS;  CHANGE  IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER  THE  TRANSPORTATION
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
  (2)  THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED  BY  REFERENCE  AND  A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
  (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE  INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
THE GROUP MEMBERS THAT, IF THE  MEMBER  HAS  OTHER  INSURANCE  COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
  (I)  A  GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME  MANNER
AS  AN  AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A  TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
  (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO  SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF  THIS  ARTICLE;  PROVIDED  THAT  THE
FOLLOWING  REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
  (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY  IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C)  OF  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT  WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
  (B)  WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF  THE  REASONS  SET  FORTH  IN
SUBPARAGRAPH  (B),  (C)  OR  (H)  OF  PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
  (2) (A) AN INSURER'S CANCELLATION OF A  GROUP  POLICY,  INCLUDING  ALL
CERTIFICATES,  SHALL  NOT  BECOME  AFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION  TO  THE  GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
  (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY  THE  GROUP  MEMBER  SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP  POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
  (II)  WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE  COVERAGE,  THE  GROUP  POLICY  HOLDER
SHALL  MAIL  OR  DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND  THE  EFFECTIVE
DATE  OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.
  (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE  SHALL  NOT
BECOME  EFFECTIVE  UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S

S. 4108--C                          8

MAILING ADDRESS AND TO THE GROUP POLICYHOLDER  AT  THE  MAILING  ADDRESS
SHOWN IN THE GROUP POLICY.
  (3)  (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A  REASON  UPON  THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
  (B)  THE  GROUP  POLICYHOLDER  SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S  CANCELLATION  OF
THE  GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE  TO  THE
GROUP  MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
  (4) A GROUP MEMBER MAY CANCEL OPTIONAL COVERAGE UPON PROVIDING  NOTICE
TO  THE  INSURER  AND  THE  GROUP POLICYHOLDER. FOR THE PURPOSES OF THIS
PARAGRAPH, "OPTIONAL  COVERAGE"  MEANS  COVERAGE  OTHER  THAN  FINANCIAL
RESPONSIBILITY  REQUIREMENTS  DESCRIBED IN SUBPARAGRAPH (C) OF PARAGRAPH
THREE OF SUBSECTION (A) OF THIS SECTION THAT AN INDIVIDUAL GROUP  MEMBER
PURCHASES ON AN OPTIONAL BASIS.
  (5) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY  AND  ALL  CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR
POLICY PERIOD.
  (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM  BILLED  TO  THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
  (I)  THE  INSURER  MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
  (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE  EXPIRATION  DATE
SPECIFIED  IN  THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER-
SARY DATE OF THE POLICY.
  (6) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH  GROUP  MEMBER
ADVISING  THE  GROUP  MEMBER  OF  NONRENEWAL OF THE GROUP POLICY AND THE
EFFECTIVE DATE OF NONRENEWAL.  THE  GROUP  POLICYHOLDER  SHALL  MAIL  OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
  (7)  EVERY  NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION,  NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
  (8) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE  TO  A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE
GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR  COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
  (B)  A  GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION
TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR  COVERAGE  HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
  (9)  (A)  IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL,
OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR  A  CERTIFICATE,  WHETHER
INITIATED  BY  THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN
REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT  TO
THE  TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL
EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED  IN  THE  GROUP
POLICY  NOTWITHSTANDING  THE  CANCELLATION,  NONRENEWAL  OR  CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.
  (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH  THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.

S. 4108--C                          9

  (K)  ANY  MAILING  OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED
UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL  IF  CONSENT  TO  SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
  (L) FORMS AND RATES FOR ANY GROUP POLICY ISSUED OR ISSUED FOR DELIVERY
IN  THIS  STATE  PURSUANT TO THIS SECTION SHALL BE FILED WITH THE SUPER-
INTENDENT IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THIS CHAPTER.   THE
SUPERINTENDENT  SHALL  NOT  APPROVE  FOR  DELIVERY ANY POLICY UNDER THIS
SECTION FOR A VEHICLE WHICH IS LICENSED TO OPERATE BY A TAXI AND  LIMOU-
SINE COMMISSION, IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE.
  S 3. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
  (4)  IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A TRANSPORTATION
NETWORK COMPANY DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER  AS  SUCH
TERMS  ARE  DEFINED  IN  SUBSECTION  (B)  OF SECTION THREE THOUSAND FOUR
HUNDRED FORTY-ONE OF THIS CHAPTER.
  S 4. This act shall take effect immediately.

Co-Sponsors

S4108D (ACTIVE) - Details

Current Committee:: Assembly Insurance
Law Section:: Insurance Law
Laws Affected:: Add §§3441 & 3455, amd §5103, Ins L

S4108D (ACTIVE) - Summary

Relates to transportation network companies.

S4108D (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S4108D

 TITLE OF BILL :

An act to amend the insurance law, in relation to transportation
network companies

 PURPOSE :

To clarify insurance provisions and requirements relative to
transportation network companies.

 SUMMARY OF PROVISIONS :

Sections 1 and 2 of the bill amend the insurance law by adding two new
sections to authorize the issuance of automobile insurance policies to
transportation network companies and transportation network company
drivers on a group basis and to regulate the interaction of private
passenger automobile insurance policies with insurance policies
covering transportation network services.

Sections 3 amends the insurance law by adding as a permissible
exclusion from certain required coverages injuries that occur while
operating a personal vehicle as a transportation network company
driver.

Section 4 provides authority to local municipalities to implement
rules and regulations pertaining to transportation network companies,
including background check requirements.

Section 5 is the effective date.

 JUSTIFICATION :

Transportation Network Companies (TNCs) provide a digital platform
that matches consumers with a community of vetted local drivers
offering rides using their personal vehicles. Existing transportation
options alone can no longer fully accommodate growing populations, yet
80% of the seats in personal vehicles remain empty.  TNC platforms are
already filling those empty seats across the country by providing
additional transportation options to communities that need them most
and reducing the economic burden of car ownership.

The broader benefits of ridesharing are being realized in communities
where TNCs have been able to scale effectively. Ridesharing protects
consumer choice, responds to unmet market demands, supplies accessible
and affordable transportation options to underserved areas, provides
economic opportunities, reduces drunk driving, eases traffic
congestion, curbs air pollution and provides last mile solutions to
commuters seeking to utilize existing transit options.  TNCs are
continuing to evolve to maximize these benefits with innovative
options in the largest markets where they have been able to grow
within the framework of reasonable regulation.

This bill would establish requirements and protections similar to
those which have been adopted in other states relative to TNCs so as
to ensure adequate coverage for TNC activities and prevent the
subsidization of commercial TNC activities by personal auto insurance
policyholders. In New York, TNCs are currently operating only in New
York City pursuant to Taxi and Limousine Commission regulations. This
bill would address the INC insurance issues which are hindering TNCs
from operating upstate and would help to allow this innovative new
transportation option to be made available upstate. To support
innovation and allow these new TNC businesses to grow while at the
same time protecting consumers, it is vitally important that the
vehicles used in TNC services are properly insured and the public is
protected. This bill would establish clear guidelines relative to TNC
related insurance issues so that everyone knows where they stand
regarding insurance coverage for transportation network services.
This bill would balance the need to ensure that necessary safety
standards are met by existing and emerging TNCs while enabling growth
and innovation to fully realize the benefits that consumers are
demanding.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become law.

S4108D (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4108--D
    Cal. No. 1283

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 27, 2015
                               ___________

Introduced  by  Sens.  SEWARD,  BOYLE, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance  --  committee  discharged,  bill  amended,  ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- committee discharged, bill amended, ordered reprinted  as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Insurance in accordance with Senate Rule  6,  sec.  8  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading,  amended  and  ordered  reprinted,
  retaining its place in the order of third reading

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:

  Section 1. The insurance law is amended by adding a new  section  3441
to read as follows:
  S  3441.  TRANSPORTATION  NETWORK COMPANIES.   (A) NOTWITHSTANDING ANY
OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
TION NETWORK COMPANIES.
  (B) FOR PURPOSES OF  THIS  SECTION  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY:
  (1)  "PERSONAL VEHICLE" MEANS A MOTOR VEHICLE USED BY A TRANSPORTATION
NETWORK COMPANY DRIVER AND IS OWNED  OR  LEASED  BY  THE  TRANSPORTATION
NETWORK COMPANY DRIVER.
  (2)  "DIGITAL NETWORK" MEANS ANY ONLINE-ENABLED APPLICATION, SOFTWARE,
WEBSITE OR SYSTEM OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPA-
NY THAT ENABLES THE PREARRANGEMENT OF RIDES WITH TRANSPORTATION  NETWORK
COMPANY DRIVERS.
  (3) "TRANSPORTATION NETWORK COMPANY" MEANS A CORPORATION, PARTNERSHIP,
SOLE  PROPRIETORSHIP,  OR  OTHER  ENTITY THAT IS OPERATING IN THIS STATE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD09417-11-6

S. 4108--D                          2

THAT USES A DIGITAL NETWORK TO CONNECT  TRANSPORTATION  NETWORK  COMPANY
RIDERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE PREARRANGED
RIDES.
  (4) "TRANSPORTATION NETWORK COMPANY DRIVER" OR "DRIVER" MEANS AN INDI-
VIDUAL WHO:
  (A) RECEIVES CONNECTIONS TO POTENTIAL RIDERS AND RELATED SERVICES FROM
A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE
TRANSPORTATION NETWORK COMPANY; AND
  (B)  USES A PERSONAL VEHICLE TO OFFER OR PROVIDE A PREARRANGED RIDE TO
RIDERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A  TRANS-
PORTATION  NETWORK  COMPANY  IN  RETURN FOR COMPENSATION OR PAYMENT OF A
FEE.
  (5) "TRANSPORTATION NETWORK COMPANY RIDER" OR "RIDER" MEANS  AN  INDI-
VIDUAL  OR  PERSONS  WHO  USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION  NETWORK  DRIVER  WHO  PROVIDES
PREARRANGED  RIDES TO THE RIDER IN THE DRIVER'S PERSONAL VEHICLE BETWEEN
POINTS CHOSEN BY THE RIDER.
  (6) "PREARRANGED RIDE" MEANS THE  PROVISION  OF  TRANSPORTATION  BY  A
DRIVER TO A RIDER, BEGINNING WHEN A DRIVER ACCEPTS A RIDE REQUESTED BY A
RIDER  THROUGH  A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK
COMPANY, CONTINUING WHILE THE DRIVER TRANSPORTS A REQUESTING RIDER,  AND
ENDING WHEN THE LAST REQUESTING RIDER DEPARTS FROM THE PERSONAL VEHICLE.
  (7)  "GROUP  POLICY"  MEANS  AN  INSURANCE  POLICY  ISSUED PURSUANT TO
SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS ARTICLE.
  (C) A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANSPORTATION  NETWORK
COMPANY  ON  THE  DRIVER'S BEHALF THROUGH A GROUP POLICY, SHALL MAINTAIN
PRIMARY AUTOMOBILE INSURANCE THAT:
  (1) RECOGNIZES THAT THE DRIVER IS  A  TRANSPORTATION  NETWORK  COMPANY
DRIVER  OR  OTHERWISE USES A VEHICLE TO TRANSPORT PASSENGERS FOR COMPEN-
SATION AND COVERS THE DRIVER:
  (A) WHILE THE DRIVER IS LOGGED ON TO THE TRANSPORTATION NETWORK COMPA-
NY'S DIGITAL NETWORK; OR
  (B) WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE.
  (2) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY  WHILE
A  PARTICIPATING  TRANSPORTATION  NETWORK COMPANY DRIVER IS LOGGED ON TO
THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS AVAILABLE TO
RECEIVE TRANSPORTATION REQUESTS BUT IS  NOT  ENGAGED  IN  A  PREARRANGED
RIDE:
  (A)  PRIMARY  AUTOMOBILE LIABILITY INSURANCE IN THE AMOUNT OF AT LEAST
FIFTY THOUSAND DOLLARS FOR DEATH  AND  BODILY  INJURY  PER  PERSON,  ONE
HUNDRED  THOUSAND  DOLLARS FOR DEATH AND BODILY INJURY PER INCIDENT, AND
TWENTY-FIVE THOUSAND DOLLARS FOR PROPERTY DAMAGE AND COVERAGE IN  SATIS-
FACTION  OF  THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET  FORTH IN
SECTION THREE THOUSAND FOUR HUNDRED  TWENTY  OF  THIS  ARTICLE,  ARTICLE
FIFTY-ONE OF THIS CHAPTER AND REGULATIONS PROMULGATED THEREUNDER.
  (B)  THE  COVERAGE  REQUIREMENTS OF THIS PARAGRAPH MAY BE SATISFIED BY
ANY OF THE FOLLOWING:
  (I) AUTOMOBILE INSURANCE  MAINTAINED  BY  THE  TRANSPORTATION  NETWORK
COMPANY DRIVER; OR
  (II)  AUTOMOBILE  INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSE (I) OR (II) OF THIS SUBPARAGRAPH.
  (3) THE FOLLOWING AUTOMOBILE INSURANCE REQUIREMENTS SHALL APPLY  WHILE
A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  IS ENGAGED IN A PREARRANGED
RIDE:

S. 4108--D                          3

  (A) PRIMARY AUTOMOBILE LIABILITY INSURANCE THAT PROVIDES AT LEAST  ONE
MILLION  DOLLARS FOR DEATH, BODILY INJURY AND PROPERTY DAMAGE AND COVER-
AGE IN SATISFACTION OF THE  FINANCIAL  RESPONSIBILITY  REQUIREMENTS  SET
FORTH  IN  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE  FIFTY-ONE  OF  THIS  CHAPTER AND REGULATIONS PROMULGATED THERE-
UNDER.
  (B) THE COVERAGE REQUIREMENTS OF THIS PARAGRAPH MAY  BE  SATISFIED  BY
ANY OF THE FOLLOWING:
  (I)  AUTOMOBILE  INSURANCE  MAINTAINED  BY  THE TRANSPORTATION NETWORK
COMPANY DRIVER; OR
  (II) AUTOMOBILE INSURANCE PROVIDED THROUGH A GROUP  POLICY  MAINTAINED
BY THE TRANSPORTATION NETWORK COMPANY; OR
  (III) ANY COMBINATION OF CLAUSES (I) AND (II) OF THIS SUBPARAGRAPH.
  (4)  A  TRANSPORTATION  NETWORK  COMPANY  SHALL,  UPON ENTERING INTO A
CONTRACTUAL AGREEMENT WITH  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER,
PROVIDE  NOTICE  TO  THE  TRANSPORTATION NETWORK COMPANY DRIVER THAT THE
DRIVER MAY NEED ADDITIONAL INSURANCE COVERAGE  INCLUDING  MOTOR  VEHICLE
PHYSICAL   DAMAGE   COVERAGE  AS  DESCRIBED  IN  PARAGRAPH  NINETEEN  OF
SUBSECTION (A) OF SECTION ONE THOUSAND  ONE  HUNDRED  THIRTEEN  OF  THIS
CHAPTER  IF THE DRIVER'S PERSONAL VEHICLE IS SUBJECT TO A LEASE OR LOAN.
A TRANSPORTATION NETWORK COMPANY SHALL ALSO  POST  THIS  NOTICE  ON  ITS
WEBSITE IN A PROMINENT PLACE.
  (5)  IF  INSURANCE MAINTAINED BY A DRIVER IN PARAGRAPH TWO OR THREE OF
THIS SUBSECTION HAS LAPSED OR DOES NOT PROVIDE  THE  REQUIRED  COVERAGE,
INSURANCE  MAINTAINED  BY A TRANSPORTATION NETWORK COMPANY SHALL PROVIDE
THE COVERAGE REQUIRED BY THIS SUBSECTION BEGINNING WITH THE FIRST DOLLAR
OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
  (6) COVERAGE UNDER AN AUTOMOBILE INSURANCE POLICY  MAINTAINED  BY  THE
TRANSPORTATION  NETWORK  COMPANY  SHALL  NOT  BE DEPENDENT ON A PERSONAL
AUTOMOBILE INSURER FIRST DENYING A CLAIM NOR SHALL A PERSONAL AUTOMOBILE
INSURANCE POLICY BE REQUIRED TO FIRST DENY A CLAIM.
  (7) INSURANCE REQUIRED BY THIS SUBSECTION MAY BE PLACED WITH AN INSUR-
ER AUTHORIZED OR ELIGIBLE TO WRITE INSURANCE IN THIS STATE AND SHALL  BE
ELIGIBLE  FOR  PLACEMENT  BY  AN EXCESS LINE BROKER LICENSED PURSUANT TO
ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (8) INSURANCE SATISFYING THE REQUIREMENTS OF THIS SUBSECTION SHALL  BE
DEEMED TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
SUBDIVISION  FOUR  OF  SECTION  THREE  HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
ARTICLE FIFTY-ONE OF THIS CHAPTER, AND  REGULATIONS  PROMULGATED  THERE-
UNDER,  AND  SUCH  OTHER REQUIREMENTS THAT MAY APPLY FOR THE PURPOSES OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
  (9) A TRANSPORTATION NETWORK  COMPANY  DRIVER  SHALL  CARRY  PROOF  OF
COVERAGE SATISFYING PARAGRAPHS TWO AND THREE OF THIS SUBSECTION WITH HIM
OR  HER  AT  ALL  TIMES DURING HIS OR HER USE OF A VEHICLE IN CONNECTION
WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK. IN THE EVENT OF
AN ACCIDENT, A TRANSPORTATION NETWORK COMPANY DRIVER SHALL PROVIDE  THIS
INSURANCE COVERAGE INFORMATION TO THE DIRECTLY INTERESTED PARTIES, AUTO-
MOBILE  INSURERS  AND  INVESTIGATING POLICE OFFICERS, UPON REQUEST. UPON
SUCH  REQUEST,  A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  SHALL  ALSO
DISCLOSE TO DIRECTLY INTERESTED PARTIES, AUTOMOBILE INSURERS, AND INVES-
TIGATING  POLICE OFFICERS, WHETHER HE OR SHE WAS LOGGED ON TO THE TRANS-
PORTATION NETWORK COMPANY'S DIGITAL NETWORK OR ON A PREARRANGED RIDE  AT
THE TIME OF AN ACCIDENT.

S. 4108--D                          4

  (D)  THE  TRANSPORTATION  NETWORK COMPANY SHALL DISCLOSE IN WRITING TO
TRANSPORTATION NETWORK COMPANY DRIVERS THE  FOLLOWING  BEFORE  THEY  ARE
ALLOWED TO ACCEPT A REQUEST FOR A PREARRANGED RIDE ON THE TRANSPORTATION
NETWORK COMPANY'S DIGITAL NETWORK:
  (1)  THE  INSURANCE  COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE
LIMITS FOR  EACH  COVERAGE,  THAT  THE  TRANSPORTATION  NETWORK  COMPANY
PROVIDES WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER USES A PERSONAL
VEHICLE  IN  CONNECTION  WITH A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK; AND
  (2) THAT THE TRANSPORTATION NETWORK COMPANY  DRIVER'S  OWN  AUTOMOBILE
INSURANCE  POLICY  MIGHT  NOT  PROVIDE  ANY COVERAGE WHILE THE DRIVER IS
LOGGED ON TO THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK AND IS
AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN  A  PREAR-
RANGED RIDE, DEPENDING ON ITS TERMS.
  (E)  (1)  INSURERS  THAT  WRITE AUTOMOBILE INSURANCE IN THIS STATE MAY
EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER  THE  POLICY  ISSUED  TO  AN
OWNER  OR  OPERATOR  OF  A  PERSONAL VEHICLE FOR ANY LOSS OR INJURY THAT
OCCURS WHILE A DRIVER IS LOGGED ON TO A TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  PREARRANGED  RIDE.  THIS
RIGHT  TO  EXCLUDE ALL COVERAGE MAY APPLY TO ANY COVERAGE INCLUDED IN AN
AUTOMOBILE INSURANCE POLICY INCLUDING, BUT NOT LIMITED TO:
  (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
  (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THIS CHAPTER;
  (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND
  (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
  (2) SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT  UNDER
THE  LAW  TO  THE  CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT A PERSONAL AUTOMOBILE INSURANCE POLICY PROVIDE COVERAGE  WHILE  THE
DRIVER  IS  LOGGED  ON  TO  THE TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK, WHILE THE DRIVER IS ENGAGED IN A PREARRANGED RIDE OR WHILE  THE
DRIVER  OTHERWISE  USES  A  VEHICLE  TO TRANSPORT PASSENGERS FOR COMPEN-
SATION.
  (3) NOTHING SHALL BE DEEMED TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
COVERAGE  FOR THE TRANSPORTATION NETWORK COMPANY DRIVER'S VEHICLE, IF IT
SO CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
  (4)  AUTOMOBILE  INSURERS  THAT  EXCLUDE  THE  COVERAGE  DESCRIBED  IN
SUBSECTION (C) OF THIS SECTION SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY
ANY  CLAIM  EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO INVALIDATE OR LIMIT AN  EXCLUSION  CONTAINED  IN  A  POLICY
INCLUDING  ANY  POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO
THE ENACTMENT OF THIS SECTION THAT EXCLUDES COVERAGE FOR  VEHICLES  USED
TO  CARRY  PERSONS OR PROPERTY FOR A CHARGE OR AVAILABLE FOR HIRE BY THE
PUBLIC.
  (5) AN AUTOMOBILE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM  AGAINST
A  DRIVER  THAT  IS EXCLUDED UNDER THE TERMS OF ITS POLICY, SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER  INSURERS  THAT  PROVIDE  AUTOMOBILE
INSURANCE  TO  THE  SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF SUBSECTION (C) OF THIS SECTION AT THE TIME OF LOSS.
  (6) IN A CLAIMS COVERAGE INVESTIGATION, TRANSPORTATION NETWORK  COMPA-
NIES AND ANY INSURER POTENTIALLY PROVIDING COVERAGE UNDER SUBSECTION (C)
OF THIS SECTION SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED,
FACILITATE  THE  EXCHANGE OF RELEVANT INFORMATION WITH DIRECTLY INVOLVED
PARTIES AND ANY INSURER OF THE TRANSPORTATION NETWORK COMPANY DRIVER  IF
APPLICABLE,  INCLUDING  THE  PRECISE TIMES THAT A TRANSPORTATION NETWORK

S. 4108--D                          5

COMPANY DRIVER LOGGED ON AND OFF OF THE TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING  AND  IN
THE  TWELVE  HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE
TO  ONE  ANOTHER  A  CLEAR  DESCRIPTION  OF THE COVERAGE, EXCLUSIONS AND
LIMITS  PROVIDED  UNDER  ANY  AUTOMOBILE  INSURANCE   MAINTAINED   UNDER
SUBSECTION (C) OF THIS SECTION.
  S 2. The insurance law is amended by adding a new section 3455 to read
as follows:
  S  3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES.  (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
  (1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE MEANING SET  FORTH
IN  SUBSECTION  (B)  OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF
THIS ARTICLE.
  (2) "CERTIFICATE" OR "CERTIFICATE  OF  INSURANCE"  MEANS  ANY  POLICY,
CONTRACT  OR OTHER EVIDENCE OF INSURANCE, OR RIDER OR ENDORSEMENT THERE-
TO, ISSUED TO A GROUP MEMBER  UNDER  A  TRANSPORTATION  NETWORK  COMPANY
GROUP POLICY.
  (3)  "TRANSPORTATION  NETWORK  COMPANY GROUP POLICY" OR "GROUP POLICY"
MEANS GROUP POLICY, INCLUDING CERTIFICATE ISSUED TO THE  GROUP  MEMBERS,
WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPANY AND THE
POLICY  PROVIDES  INSURANCE TO THE TRANSPORTATION NETWORK COMPANY AND TO
GROUP MEMBERS:
  (A) IN ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTION (C)  OF  SECTION
THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE;
  (B)  OF  THE  TYPE  DESCRIBED  IN PARAGRAPHS THIRTEEN, FOURTEEN AND/OR
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
OF THIS CHAPTER; AND
  (C)  IN  SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED  TWENTY  OF  THIS  ARTICLE,
SUBDIVISION  FOUR  OF  SECTION  THREE  HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS  PROMUL-
GATED THEREUNDER.
  (4)  "GROUP MEMBER" MEANS A "TRANSPORTATION NETWORK COMPANY DRIVER" AS
DEFINED IN SUBSECTION (B) OF SECTION THREE THOUSAND FOUR HUNDRED  FORTY-
ONE OF THIS ARTICLE.
  (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
  (6)  "PERSONAL VEHICLE" SHALL HAVE THE MEANING SET FORTH IN SUBSECTION
(B) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS ARTICLE.
  (B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A  TRANS-
PORTATION  NETWORK  COMPANY  GROUP  POLICY  TO  A TRANSPORTATION NETWORK
COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH  THE  PROVISIONS
OF THIS SECTION.
  (C)(1)  A  TRANSPORTATION  NETWORK  COMPANY GROUP POLICY SHALL PROVIDE
COVERAGE FOR A PERSONAL VEHICLE IN ACCORDANCE WITH THE  REQUIREMENTS  OF
SUBSECTION  (C) OF SECTION THREE THOUSAND FOUR HUNDRED FORTY-ONE OF THIS
ARTICLE.
  (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
  (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT TO SUBSECTION (C) OF SECTION THREE THOUSAND FOUR  HUNDRED  FORTY-ONE
OF THIS ARTICLE;
  (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY  INJURY  PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
  (C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE  PURSUANT  TO  SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND

S. 4108--D                          6

  (D)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
OF THIS CHAPTER.
  (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
SUBSECTION MAY BE PROVIDED IN ONE GROUP  POLICY  OR  IN  SEPARATE  GROUP
POLICIES.
  (4)  A  TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF-
ICATES, SHALL BE ISSUED BY AN INSURER AUTHORIZED OR  ELIGIBLE  TO  WRITE
INSURANCE IN THIS STATE AND SHALL BE ELIGIBLE FOR PLACEMENT BY AN EXCESS
LINE BROKER LICENSED PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
  (D)  THE  PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP  POLICYHOLDER  FROM  THE
FUNDS CONTRIBUTED:
  (1) WHOLLY BY THE GROUP POLICYHOLDER;
  (2) WHOLLY BY THE GROUP MEMBERS; OR
  (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
  (E)  (1)  ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
  (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
  (B) BE RETAINED BY THE GROUP POLICYHOLDER.
  (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT,  OR  RETROSPEC-
TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
SUBSECTION SHALL BE:
  (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
  (B)  PAID  OR  REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF  DISTRIBUTED  BY
THE  GROUP  POLICYHOLDER,  OR  ON  THE  DATE  OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
  (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND,  THE
INSURER  SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
  (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT  OR  REFUND,
THE  INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
  (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS  SUBSECTION,  IF  A
DIVIDEND  ACCRUES  UPON  TERMINATION  OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR  WHICH  WAS  PAID  OUT  OF
FUNDS  CONTRIBUTED  BY  GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY  THE  GROUP  POLICYHOLDER  TO  THE
GROUP  MEMBERS  INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES  INCURRED  BY  THE  GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
  (4)  FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY  OF  EXCESS
PREMIUMS  TO  THE  GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR  RETROSPECTIVE  PREMIUM
REFUNDS.  THE  TERM  "DIVIDEND"  DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION  WITH  THE  OPERATION  OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-

S. 4108--D                          7

ING  ADMINISTRATIVE  REIMBURSEMENTS,  FEES  FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
  (F)  THE  INSURER MUST TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS
OF THE SAME CLASS AND STATUS.
  (G) EACH POLICY WRITTEN PURSUANT TO THIS  SECTION  SHALL  PROVIDE  PER
OCCURRENCE  LIMITS  OF  COVERAGE  FOR EACH GROUP MEMBER IN AN AMOUNT NOT
LESS THAN THAT REQUIRED BY OF SUBSECTION (C) OF SECTION  THREE  THOUSAND
FOUR  HUNDRED  FORTY-ONE  OF  THIS ARTICLE, AND MAY PROVIDE COVERAGE FOR
LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
  (H) (1) THE INSURER OR THE GROUP POLICYHOLDER SHALL BE RESPONSIBLE FOR
MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH  GROUP  MEMBER
INSURED  UNDER  THE  TRANSPORTATION  NETWORK  COMPANY  GROUP POLICY. THE
INSURER OR THE GROUP POLICYHOLDER SHALL  ALSO  BE  RESPONSIBLE  FOR  THE
MAILING  OR  DELIVERY  TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF
INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A  CHANGE
IN  LIMITS;  CHANGE  IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMI-
NATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER  THE  TRANSPORTATION
NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
  (2)  THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED  BY  REFERENCE  AND  A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
  (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE  INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
THE GROUP MEMBERS THAT, IF THE  MEMBER  HAS  OTHER  INSURANCE  COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
  (I)  A  GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME  MANNER
AS  AN  AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A  TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
  (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO  SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF  THIS  ARTICLE;  PROVIDED  THAT  THE
FOLLOWING  REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
  (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY  IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C)  OF  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT  WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
  (B)  WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF  THE  REASONS  SET  FORTH  IN
SUBPARAGRAPH  (B),  (C)  OR  (H)  OF  PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
  (2) (A) AN INSURER'S CANCELLATION OF A  GROUP  POLICY,  INCLUDING  ALL
CERTIFICATES,  SHALL  NOT  BECOME  AFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION  TO  THE  GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
  (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY  THE  GROUP  MEMBER  SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL

S. 4108--D                          8

ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP  POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS.
  (II)  WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE  COVERAGE,  THE  GROUP  POLICY  HOLDER
SHALL  MAIL  OR  DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND  THE  EFFECTIVE
DATE  OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.
  (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE  SHALL  NOT
BECOME  EFFECTIVE  UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
MAILING ADDRESS AND TO THE GROUP POLICYHOLDER  AT  THE  MAILING  ADDRESS
SHOWN IN THE GROUP POLICY.
  (3)  (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR A  REASON  UPON  THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
  (B)  THE  GROUP  POLICYHOLDER  SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S  CANCELLATION  OF
THE  GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE  TO  THE
GROUP  MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
  (4) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED  FOR  A  ONE-YEAR
POLICY PERIOD.
  (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
  (I) THE INSURER MAILS OR DELIVERS TO THE GROUP  POLICYHOLDER  AND  ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
  (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT  NOT  MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE  NEXT  ANNIVER-
SARY DATE OF THE POLICY.
  (5) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER  SHALL  MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
ADVISING THE GROUP MEMBER OF NONRENEWAL OF  THE  GROUP  POLICY  AND  THE
EFFECTIVE  DATE  OF  NONRENEWAL.  THE  GROUP  POLICYHOLDER SHALL MAIL OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
  (6) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR  CONDITIONAL  RENEWAL
SHALL  SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
  (7) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY  EITHER  THE
GROUP  POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
  (B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER  THIS  SUBSECTION
TO  GIVE  NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
  (8) (A) IF, PRIOR TO THE EFFECTIVE DATE OF  CANCELLATION,  NONRENEWAL,
OR  CONDITIONAL  RENEWAL  OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP  MEMBER  IN
REGARD  TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE  UNTIL
EXPIRATION  OF  THE  APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP

S. 4108--D                          9

POLICY  NOTWITHSTANDING  THE  CANCELLATION,  NONRENEWAL  OR  CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.
  (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF  CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
  (K) ANY MAILING OR DELIVERY TO A GROUP MEMBER  REQUIRED  OR  PERMITTED
UNDER  THIS  SECTION  MAY  BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
  (L) THE SUPERINTENDENT SHALL NOT APPROVE FOR DELIVERY ANY POLICY UNDER
THIS SECTION FOR A VEHICLE WHICH IS LICENSED TO OPERATE BY  A  TAXI  AND
LIMOUSINE  COMMISSION,  IN  ANY CITY WITH A POPULATION OF ONE MILLION OR
MORE.
  S 3. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
  (4) IS INJURED WHILE OPERATING A PERSONAL VEHICLE AS A  TRANSPORTATION
NETWORK  COMPANY  DRIVER OR TRANSPORTATION NETWORK COMPANY RIDER AS SUCH
TERMS ARE DEFINED IN SUBSECTION  (B)  OF  SECTION  THREE  THOUSAND  FOUR
HUNDRED FORTY-ONE OF THIS CHAPTER.
  S  4. The municipal officers and boards in cities, towns, villages and
counties of this state may adopt  ordinances  regulating  transportation
network  companies including but not limited to comprehensive background
checks of prospective drivers and on all other matters  other  than  the
insurance  requirements  set forth in section 3441 of the insurance law.
Nothing in this  section  shall  authorize  any  transportation  network
company  or  transportation  network driver to provide passenger pick-up
service in a city with a population of one million or more except as may
be authorized by such city.
  S 5. This act shall take effect immediately.

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The New York State Senate

senate Bill S4108D

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Jun 17, 2016 - floor Vote

Floor Vote: Jun 17, 2016

Jun 1, 2016 - Insurance committee Vote

Committee Vote: Jun 1, 2016

Jun 8, 2015 - Insurance committee Vote

Committee Vote: Jun 8, 2015

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senate Bill S4108D

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Sponsored By

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Jun 17, 2016 - floor Vote

Floor Vote: Jun 17, 2016

Jun 1, 2016 - Insurance committee Vote

Committee Vote: Jun 1, 2016

Jun 8, 2015 - Insurance committee Vote

Committee Vote: Jun 8, 2015

Bill Amendments

Co-Sponsors

S4108 - Details

S4108 - Summary

S4108 - Sponsor Memo

S4108 - Bill Text download pdf

Co-Sponsors

S4108A - Details

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S4108D (ACTIVE) - Details

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