SB1272 - 562R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-4038, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4038. Transportation network services; financial responsibility requirements; survey

A. For a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and during the time in which the transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver, but is not in the act of providing transportation network services, the transportation network company driver or the transportation network company, or both, shall provide primary motor vehicle liability insurance coverage in the amount of $25,000 because of bodily injury to or death of one person in any one accident, subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident and $20,000 because of injury to or destruction of property of others in any one accident. Coverage shall be maintained through any of the following:

1. A private passenger motor vehicle policy maintained by the transportation network company driver that expressly provides liability coverage while the driver is logged in to the transportation network company's digital network or software application to be a driver.

2. A motor vehicle liability policy maintained by the transportation network company.

3. A commercial motor vehicle liability policy.

B. For a transportation network company that requires a transportation network company driver to accept rides that are booked and paid for exclusively through the transportation network company's digital network or software application and during the time in which the transportation network company driver is providing transportation network services, the transportation network company driver or the transportation network company, or both, shall maintain the following insurance coverages:

1. Primary commercial motor vehicle liability insurance that covers the transportation network company driver's provision of transportation network services in a minimum amount of $250,000 per incident, except that the minimum amount shall be $1,000,000 per incident when a passenger to whom the transportation NETWORK company driver is providing transportation network services is occupying the transportation network company vehicle.

2. Primary commercial uninsured motorist coverage in a minimum amount of $250,000 either of the following, whichever is greater:

(a) $25,000 per person and $75,000 per incident.

(b) The minimum liability limits for bodily INJURY or death prescribed in section 28-4009.

C. Unless an insurance policy expressly provides coverage or contains an amendment or endorsement that expressly provides coverage, the transportation network company driver's insurance policy and the motor vehicle owner's personal motor vehicle insurance policy shall not be required to provide coverage for the transportation network company vehicle, the transportation network company driver, the motor vehicle owner or any third party while a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services.

D. Notwithstanding subsection C of this section, an insurer may offer, for the period during which a transportation network company driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services, one of the following:

1. A motor vehicle liability insurance policy expressly providing such coverage.

2. An amendment or endorsement to an existing motor vehicle liability insurance policy specifically providing such coverage.

E. An insurance policy required by this section is deemed to satisfy the financial responsibility requirements for a motor vehicle insurance policy under this title.

F. A transportation network company driver shall carry proof of insurance in the transportation network company vehicle at all times while logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services. If an accident occurs involving a transportation network company vehicle, the transportation network company driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The transportation network company driver shall also notify the transportation network company of the accident.

G. In a claims coverage investigation, transportation network companies and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network or software application in the twenty-four-hour period immediately preceding the accident, and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy each party issued or maintained.

H. This section and section 28-4009 do not create an obligation for an insurer that issues coverage to which section 20-1631 applies to offer, provide or issue a motor vehicle liability insurance policy or an endorsement or amendment that includes coverage for any liability arising while a transportation network company driver is logged in to the transportation network company's digital network or software application to be a driver or is providing transportation network services.

I. An insurance policy required by this section may be placed with an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1 or a surplus lines insurer pursuant to title 20, chapter 2, article 5.

J. The department of insurance and financial institutions, as part of its annual survey of insurance companies, may request information from any property and casualty insurer authorized to write private passenger motor vehicle coverage in this state, including information regarding:

1. Whether the insurer offers for purchase a policy or an endorsement or amendment that covers transportation network company drivers while the driver is logged in to a transportation network company's digital network or software application to be a driver or is providing transportation network services.

2. The number of those policies, endorsements or amendments that have been purchased during the reporting period.

3. The number of those policies, endorsements or amendments that have been canceled during the reporting period. END_STATUTE

Sec. 2. Section 28-4039, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4039. Taxi, livery vehicle or limousine; financial responsibility

A. Motor vehicle liability insurance for a taxi, livery vehicle or limousine may be maintained as follows:

1. During the time in which the taxi, livery vehicle or limousine driver is available to provide passenger transportation, but has not accepted a ride request and is not in the act of providing passenger transportation, primary commercial motor vehicle liability insurance coverage in the amount of twenty-five thousand dollars $25,000 because of bodily injury to or death of any one person in any one accident, subject to the limit for one person, fifty thousand dollars $50,000 because of bodily injury to or death of two or more persons in any one accident and twenty thousand dollars $20,000 because of injury to or destruction of property of others in any one accident. This policy may be maintained by either the driver or the company.

2. After the taxi, livery vehicle or limousine driver has accepted a ride request through any communication and during the time in which the taxi, livery vehicle or limousine driver is providing passenger transportation, the taxi, livery vehicle or limousine driver or the taxi, livery vehicle or limousine company shall maintain the following insurance coverage:

(a) Primary commercial motor vehicle liability insurance in a minimum amount of two hundred fifty thousand dollars $250,000 per incident.

(b) Primary commercial uninsured motorist coverage in a minimum amount of two hundred fifty thousand dollars either of the following, whichever is greater:

(i) $25,000 per person and $75,000 per incident.

(ii) The minimum liability amounts for bodily injury or death prescribed in section 28-4009.

B. A taxi, livery vehicle or limousine driver shall carry proof of insurance in the vehicle at all times while providing transportation services. If an accident occurs involving a taxi, livery vehicle or limousine, the taxi, livery vehicle or limousine driver shall provide proof of insurance to the parties involved in the accident at the time of the accident. The taxi, livery vehicle or limousine driver shall also notify the taxi, livery vehicle or limousine company of the accident.

C. In a claims coverage investigation, a taxi, livery vehicle or limousine company and any insurer providing coverage as prescribed in this section shall fully cooperate in the exchange of information and shall disclose to each other a clear description of the coverage, exclusions and limits provided under any insurance policy that each party issued or maintained. END_STATUTE