2017 -- H 5485

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LC000509

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - TRANSPORTATION NETWORK

COMPANY SERVICES - INSURANCE

     Introduced By: Representatives Edwards, and Coughlin

     Date Introduced: February 15, 2017

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-14.2-8 and 39-14.2-14 of the General Laws in Chapter 39-14.2

entitled "Transportation Network Company Services" are hereby amended to read as follows:

     39-14.2-8. Solicitation and acceptance of TNC service requests.

     (a) TNC operators shall be strictly prohibited from soliciting or accepting so-called

"street hails."

     (b) TNC service drivers shall park their vehicles while in service no closer than two

hundred feet (200') from any marked taxi stand.

     39-14.2-14. Proof of financial responsibility of transportation network companies.

     (a) On or before ninety (90) days after the effective date of this chapter and thereafter,

TNC drivers, or a TNC on the driver's behalf, shall maintain primary automobile insurance that:

      (1) Recognizes that the driver is a transportation network company driver or otherwise

uses a vehicle to transport riders for compensation and covers the driver:.

      (i) While the driver is logged on to the transportation network company's digital

network; or

      (ii) While the driver is engaged in a prearranged ride or providing transportation network

company services.

      (b) The following automobile liability insurance requirements shall apply during the time

a TNC driver is logged into the TNC's digital network and available to receive requests for

transportation but is not providing prearranged rides:

      (1) Primary automobile liability insurance in the amount of at least fifty thousand dollars

($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for

death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property

damage.

      (2) Uninsured and underinsured motorist coverage to the extent required by § 27-7-2.1.

      (3) The coverage requirements of subsection (b) may be satisfied by any of the

following:

      (i) Automobile insurance maintained by the TNC driver; or

      (ii) Automobile insurance maintained by the TNC; or

      (iii) Any combination of subsections (b)(3)(i) and (b)(3)(ii).

      (c) The following automobile liability insurance requirements shall apply at all times to a

vehicle used by a TNC driver while a TNC driver is providing prearranged rides:

      (1) Primary automobile liability insurance that provides at least one million five hundred

thousand dollars ($1,500,000) for death, bodily injury, and property damage, and which shall be

commercial insurance;

      (2) Uninsured and underinsured motorist coverage to the extent required by § 27-7-2.1;

      (3) The coverage requirements of this subsection may be satisfied by any of the

following:

      (i) Automobile liability insurance maintained by the TNC driver; or

      (ii) Automobile liability insurance maintained by the TNC; or

      (iii) Any combination of subsections (c)(3)(i) and (c)(3)(ii).

      (d) If insurance maintained by a TNC driver to fulfill the insurance requirements of

subsections (b) and (c) of this section has lapsed or does not provide the required coverage,

insurance maintained by a TNC shall provide the coverage required by this section beginning

with the first dollar of a claim and such insurer shall have the duty to defend such claim.

      (e) 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.

      (f) Insurance required by this section may be placed with an insurer licensed under § 27-

2.4-1 et seq., or with a surplus lines insurer eligible under § 27-3-40 that has a credit rating of no

less than "A-" from A.M. Best, or "A" from Demotech, or similar rating from another rating

agency recognized by the Rhode Island insurance division.

      (g) Insurance required by this section shall be deemed to satisfy the financial

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responsibility requirement for a motor vehicle under § 31-47-2(13)(i)(A).

      (h) A TNC driver shall carry physical or electronic proof of coverage satisfying

subsections (b) and (c) with him or her at all times during his or her use of a vehicle in connection

with a TNC's digital network. In the event of an accident, a TNC driver shall provide this

insurance coverage information to the directly interested parties, automobile insurers, and

investigating police officers, upon request pursuant to § 31-47-2(15). Upon such request, a TNC

driver shall also disclose to directly interested parties, automobile insurers, and investigating

police officers, whether they were logged on to the TNC's digital network or providing

prearranged rides at the time of an accident.

     SECTION 2. This act shall take effect upon passage.

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LC000509

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - TRANSPORTATION NETWORK

COMPANY SERVICES - INSURANCE

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     This act would require TNC drivers to park no closer than two hundred feet (200') from

marked taxi stands and to maintain commercial automobile liability insurance twenty-four (24)

hours a day.

     This act would take effect upon passage.

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