01-14 15:59 H.B. 220
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Transportation Network Company Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nelson T. Abbott
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LONG TITLE
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General Description:
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This bill enacts provisions relating to a transportation network company.
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Highlighted Provisions:
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This bill:
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▸ establishes a cause of action for an individual against a transportation network company
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when the transportation network company fails to maintain proper insurance and the
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individual is injured in a vehicle accident that the transportation network company
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arranges.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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13-51-108, as last amended by Laws of Utah 2016, Chapters 138, 359
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 13-51-108 is amended to read:
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13-51-108 . Insurance.
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(1) A transportation network company or a transportation network driver shall maintain
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insurance that covers, on a primary basis, a transportation network driver's use of a
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vehicle during a prearranged ride and that includes:
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(a) an acknowledgment that the transportation network driver is using the vehicle in
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connection with a transportation network company during a prearranged ride or that
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the transportation network driver is otherwise using the vehicle for a commercial
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purpose;
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(b) liability coverage for a minimum amount of $1,000,000 per occurrence;
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(c) personal injury protection to the extent required under Sections 31A-22-306 through H.B. 220 01-14 15:59
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31A-22-309;
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(d) uninsured motorist coverage where required by Section 31A-22-305; and
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(e) underinsured motorist coverage where required by Section 31A-22-305.3.
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(2) A transportation network company or a transportation network driver shall maintain
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insurance that covers, on a primary basis, a transportation network driver's use of a
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vehicle during a waiting period and that includes:
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(a) an acknowledgment that the transportation network driver is using the vehicle in
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connection with a transportation network company during a waiting period or that the
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transportation network driver is otherwise using the vehicle for a commercial purpose;
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(b) liability coverage in a minimum amount, per occurrence, of:
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(i) $50,000 to any one individual;
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(ii) $100,000 to all individuals; and
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(iii) $30,000 for property damage;
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(c) personal injury protection to the extent required under Sections 31A-22-306 through
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31A-22-309;
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(d) uninsured motorist coverage where required by Section 31A-22-305; and
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(e) underinsured motorist coverage where required by Section 31A-22-305.3.
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(3) A transportation network company and a transportation network driver may satisfy the
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requirements of Subsections (1) and (2) by:
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(a) the transportation network driver purchasing coverage that complies with
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Subsections (1) and (2);
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(b) the transportation network company purchasing, on the transportation network
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driver's behalf, coverage that complies with Subsections (1) and (2); or
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(c) a combination of Subsections (3)(a) and (b).
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(4) An insurer may offer to a transportation network driver a personal automobile liability
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insurance policy, or an amendment or endorsement to a personal automobile liability
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policy, that:
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(a) covers a private passenger motor vehicle while used to provide transportation
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network services; and
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(b) satisfies the coverage requirements described in Subsection (1) or (2).
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(5) Nothing in this section requires a personal automobile insurance policy to provide
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coverage while a driver is providing transportation network services.
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(6) If a transportation network company does not purchase a policy that complies with
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Subsections (1) and (2) on behalf of a transportation network driver, the transportation
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network company shall verify that the driver has purchased a policy that complies with
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Subsections (1) and (2).
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(7) An insurance policy that a transportation network company or a transportation network
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driver maintains under Subsection (1) or (2):
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(a) satisfies the security requirements of Section 41-12a-301; and
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(b) may be placed with:
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(i) an insurer that is certified under Section 31A-4-103; or
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(ii) a surplus lines insurer eligible under Section 31A-15-103.
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(8) An insurer that provides coverage for a transportation network driver explicitly for the
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transportation network driver's transportation network services under Subsection (1) or
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(2) shall have the duty to defend a liability claim arising from an occurrence while the
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transportation network driver is providing transportation network services.
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(9) If insurance a transportation network driver maintains under Subsection (1) or (2) lapses
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or ceases to exist, a transportation network company shall provide coverage complying
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with Subsection (1) or (2) beginning with the first dollar of a claim.
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(10)(a) An insurance policy that a transportation network company or transportation
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network driver maintains under Subsection (1) or (2) may not provide that coverage
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is dependent on a transportation network driver's personal automobile insurance
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policy first denying a claim.
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(b) Subsection (10)(a) does not apply to coverage a transportation network company
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provides under Subsection (9) in the event a transportation network driver's coverage
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under Subsection (1) or (2) lapses or ceases to exist.
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(11) A personal automobile insurer:
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(a) notwithstanding Section 31A-22-302, may offer a personal automobile liability
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policy that excludes coverage for a loss that arises from the use of the insured vehicle
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to provide transportation network services; and
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(b) does not have the duty to defend or indemnify a loss if an exclusion described in
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Subsection (11)(a) excludes coverage according to the policy's terms.
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(12) An individual has a right of action against the transportation network company for
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personal injury damages not fully compensated by motor vehicle liability coverage if:
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(a) the individual is injured in an accident while occupying a vehicle operated by a
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transportation network driver during a prearranged ride; and
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(b) the transportation network company and the transportation network driver did not
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maintain uninsured or underinsured motorist coverage at the time of the accident.
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Section 2. Effective Date.
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This bill takes effect on May 7, 2025.
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