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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
insurance coverage requirements; transportation companies
Purpose
Modifies the minimum amount of primary uninsured motorist coverage that must be maintained by a transportation network driver or company, or both, and by a taxi, livery vehicle or limousine driver or company.
Background
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 and while the
driver is performing transportation network services, the driver or the
company, or both, must maintain the following insurance coverage:
1) primary commercial motor vehicle liability insurance that covers that
transportation network company driver's provision of transportation network
services in a minimum amount of $250,000 per incident; and 2) commercial
uninsured motorist coverage in a minimum amount of $250,000 per incident (A.R.S.
§ 28-4038).
The motor vehicle liability insurance needed for a taxi, livery vehicle or limousine is different depending on whether the taxi, livery vehicle or limousine is available to provide passenger transportation or the taxi, livery vehicle or limousine has accepted a ride request. After a taxi, livery vehicle or limousine driver has accepted a ride request through any communication and during the time the taxi, livery vehicle or limousine driver is providing passenger transportation, the taxi, livery vehicle or limousine driver or company must maintain the following insurance coverage: 1) primary commercial motor vehicle liability insurance in a minimum amount of $250,000 per incident; and 2) commercial uninsured motorist coverage in a minimum amount of $250,000 per incident (A.R.S. § 28-4039).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Modifies the minimum insurance coverage a transportation network company, its driver or both must maintain for primary commercial uninsured motorist coverage from $250,000 per incident to $25,000 per person and $50,000 per incident.
2. Modifies the minimum insurance coverage a taxi, vehicle or limousine driver or company must maintain during the time in which passenger transportation is provided for primary commercial uninsured motorist coverage from $250,000 per incident to $25,000 per person and $50,000 per incident.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 8, 2024
MG/cs