A BILL TO BE ENTITLED
AN ACT to require financial responsibility for operators of digitally dispatched prearranged transportation services.
The General Assembly of North Carolina enacts:
SECTION 1.  The title of Article 10 of Chapter 20 of the General Statutes reads as rewritten:
"Article 10.
"Financial Responsibility of Taxicab Operators and Providers of Digitally Dispatched Prearranged Transportation Services.
SECTION 2.  Article 10 of Chapter 20 of the General Statutes is amended by adding a new section to read:
"§ 20‑280.1  Requirements for digitally dispatched prearranged transportation services.
(a)	The following definitions apply to this section:
(1)	Participating driver or driver. – Any person who uses a vehicle in connection with a transportation network company's online‑enabled application or platform to connect with passengers.
(2)	Transportation network company. – An organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in the State that provides digital dispatching services for prearranged transportation services for compensation using an online‑enabled application or platform to connect passengers with drivers using a personal vehicle.
(3)	Transportation network company insurance. – An insurance policy that specifically covers liabilities arising from a driver's use of a vehicle in connection with a transportation network company's online‑enabled application or platform.
(b)	A transportation network company shall disclose in writing to participating drivers, as part of its agreement with those drivers, the following:
(1)	The insurance coverage and limits of liability that the transportation network company provides while the driver uses a vehicle in connection with a transportation network company's online‑enabled application or platform.
(2)	That the driver's personal automobile insurance policy may not provide any required or optional coverages when the driver uses a vehicle in connection with a transportation network company's online‑enabled application or platform.
(c)	A transportation network company and any participating driver shall maintain transportation network company insurance as provided in this subsection.
(1)	The following requirements shall apply to transportation network company insurance from the moment a participating driver accepts a ride request on the transportation network company's online‑enabled application or platform until the driver completes the transaction on the online‑enabled application or platform or until the ride is complete, whichever is later:
a.	Transportation network company insurance shall be primary and in the amount of one million dollars ($1,000,000) for death, bodily injury, and property damage. Transportation network company insurance coverage provided under this subdivision shall also provide for uninsured motorist coverage in the amount of one million dollars ($1,000,000).
b.	Transportation network company insurance coverage provided under this subdivision may provide for the following:
1.	Underinsured motorist coverage in an amount not to exceed one million dollars ($1,000,000).
2.	Accident and health insurance, as defined by G.S. 58‑7‑15.
3.	Collision insurance or other comprehensive physical damage coverage if the participating driver carries any of those coverages on their personal auto policy, unless that insurer issuing the personal auto policy is providing transportation network company insurance to the driver.
c.	The requirements for the coverage required by this subdivision may be satisfied by any of the following:
1.	Transportation network company insurance maintained by a participating driver.
2.	Transportation network company insurance maintained by a transportation network company.
3.	Any combination of sub‑sub‑subdivisions 1. and 2. of this sub‑subdivision.
d.	A transportation network company may meet its obligations under this subdivision through a policy obtained by a participating driver pursuant to sub‑sub‑subdivisions 1. or 3. of sub‑subdivision c. of this subdivision only if the transportation network company verifies that the policy is maintained by the driver and is specifically written to cover the driver's use of a vehicle in connection with a transportation network company's online‑enabled application or platform.
e.	The insurer providing the transportation network company insurance under this subdivision shall have the duty to defend and indemnify the insured.
(2)	The following requirements shall apply to transportation network company insurance from the moment a participating driver logs on to the transportation network company's online‑enabled application or platform until the driver accepts a request to transport a passenger, and from the moment the driver completes the transaction on the online‑enabled application or platform or the ride is complete, whichever is later, until the driver either accepts another ride request on the online‑enabled application or platform or logs off the online‑enabled application or platform:
a.	Transportation network company insurance shall be primary and in the amount of at least thirty thousand dollars ($30,000) for death and bodily injury per person, sixty thousand dollars ($60,000) for death and bodily injury per accident, and twenty‑five thousand dollars ($25,000) for property damage. Transportation network company insurance coverage provided under this subdivision shall also provide for uninsured motorist coverage equal to the highest limits in the policy for death or bodily injury, but not to exceed one million dollars ($1,000,000) per person or accident.
b.	Transportation network company insurance coverage provided under this subdivision may provide for the following:
1.	Underinsured motorist coverage in an amount not to exceed one million dollars ($1,000,000).
2.	Accident and health insurance, as defined by G.S. 58‑7‑15.
3.	Collision insurance or other comprehensive physical damage coverage if the participating driver carries any of those coverages on their personal auto policy, unless that insurer issuing the personal auto policy is providing transportation network company insurance to the driver.
c.	The requirements for the coverage required by this subdivision may be satisfied by any of the following:
1.	Transportation network company insurance maintained by a participating driver.
2.	Transportation network company insurance maintained by a transportation network company that provides coverage in the event a participating driver's insurance policy under sub‑sub‑subdivision 1. of this sub‑subdivision has ceased to exist or has been canceled, or the participating driver does not otherwise maintain transportation network company insurance pursuant to this subdivision.
3.	Any combination of sub‑sub‑subdivisions 1. and 2. of this sub‑subdivision.
d.	A transportation network company may meet its obligations under this subdivision through a policy obtained by a participating driver pursuant to sub‑sub‑subdivisions 1. or 3. of sub‑subdivision c. of this subdivision only if the transportation network company verifies that the policy is maintained by the driver and is specifically written to cover the driver's use of a vehicle in connection with a transportation network company's online‑enabled application or platform.
e.	The insurer providing the transportation network company insurance under this subdivision shall have the duty to defend and indemnify the insured.
(3)	Coverage under a transportation network company insurance policy shall not be dependent on a personal automobile insurance policy first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.
(4)	In every instance where transportation network company insurance maintained by a participating driver to fulfill the insurance obligations of this section has lapsed or ceased to exist, the transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim.
(d)	Nothing in this section shall be construed to require a private passenger automobile insurance policy to provide primary or excess coverage during the period of time from the moment a participating driver in a transportation network company logs on to the transportation network company's online‑enabled application or platform until the driver logs off the online‑enabled application or platform or the passenger exits the vehicle, whichever is later.
(e)	During the period of time from the moment a participating driver in a transportation network company logs on to the transportation network company's online‑enabled application or platform until the driver logs off the online‑enabled application or platform or the passenger exits the vehicle, whichever is later, all of the following shall apply:
(1)	The participating driver's or the vehicle owner's personal automobile insurance policy shall not provide any coverage to the participating driver, vehicle owner, or any third party, unless the policy expressly provides for that coverage during the period of time to which this subdivision is applicable, with or without a separate charge, or the policy contains an amendment or endorsement to provide that coverage, for which a separately stated premium is charged.
(2)	The participating driver's or the vehicle owner's personal automobile insurance policy shall not have the duty to defend or indemnify for the driver's activities in connection with the transportation network company, unless the policy expressly provides otherwise for the period of time to which this subsection is applicable, with or without a separate charge, or the policy contains an amendment or endorsement to provide that coverage, for which a separately stated premium is charged.
(f)	Notwithstanding any other law, a personal automobile insurer may, at its discretion, offer an automobile liability insurance policy, or an amendment or endorsement to an existing policy that covers a private passenger vehicle, station wagon type vehicle, sport utility vehicle, or similar type of vehicle with a passenger capacity of eight persons or less, including the driver, while used in connection with a transportation network company's online‑enabled application or platform only if the policy expressly provides for the coverage during the time period specified in subsection (e) of this section, with or without a separate charge, or the policy contains an amendment or an endorsement to provide that coverage, for which a separately stated premium may be charged.
(g)	In a claims coverage investigation, a transportation network company or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information, including the provision of dates and times at which an accident occurred that involved a participating driver and the precise times that the participating driver logged on and off the transportation network company's online‑enabled application or platform.
(h)	A participating driver of a transportation network company shall carry proof of transportation network company insurance coverage with him or her at all times during his or her use of a vehicle in connection with a transportation network company's online‑enabled application or platform. In the event of an accident, a participating driver shall provide this insurance coverage information to any other party involved in the accident, and to a law enforcement officer, upon request.
(i)	Notwithstanding any other provision of this Chapter or Chapter 58 of the General Statutes, or any other law affecting how one or more policies of insurance applicable to an occurrence may be categorized as primary or excess, this section determines the obligations under insurance policies issued to transportation network companies and, if applicable, drivers using a vehicle in connection with a transportation network company's online‑enabled application or platform."
SECTION 3.  This act becomes effective July 1, 2015.