HF 1783

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 05/04/2015 03:46pm

A bill for an act
relating to auto insurance; providing transportation network financial
responsibility; amending Minnesota Statutes 2014, section 65B.64, subdivision
2; proposing coding for new law in Minnesota Statutes, chapter 65B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [65B.472] TRANSPORTATION NETWORK FINANCIAL
RESPONSIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) Unless a different meaning is expressly made
applicable, the terms defined in paragraphs (b) through (e) have the meanings given them
for the purposes of this chapter.
new text end

new text begin (b) A "transportation network company" means a person, firm, or corporation
operating in Minnesota that provides prearranged transportation services for compensation
primarily using an online-enabled application or platform to connect passengers with
drivers using a personal motor vehicle.
new text end

new text begin (c) A "participating driver" is a person who owns or uses a motor vehicle used
in connection with a transportation network company's online-enabled application or
platform to connect with passengers.
new text end

new text begin (d) A plan of "transportation network financial responsibility" is a plan of reparations
security and insurance that meets the requirements of subdivision 3.
new text end

new text begin (e) "Participating driver's motor vehicle insurance" means a plan of reparations
security and insurance that covers a motor vehicle when not used in connection with a
transportation network company's online-enabled application or platform, whether issued
on a personal or commercial basis.
new text end

new text begin Subd. 2. new text end

new text begin Disclosure to participating drivers. new text end

new text begin A transportation network company
shall disclose in writing to participating drivers, as part of its agreement with those drivers,
the plan of transportation network financial responsibility and the limits of liability that
the transportation network company provides while the participating driver uses a motor
vehicle in connection with a transportation network company's online-enabled application
or platform, and shall advise a participating driver in writing that the participating driver's
motor vehicle insurance may not provide required or optional coverage because of the
participating driver's use of a motor vehicle in connection with a transportation network
company's online-enabled application or platform.
new text end

new text begin Subd. 3. new text end

new text begin Maintenance of transportation network financial responsibility. new text end

new text begin (a)
A transportation network company and a participating driver shall, individually or in
combination, maintain a plan of transportation network financial responsibility, under
provisions approved by the commissioner, pursuant to the requirements of this subdivision.
new text end

new text begin (b) Transportation network financial responsibility shall provide the following
coverage during the time period starting 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:
new text end

new text begin (1) primary coverage insuring against loss resulting from liability imposed by law
for injury and property damage sustained by any person arising out of the ownership,
maintenance, operation, or use of the motor vehicle pursuant to the requirements of section
65B.49, subdivision 3, containing stated limits of liability, exclusive of interests and costs,
with respect to each motor vehicle for which coverage is thereby granted, of not less than
$1,000,000 because of bodily injury to one or more persons or injury to or destruction
of property of others in any one accident;
new text end

new text begin (2) security for the payment of basic economic loss benefits required by section
65B.44 pursuant to the priority requirements of section 65B.47. A transportation network
company and a participating driver, during the period set forth in this paragraph is deemed
to be in the business of transporting persons or property for purposes of section 65B.47,
subdivision 1. For purposes of section 65B.47, subdivision 6, the term driver includes a
participating driver and a transportation network company;
new text end

new text begin (3) separate uninsured motorist coverage and underinsured motorist coverage
pursuant to the requirements of section 65B.49, subdivisions 3a and 4a, providing, at a
minimum, limits of $1,000,000 because of injury to or the death of one or more persons
in any one accident;
new text end

new text begin (4) collision and comprehensive coverage if the participating driver maintains those
coverages as a part of the participating driver's motor vehicle insurance, and at the same
limits; and
new text end

new text begin (5) a duty to defend a participating driver, the transportation network company, and
any other insured set forth under the plan of transportation network financial responsibility.
new text end

new text begin (c) Transportation network financial responsibility required under this subdivision
may be satisfied by either a participating driver or transportation network company,
individually or in combination, pursuant to section 65B.48, subject to the additional
requirements of this section.
new text end

new text begin If satisfied by a participating driver, individually or in combination with the
transportation network company, the transportation network company must verify that the
plan of transportation network financial responsibility is maintained by the participating
driver and is specifically written to cover the participating driver's use of a motor vehicle
in connection with a transportation network company's online-enabled application or
platform pursuant to the requirements of this section.
new text end

new text begin (d) Transportation network financial responsibility provides the following coverage
during the time period starting 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:
new text end

new text begin (1) primary coverage insuring against loss resulting from liability imposed by law
for injury and property damage sustained by any person arising out of the ownership,
maintenance, operation, or use of the motor vehicle pursuant to the requirements of
section 65B.49, subdivision 3, containing stated limits of liability, exclusive of interest
and costs, with respect to each motor vehicle for which coverage is thereby granted, of
not less than $50,000 because of bodily injury to one person in any accident, $100,000
because of bodily injury to two or more persons in any accident, and $30,000 for injury
or destruction of property of others in any one accident;
new text end

new text begin (2) security for the payment of basic economic loss benefits required by section
65B.44 pursuant to the priority requirements of section 65B.47. A transportation network
company and a participating driver, during the period set forth in this paragraph are
deemed to be in the business of transporting persons or property for purposes of section
65B.47, subdivision 1. For purposes of section 65B.47, subdivision 6, the term driver
includes a participating driver and a transportation network company;
new text end

new text begin (3) separate uninsured motorist coverage and underinsured motorist coverage
pursuant to the requirements of section 65B.49, subdivisions 3a and 4a, providing, at a
minimum, limits of $50,000 because of injury to or the death of one person in any accident
and $100,000 because of injury to or the death of two or more persons in any accident;
new text end

new text begin (4) collision and comprehensive coverage if the participating driver maintains those
coverages as a part of the participating driver's motor vehicle insurance, and at the same
limits; and
new text end

new text begin (5) a duty to defend a participating driver, the transportation network company, and
any other insured set forth under the plan of transportation network financial responsibility.
new text end

new text begin (e) Transportation network financial responsibility required under this subdivision
may be satisfied by either a participating driver or transportation network company,
individually or in combination, pursuant to section 65B.48, subject to the additional
requirements of this subdivision. If satisfied by a participating driver, individually or
in combination with the transportation network company, the transportation network
company must verify that the plan of transportation network financial responsibility is
maintained by the participating driver and is specifically written to cover the participating
driver's use of a motor vehicle in connection with a transportation network company's
online-enabled application or platform pursuant to the requirements of this section.
new text end

new text begin (f) Transportation network financial responsibility must not be dependent upon or
require any other insurance to first deny a claim nor must a participating driver's motor
vehicle insurance be required to first deny a claim in order to trigger transportation
network financial responsibility coverage.
new text end

new text begin (g) In every instance where transportation network financial responsibility
maintained by a participating driver has been canceled, nonrenewed, lapsed, or is
otherwise not in force pursuant to the requirements of this section, the transportation
network company shall provide the transportation network financial responsibility
required by this section on a primary basis beginning with the first dollar of a claim.
new text end

new text begin (h) A plan of transportation network financial responsibility required by this section
can be purchased from an insurer authorized to write insurance in this state under section
60A.07, or from a surplus lines insurer authorized to write insurance under section 60A.07
or sections 60A.195 to 60A.2095.
new text end

new text begin Subd. 4. new text end

new text begin Participating driver's motor vehicle insurance. new text end

new text begin (a) This section does
not require a participating driver's motor vehicle insurance to provide primary or excess
coverage of any kind, including basic economic loss benefits, during the time period
starting 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
motor vehicle, whichever is later.
new text end

new text begin (b) During the period of time from the moment a participating driver of 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 until the passenger exits the motor vehicle, whichever is later,
all of the following apply:
new text end

new text begin (1) the participating driver's motor vehicle insurance must not provide any coverage
to the participating driver, motor vehicle owner, transportation network company, or any
third party, including basic economic loss benefits, unless that policy expressly provides
for transportation network financial responsibility coverage during the period of time to
which this subdivision is applicable, with or without a separate charge, or that policy
contains an amendment or endorsement expressly to provide transportation network
financial responsibility, for which a separately stated premium may be charged; and
new text end

new text begin (2) the participating driver's motor vehicle insurance does not have the duty to
defend the transportation network company or a participating driver for liabilities arising
by law in connection with the transportation network company, unless that policy
expressly provides that duty to defend for the period of time to which this subdivision
is applicable, with or without a separate charge, or that policy contains an amendment
or endorsement to expressly provide that duty to defend, for which a separately stated
premium may be charged.
new text end

new text begin (c) Notwithstanding any other law, an insurer providing motor vehicle insurance
may, in its discretion, offer transportation network financial responsibility coverage, or an
amendment or endorsement to an existing policy that covers a motor vehicle while used
in connection with a transportation network company's online-enabled application or
platform, but only if the policy expressly provides for the coverage during the time period
specified in this subdivision, 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.
new text end

new text begin Subd. 5. new text end

new text begin Cooperation. new text end

new text begin In a claims coverage investigation, a transportation network
company, participating driver and its insurer shall cooperate with other 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.
new text end

new text begin Subd. 6. new text end

new text begin Proof of insurance. new text end

new text begin A participating driver shall carry proof of
transportation network financial responsibility at all times during use of a motor 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 information
to any other party involved in the accident, and to a police officer, upon request.
new text end

new text begin Subd. 7. new text end

new text begin Exclusive. new text end

new text begin Notwithstanding any other law, this chapter determines
the obligations of financial responsibility for transportation network companies and,
if applicable, a participating driver's use of a motor vehicle in connection with a
transportation network company's online-enabled application or platform.
new text end

Sec. 2.

Minnesota Statutes 2014, section 65B.64, subdivision 2, is amended to read:

Subd. 2.

Indemnification and subrogation rights.

If a claim qualifies for
assignment under subdivision 1, the assigned claims bureau or any reparation obligor to
whom the claim is assigned shall have the right to seek indemnification from an uninsured
tortfeasor. Except as otherwise provided in section 340A.801, subdivision 4, the reparation
obligor to whom the claim is assigned shall further be subrogated to all of the rights of the
claimant against any person for economic loss benefits provided by the obligor to whom
the claim was assigned new text begin , including a transportation network company or participating
driver required to provide basic economic loss benefits pursuant to section 65B.472 new text end .