The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Cheryl Horne.
DIGEST
SB 172 Engrossed 2015 Regular Session Morrish
Proposed law creates The Transportation Network Company Motor Vehicle Responsibility Law
which shall apply to transportation network companies and their participating drivers.
Proposed law defines "bodily injury" to include but not be limited to claims for wrongful death, loss
of services, loss of consortium, bystander injury, mental anguish, and emotional distress suffered by
others.
Proposed law defines "digital network" as any online-enabled application, software, website, or
system offered or utilized by a transportation network company that enables the prearrangement of
rides with transportation network company drivers.
Proposed law defines "transportation network company" as a person, whether natural or juridical,
that uses a digital network to connect transportation network company riders or persons providing
items for transport 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 drivers that connect to its digital network, except where
agreed to by written contract.
Proposed law defines "transportation network company driver" or "driver" as a person who receives
connections to potential passengers or providers of items to be transported and related services from
a transportation network company in exchange for payment of a fee to the transportation network
company and uses a personal vehicle to offer or provide a prearranged ride to persons upon
connection through a digital network controlled by a transportation network company in return for
compensation or payment of a fee.
Proposed law defines "personal vehicle" as a vehicle that is used by a transportation network
company driver and is owned, leased, or otherwise authorized for use by the transportation network
company driver. A personal vehicle is not a vehicle subject to certain provisions of present law or
engaged solely in interstate commerce.
Proposed law defines "pre-trip acceptance period" as any period of time during which a participating
driver is logged into a transportation network company's digital network and available to receive
requests for transportation network company services and is not otherwise engaged in a prearranged
ride.
Proposed law defines "prearranged ride" as the provision of transportation by a driver to a rider or
a person providing items to be transported, beginning when a driver accepts a ride requested by a
person through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider or items to be transported, and ending when the last
requesting rider departs or the item to be transported is removed from the personal vehicle. A
prearranged ride does not include transportation provided using a vehicle subject to proposed law.
Proposed law defines "transportation network company rider" or "rider" as a person who uses 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. "Rider" also means a person who uses a transportation network company’s digital
network to connect with a transportation network driver who provides prearranged rides for items
provided by the rider and to be transported in the driver's personal vehicle between points chosen
by the rider.
Proposed law provides for the disclosure by the transportation network company to its drivers of the
insurance that it maintains and that the drivers' personal automobile insurance may not provide
coverage while logged onto the transportation network company's network.
Proposed law prohibits a transportation network company from either requiring or including a hold
harmless or indemnification clause in the terms of any agreement with a driver. Provides that any
such clause shall be an absolute nullity.
Proposed law provides that a transportation network company driver or a transportation network
company on the driver’s behalf, shall maintain primary automobile insurance that meets the
following requirements:
Automobile insurance during the pre-trip acceptance period shall:
(1) Be in the amount of not less than $50,000 for death and bodily injury per person, not less than
$100,000 for death and bodily injury per incident, and not less than $25,000 for property damage.
(2) Include uninsured and underinsured motorist coverage to the extent required by present law.
Automobile insurance during a prearranged ride shall:
(1) Be in the amount of not less than $1 million for death, bodily injury, and property damage.
(2) Include uninsured and underinsured motorist coverage in the amount of not less than $1 million.
Proposed law provides that insurers that write automobile insurance in this state may exclude any
or 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 during the pre-trip acceptance period or while a driver is engaged in a prearranged ride. This
right to exclude coverage shall apply to any or all coverage in an automobile insurance policy
including, but not limited to:
(1) Liability coverage for bodily injury. (2) Liability coverage for property damage.
(3) Uninsured and underinsured motorist coverage.
(4) Medical payments coverage.
(5) Comprehensive physical damage coverage.
(6) Collision physical damage coverage.
The exclusions permitted in proposed law shall apply notwithstanding any requirement under the
Motor Vehicle Safety Responsibility Law, R.S. 32:851 et seq. or other laws. Nothing in proposed
law 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 during the pre-trip acceptance
period, while the driver is engaged in a prearranged ride, or while the driver otherwise uses a vehicle
to transport passengers or items for compensation.
Proposed law provides that automobile insurers that exclude the coverage described in present law
shall have no duty to defend or indemnify any claim expressly excluded thereunder and that nothing
in proposed law 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 effective date of proposed law that
excludes coverage for vehicles used to carry persons or property for a charge or available for hire by
the public.
Proposed law provides that 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 requirements of
present law at the time of loss.
Proposed law provides that if a transportation network company’s insurer makes a payment for a
claim covered under comprehensive coverage or collision coverage, the transportation network
company shall cause its insurer to issue the payment directly to the repair facility or jointly to the
owner of the vehicle and the primary holder of any security interest, privilege, or lien on the covered
vehicle. Provides that no fine shall result for a violation of this proposed law.
Proposed law provides that the transportation network company shall file proof of its compliance
with insurance requirements with any parish or municipality that requires or requests such a filing.
Proposed law provides that in a claims coverage investigation, a transportation network company
and its insurer shall cooperate with insurers that are involved in the claims coverage investigation
and shall respond within 14 days of a request for information from the parties or another insurer.
Proposed law provides that a driver of a transportation network company shall carry proof of
transportation network company insurance and shall provide it to any party involved in an accident,
a police officer, or both, upon request. A transportation network company that obtains insurance shall provide its drivers with proof of insurance.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 45:201.1 through 201.14)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original bill
1. Adds definitions.
2. Provides for agreements with drivers and mandatory disclosures.
3. Creates automobile insurance requirements during the pre-trip acceptance period and
the prearranged ride period.
4. Allows insurers to exclude any or all coverage while a driver is logged on to a
transportation network company's digital network.
5. Requires cooperation by a transportation network company and any insurer during
a claims investigation.