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:
    1    Section  1.  The insurance law is amended by adding a new section 3441
    2  to read as follows:
    3    S 3441. TRANSPORTATION  NETWORK  COMPANIES.  (A)  NOTWITHSTANDING  ANY
    4  OTHER PROVISION OF THIS CHAPTER, THIS SECTION SHALL APPLY TO TRANSPORTA-
    5  TION NETWORK COMPANIES.
    6    (B)  FOR  PURPOSES  OF  THIS  SECTION  THE FOLLOWING DEFINITIONS SHALL
    7  APPLY:
    8    (1) "TRANSPORTATION NETWORK COMPANY" MEANS AN ORGANIZATION, INCLUDING,
    9  BUT NOT LIMITED TO, A CORPORATION, LIMITED LIABILITY  COMPANY,  PARTNER-
   10  SHIP, SOLE PROPRIETOR, OR ANY OTHER ENTITY, OPERATING IN THIS STATE THAT
   11  PROVIDES  PREARRANGED  TRANSPORTATION SERVICES FOR COMPENSATION USING AN
   12  ONLINE-ENABLED APPLICATION OR PLATFORM TO CONNECT PASSENGERS WITH  DRIV-
   13  ERS USING A PERSONAL VEHICLE.
   14    (2)  "PARTICIPATING  DRIVER"  OR  "DRIVER" MEANS ANY PERSON WHO USES A
   15  VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-EN-
   16  ABLED APPLICATION OR PLATFORM TO CONNECT WITH PASSENGERS.
   17    (3) "TRANSPORTATION NETWORK COMPANY INSURANCE" IS AN INSURANCE  POLICY
   18  THAT  SPECIFICALLY COVERS A DRIVER'S USE OF A VEHICLE IN CONNECTION WITH
   19  A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLICATION  OR  PLAT-
   20  FORM.
   21    (C)  A  TRANSPORTATION  NETWORK  COMPANY  SHALL DISCLOSE IN WRITING TO
   22  PARTICIPATING DRIVERS, AS PART OF ITS AGREEMENT WITH THOSE DRIVERS,  THE
   23  INSURANCE  COVERAGE  AND  LIMITS  OF  LIABILITY  THAT THE TRANSPORTATION
   24  NETWORK COMPANY PROVIDES WHILE THE DRIVER USES A VEHICLE  IN  CONNECTION
   25  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
    1  PLATFORM, AND SHALL ADVISE A PARTICIPATING DRIVER IN  WRITING  THAT  THE
    2  DRIVER'S  PERSONAL  AUTOMOBILE  INSURANCE  POLICY  MAY  NOT  PROVIDE ANY
    3  REQUIRED OR OPTIONAL COVERAGE BECAUSE  THE  DRIVER  USES  A  VEHICLE  IN
    4  CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLI-
    5  CATION OR PLATFORM.
    6    (D)  A  TRANSPORTATION  NETWORK  COMPANY  AND ANY PARTICIPATING DRIVER
    7  SHALL MAINTAIN TRANSPORTATION NETWORK COMPANY INSURANCE AS  PROVIDED  IN
    8  THIS SECTION.
    9    (E)  THE  FOLLOWING REQUIREMENTS SHALL APPLY TO TRANSPORTATION NETWORK
   10  COMPANY INSURANCE FROM THE MOMENT A PARTICIPATING DRIVER ACCEPTS A  RIDE
   11  REQUEST  ON THE TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLICA-
   12  TION OR PLATFORM UNTIL THE  DRIVER  COMPLETES  THE  TRANSACTION  ON  THE
   13  ONLINE-ENABLED  APPLICATION  OR  PLATFORM OR UNTIL THE RIDE IS COMPLETE,
   14  WHICHEVER IS LATER.
   15    (1) TRANSPORTATION NETWORK COMPANY  INSURANCE  SHALL  PROVIDE  PRIMARY
   16  LIABILITY COVERAGE IN THE AMOUNT OF ONE MILLION DOLLARS FOR DEATH, BODI-
   17  LY INJURY, AND PROPERTY DAMAGE.
   18    (2)  TRANSPORTATION  NETWORK COMPANY INSURANCE COVERAGE PROVIDED UNDER
   19  THIS SUBDIVISION SHALL ALSO PROVIDE:
   20    (A) COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY  REQUIRE-
   21  MENTS  SET  FORTH  IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS
   22  CHAPTER AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND  REGULATIONS  PROMUL-
   23  GATED THEREUNDER; AND
   24    (B)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
   25  NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
   26  OF THIS CHAPTER IF THE PARTICIPATING DRIVER CARRIES SUCH COVERAGE ON HIS
   27  OR HER PERSONAL AUTO POLICY UNLESS THAT INSURER IS PROVIDING TRANSPORTA-
   28  TION NETWORK COMPANY INSURANCE TO THE DRIVER.
   29    (3)  THE REQUIREMENTS FOR THE COVERAGE REQUIRED BY THIS SUBSECTION MAY
   30  BE SATISFIED BY ANY OF THE FOLLOWING:
   31    (A) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY  A  PARTIC-
   32  IPATING DRIVER;
   33    (B) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY A TRANSPOR-
   34  TATION NETWORK COMPANY; OR
   35    (C) ANY COMBINATION OF SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH.
   36    (D)  A  TRANSPORTATION  NETWORK COMPANY MAY MEET ITS OBLIGATIONS UNDER
   37  THIS SECTION THROUGH A POLICY OBTAINED BY A PARTICIPATING DRIVER  PURSU-
   38  ANT TO SUBPARAGRAPH (A) OR (C) OF THIS PARAGRAPH ONLY IF THE TRANSPORTA-
   39  TION NETWORK COMPANY VERIFIES THAT THE POLICY IS MAINTAINED BY THE DRIV-
   40  ER AND IS SPECIFICALLY WRITTEN TO COVER THE DRIVER'S USE OF A VEHICLE IN
   41  CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLI-
   42  CATION  OR  PLATFORM,  AND THE TRANSPORTATION NETWORK COMPANY ALSO MAIN-
   43  TAINS INSURANCE THAT PROVIDES COVERAGE  IN  THE  EVENT  A  PARTICIPATING
   44  DRIVER'S  INSURANCE  POLICY  UNDER SUBPARAGRAPH (A) OR (C) OF THIS PARA-
   45  GRAPH HAS CEASED TO EXIST OR HAS BEEN  CANCELED,  OR  THE  PARTICIPATING
   46  DRIVER DOES NOT OTHERWISE MAINTAIN TRANSPORTATION NETWORK COMPANY INSUR-
   47  ANCE PURSUANT TO THIS SECTION.
   48    (4)  THE  INSURER  PROVIDING  TRANSPORTATION NETWORK COMPANY INSURANCE
   49  UNDER THIS SUBSECTION SHALL HAVE THE DUTY TO DEFEND  AND  INDEMNIFY  THE
   50  INSURED.
   51    (F)  THE  FOLLOWING REQUIREMENTS SHALL APPLY TO TRANSPORTATION NETWORK
   52  COMPANY INSURANCE FROM THE MOMENT A PARTICIPATING DRIVER LOGS ON TO  THE
   53  TRANSPORTATION  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM
   54  UNTIL THE DRIVER ACCEPTS A REQUEST TO TRANSPORT A  PASSENGER,  AND  FROM
   55  THE  MOMENT  THE  DRIVER COMPLETES THE TRANSACTION ON THE ONLINE-ENABLED
   56  APPLICATION OR PLATFORM OR THE RIDE IS  COMPLETE,  WHICHEVER  IS  LATER,
       S. 4108                             3
    1  UNTIL  THE DRIVER EITHER ACCEPTS ANOTHER RIDE REQUEST ON THE ONLINE-ENA-
    2  BLED APPLICATION OR PLATFORM OR LOGS OFF THE ONLINE-ENABLED  APPLICATION
    3  OR PLATFORM:
    4    (1) TRANSPORTATION NETWORK COMPANY INSURANCE SHALL PROVIDE COVERAGE IN
    5  SATISFACTION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN
    6  SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
    7  TRAFFIC  LAW, SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE
    8  AND ARTICLE FIFTY-ONE OF THIS CHAPTER, AND REGULATIONS PROMULGATED THER-
    9  EUNDER. TRANSPORTATION NETWORK  COMPANY  INSURANCE  SHALL  ALSO  PROVIDE
   10  MOTOR  VEHICLE  PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH NINE-
   11  TEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN  OF
   12  THIS CHAPTER IF THE PARTICIPATING DRIVER CARRIES SUCH COVERAGE ON HIS OR
   13  HER PERSONAL AUTO POLICY UNLESS THAT INSURER IS PROVIDING TRANSPORTATION
   14  NETWORK COMPANY INSURANCE TO THE DRIVER.
   15    (2)  THE REQUIREMENTS FOR THE COVERAGE REQUIRED BY THIS SUBSECTION MAY
   16  BE SATISFIED BY ANY OF THE FOLLOWING:
   17    (A) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY  A  PARTIC-
   18  IPATING DRIVER;
   19    (B) TRANSPORTATION NETWORK COMPANY INSURANCE MAINTAINED BY A TRANSPOR-
   20  TATION NETWORK COMPANY; OR
   21    (C) ANY COMBINATION OF SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH.
   22    (D)  A  TRANSPORTATION  NETWORK COMPANY MAY MEET ITS OBLIGATIONS UNDER
   23  THIS SECTION THROUGH A POLICY OBTAINED BY A PARTICIPATING DRIVER  PURSU-
   24  ANT TO SUBPARAGRAPH (A) OR (C) OF THIS PARAGRAPH ONLY IF THE TRANSPORTA-
   25  TION NETWORK COMPANY VERIFIES THAT THE POLICY IS MAINTAINED BY THE DRIV-
   26  ER AND IS SPECIFICALLY WRITTEN TO COVER THE DRIVER'S USE OF A VEHICLE IN
   27  CONNECTION WITH A TRANSPORTATION NETWORK COMPANY'S ONLINE-ENABLED APPLI-
   28  CATION  OR  PLATFORM,  AND THE TRANSPORTATION NETWORK COMPANY ALSO MAIN-
   29  TAINS INSURANCE THAT PROVIDES COVERAGE  IN  THE  EVENT  A  PARTICIPATING
   30  DRIVER'S  INSURANCE  POLICY  UNDER SUBPARAGRAPH (A) OR (C) OF THIS PARA-
   31  GRAPH HAS CEASED TO EXIST OR HAS BEEN  CANCELED,  OR  THE  PARTICIPATING
   32  DRIVER DOES NOT OTHERWISE MAINTAIN TRANSPORTATION NETWORK COMPANY INSUR-
   33  ANCE PURSUANT TO THIS SECTION.
   34    (3)  THE  INSURER  PROVIDING  TRANSPORTATION NETWORK COMPANY INSURANCE
   35  UNDER THIS SUBSECTION SHALL HAVE THE DUTY TO DEFEND  AND  INDEMNIFY  THE
   36  INSURED.
   37    (G)  COVERAGE  UNDER A TRANSPORTATION NETWORK COMPANY INSURANCE POLICY
   38  SHALL NOT BE DEPENDENT ON A PERSONAL AUTOMOBILE INSURANCE  POLICY  FIRST
   39  DENYING  A  CLAIM  NOR  SHALL  A PERSONAL AUTOMOBILE INSURANCE POLICY BE
   40  REQUIRED TO FIRST DENY A CLAIM.
   41    (H) IN EVERY INSTANCE WHERE TRANSPORTATION NETWORK  COMPANY  INSURANCE
   42  MAINTAINED  BY  A  PARTICIPATING  DRIVER  TO FULFILL THE INSURANCE OBLI-
   43  GATIONS OF THIS SECTION HAS LAPSED OR CEASED TO EXIST,  THE  TRANSPORTA-
   44  TION NETWORK COMPANY SHALL PROVIDE THE COVERAGE REQUIRED BY THIS SECTION
   45  BEGINNING WITH THE FIRST DOLLAR OF A CLAIM.
   46    (I)  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO REQUIRE A PRIVATE
   47  PASSENGER AUTOMOBILE INSURANCE  POLICY  TO  PROVIDE  PRIMARY  OR  EXCESS
   48  COVERAGE DURING THE PERIOD OF TIME FROM THE MOMENT A PARTICIPATING DRIV-
   49  ER  IN  A  TRANSPORTATION  NETWORK COMPANY LOGS ON TO THE TRANSPORTATION
   50  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM UNTIL THE DRIV-
   51  ER LOGS OFF THE ONLINE-ENABLED APPLICATION OR PLATFORM OR THE  PASSENGER
   52  EXITS THE VEHICLE, WHICHEVER IS LATER.
   53    (J)  DURING  THE PERIOD OF TIME FROM THE MOMENT A PARTICIPATING DRIVER
   54  IN A TRANSPORTATION  NETWORK  COMPANY  LOGS  ON  TO  THE  TRANSPORTATION
   55  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM UNTIL THE DRIV-
       S. 4108                             4
    1  ER LOGS OFF THE ONLINE-ENABLED APPLICATION OR PLATFORM OR UNTIL THE RIDE
    2  IS COMPLETE, WHICHEVER IS LATER, ALL OF THE FOLLOWING SHALL APPLY:
    3    (1) THE PARTICIPATING DRIVER'S OR THE VEHICLE OWNER'S PERSONAL AUTOMO-
    4  BILE  INSURANCE POLICY SHALL NOT PROVIDE ANY COVERAGE TO THE PARTICIPAT-
    5  ING DRIVER, VEHICLE  OWNER,  OR  ANY  THIRD  PARTY,  UNLESS  THE  POLICY
    6  EXPRESSLY  PROVIDES FOR THAT COVERAGE DURING THE PERIOD OF TIME TO WHICH
    7  THIS SUBDIVISION IS APPLICABLE, WITH OR WITHOUT A  SEPARATE  CHARGE,  OR
    8  THE  POLICY  CONTAINS AN AMENDMENT OR ENDORSEMENT TO PROVIDE THAT COVER-
    9  AGE, FOR WHICH A SEPARATELY STATED PREMIUM IS CHARGED.
   10    (2) THE PARTICIPATING DRIVER'S OR THE VEHICLE OWNER'S PERSONAL AUTOMO-
   11  BILE INSURANCE POLICY SHALL NOT HAVE THE DUTY TO DEFEND OR INDEMNIFY FOR
   12  THE DRIVER'S ACTIVITIES IN CONNECTION WITH  THE  TRANSPORTATION  NETWORK
   13  COMPANY,  UNLESS  THE POLICY EXPRESSLY PROVIDES OTHERWISE FOR THE PERIOD
   14  OF TIME TO WHICH THIS SUBDIVISION IS APPLICABLE, WITH OR WITHOUT A SEPA-
   15  RATE CHARGE, OR THE POLICY  CONTAINS  AN  AMENDMENT  OR  ENDORSEMENT  TO
   16  PROVIDE THAT COVERAGE, FOR WHICH A SEPARATELY STATED PREMIUM IS CHARGED.
   17    (K)  NOTWITHSTANDING ANY OTHER LAW, A PERSONAL AUTOMOBILE INSURER MAY,
   18  AT ITS DISCRETION, OFFER AN AUTOMOBILE LIABILITY INSURANCE POLICY, OR AN
   19  AMENDMENT OR ENDORSEMENT TO AN EXISTING POLICY  THAT  COVERS  A  PRIVATE
   20  PASSENGER VEHICLE, STATION WAGON TYPE VEHICLE, SPORT UTILITY VEHICLE, OR
   21  SIMILAR  TYPE  OF  VEHICLE WITH A PASSENGER CAPACITY OF EIGHT PERSONS OR
   22  LESS, INCLUDING THE DRIVER, WHILE USED IN CONNECTION WITH A  TRANSPORTA-
   23  TION  NETWORK  COMPANY'S  ONLINE-ENABLED APPLICATION OR PLATFORM ONLY IF
   24  THE POLICY EXPRESSLY PROVIDES FOR THE COVERAGE DURING  THE  TIME  PERIOD
   25  SPECIFIED  IN SUBSECTION (B) OF THIS SECTION, WITH OR WITHOUT A SEPARATE
   26  CHARGE, OR THE POLICY CONTAINS AN AMENDMENT OR AN ENDORSEMENT TO PROVIDE
   27  THAT COVERAGE, FOR WHICH A SEPARATELY STATED PREMIUM MAY BE CHARGED.
   28    (L) IN A  CLAIMS  COVERAGE  INVESTIGATION,  A  TRANSPORTATION  NETWORK
   29  COMPANY  OR  ITS INSURER SHALL COOPERATE WITH INSURERS THAT ARE INVOLVED
   30  IN ANY CLAIMS COVERAGE  INVESTIGATION  TO  FACILITATE  THE  EXCHANGE  OF
   31  INFORMATION,  INCLUDING  THE  PROVISION  OF  DATES AND TIMES AT WHICH AN
   32  ACCIDENT OCCURRED THAT INVOLVED A PARTICIPATING DRIVER AND  THE  PRECISE
   33  TIMES THAT THE PARTICIPATING DRIVER LOGGED ON AND OFF THE TRANSPORTATION
   34  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM.
   35    (M)  A  PARTICIPATING DRIVER OF A TRANSPORTATION NETWORK COMPANY SHALL
   36  CARRY PROOF OF TRANSPORTATION NETWORK COMPANY  INSURANCE  COVERAGE  WITH
   37  HIM OR HER AT ALL TIMES DURING HIS OR HER USE OF A VEHICLE IN CONNECTION
   38  WITH  A  TRANSPORTATION  NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR
   39  PLATFORM. IN THE EVENT OF AN  ACCIDENT,  A  PARTICIPATING  DRIVER  SHALL
   40  PROVIDE  THIS INSURANCE COVERAGE INFORMATION TO ANY OTHER PARTY INVOLVED
   41  IN THE ACCIDENT, AND TO A POLICE OFFICER, UPON REQUEST.
   42    (N) NOTWITHSTANDING ANY OTHER LAW TO THE  CONTRARY  AFFECTING  WHETHER
   43  ONE  OR  MORE  POLICIES  OF  INSURANCE THAT MAY APPLY WITH RESPECT TO AN
   44  OCCURRENCE IS PRIMARY OR EXCESS, THIS SECTION DETERMINES THE OBLIGATIONS
   45  UNDER INSURANCE POLICIES ISSUED TO TRANSPORTATION NETWORK COMPANIES AND,
   46  IF APPLICABLE, DRIVERS USING A VEHICLE IN CONNECTION WITH A  TRANSPORTA-
   47  TION NETWORK COMPANY'S ONLINE-ENABLED APPLICATION OR PLATFORM.
   48    S 2. This act shall take effect on the one hundred twentieth day after
   49  it shall have become a law.