84R4980 SCL-D
By: Smithee H.B. No. 1733
A BILL TO BE ENTITLED
AN ACT
relating to automobile liability insurance for drivers providing
transportation network services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 10, Insurance Code, is amended
by adding Chapter 1954 to read as follows:
CHAPTER 1954. TRANSPORTATION NETWORK SERVICES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1954.001. DEFINITIONS. In this chapter:
(1) "Participating driver" means an individual who
operates a motor vehicle that is owned, leased, or otherwise
authorized for use by the individual and provides transportation
network services.
(2) "Passenger" means an individual who receives
transportation network services.
(3) "Transportation network company" means an entity
operating in this state that provides prearranged transportation
network services for compensation through an online-enabled
application or platform that connects a passenger with a
participating driver.
(4) "Transportation network insurance" means an
automobile liability insurance policy that covers a participating
driver while the driver is providing transportation network
services.
(5) "Transportation network services" means
transportation of a passenger between points chosen by the
passenger and prearranged with a participating driver through the
use of a transportation network company's online-enabled
application or platform. Unless context otherwise requires, the
term includes services beginning at the time the driver logs on to
the transportation network company's online-enabled application or
platform and ending at the time the driver logs off of the
application or platform.
Sec. 1954.002. APPLICABILITY OF CHAPTER. This chapter
applies to automobile liability insurance policies in this state,
including policies issued by a Lloyd's plan, a reciprocal or
interinsurance exchange, and a county mutual insurance company.
Sec. 1954.003. REQUIRED AND PROHIBITED DISCLOSURES. A
transportation network company shall provide to a participating
driver a written disclosure, as part of the agreement between the
company and the driver, of the company's transportation network
insurance policy and the policy's limits of liability. The
disclosure must notify the driver that the driver's personal
automobile liability insurance policy does not provide coverage to
the driver while the driver is providing transportation network
services from the time the driver logs on to the company's
online-enabled application or platform until the time the driver
logs off of the application or platform.
SUBCHAPTER B. INSURANCE REQUIREMENTS
Sec. 1954.051. INSURANCE REQUIREMENTS IN GENERAL. A
transportation network company and a participating driver shall
maintain transportation network insurance as provided by this
chapter.
Sec. 1954.052. NETWORK INSURANCE PRIMARY. Transportation
network insurance is the primary insurance as to the participating
driver while the driver is providing transportation network
services.
Sec. 1954.053. REQUIRED POLICY PROVISIONS. (a) Except to
the extent of a conflict with this chapter, transportation network
insurance coverage must satisfy the requirements of Subchapter D,
Chapter 601, Transportation Code.
(b) Transportation network insurance must include uninsured
or underinsured motorist coverage under Subchapter C, Chapter 1952,
and personal injury protection coverage under Subchapter D, Chapter
1952.
(c) Unless a participating driver's personal motor vehicle
liability insurer is also providing transportation network
insurance for the driver, transportation network insurance must
contain collision physical damage coverage and comprehensive
physical damage coverage if the driver's personal automobile
liability insurance policy contains those coverages.
Sec. 1954.054. INSURANCE REQUIREMENTS: FROM RIDE
ACCEPTANCE TO COMPLETION. A transportation network company shall
maintain transportation network insurance that covers each
participating driver beginning at the time the driver accepts a
ride request on the company's online-enabled application or
platform and ending at the later of:
(1) the time the driver completes the transaction on
the application or platform; or
(2) the time the passenger is no longer occupying the
driver's vehicle.
Sec. 1954.055. INSURANCE REQUIREMENTS: BETWEEN RIDES. A
transportation network company, a participating driver, or a
combination of both shall maintain transportation network
insurance that covers each driver for the periods:
(1) beginning at the time a driver logs on to the
company's online-enabled application or platform and ending at the
time the driver accepts a ride request; and
(2) beginning at the later of the time the driver
completes a transaction on the company's online-enabled
application or platform or the time the passenger is no longer
occupying the driver's vehicle and ending at the later of the time
the driver accepts another ride request on the application or
platform or the time the driver logs off of the company's
application or platform.
Sec. 1954.056. TERMINATION OF COVERAGE. If a
transportation network insurance policy is maintained by a
participating driver and the coverage terminates for any reason,
the driver's transportation network company shall provide coverage
as required by this chapter beginning at the time the driver's
coverage terminates.
Sec. 1954.057. RELATION TO PERSONAL AUTOMOBILE LIABILITY
INSURANCE. (a) Coverage under a transportation network insurance
policy is not contingent on a participating driver's personal
automobile liability insurer initially denying a claim.
(b) This chapter does not require a personal automobile
liability insurance policy to cover a participating driver when the
driver provides transportation network services.
(c) Except as expressly provided by the policy or an
endorsement to the policy, a participating driver's or motor
vehicle owner's personal automobile liability insurance policy
does not provide liability insurance coverage or require the
insurer to defend or indemnify a driver or vehicle owner while the
vehicle is being used to provide transportation network services.
An insurer shall charge a separate premium for an endorsement
described by this section.
(d) An insurer may not offer a personal automobile liability
insurance policy or an endorsement to that policy that provides the
coverage described by Subsection (c) for a private passenger
vehicle or similar vehicle that has a capacity of greater than eight
persons.
Sec. 1954.058. ASSISTANCE IN CLAIM INVESTIGATION. In an
insurance claim investigation, a transportation network company
shall assist each insurer involved in the claim by providing
information, including the date and time at which an accident
occurred and the precise time at which a participating driver
logged on to or off of the company's online-enabled application or
platform.
SECTION 2. The change in law made by this Act applies only
to an insurance policy that is delivered, issued for delivery, or
renewed on or after January 1, 2016. A policy delivered, issued for
delivery, or renewed before January 1, 2016, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.