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SF 1679

3rd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/26/2015 08:49am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2015
1st Engrossment Posted on 03/18/2015
2nd Engrossment Posted on 03/23/2015
3rd Engrossment Posted on 04/07/2015

Current Version - 3rd Engrossment

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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 (g) have the meanings given them
for the purposes of this chapter.
new text end

new text begin (b) A "digital network" means any online-enabled application, software, Web
site, or system offered or utilized by a transportation network company that enables the
prearrangement of rides with transportation network company drivers.
new text end

new text begin (c) A "personal vehicle" means a vehicle that is used by a transportation network
company driver in connection with providing a prearranged ride and is:
new text end

new text begin (1) owned, leased, or otherwise authorized for use by the transportation network
company driver; and
new text end

new text begin (2) not a taxicab, limousine, or for-hire vehicle.
new text end

new text begin (d) A "prearranged ride" means the provision of transportation by a driver to a rider,
beginning when a driver accepts a ride requested by a rider through a digital network
controlled by a transportation network company, continuing while the driver transports
a requesting rider, and ending when the last requesting rider departs from the personal
vehicle. A prearranged ride does not include transportation provided using a taxicab,
limousine, or other for-hire vehicle.
new text end

new text begin (e) A "transportation network company" means a corporation, partnership, sole
proprietorship, or other entity that is operating in Minnesota that uses a digital network to
connect transportation network company riders to transportation network company drivers
who provide prearranged rides.
new text end

new text begin (f) A "transportation network company driver" or "driver" means an individual who:
new text end

new text begin (1) receives connections to potential riders and related services from a transportation
network company in exchange for payment of a fee to the transportation network
company; and
new text end

new text begin (2) uses a personal vehicle to provide a prearranged ride to riders upon connection
through a digital network controlled by a transportation network company in return for
compensation or payment of a fee.
new text end

new text begin (g) A "transportation network company rider" or "rider" means an individual or
persons who use a transportation network company's digital network to connect with a
transportation network driver who provides prearranged rides to the rider in the driver's
new text end new text begin personal vehicle between points chosen by the rider.
new text end

new text begin Subd. 2. new text end

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

new text begin (a) A
transportation network company driver or transportation network company on the driver's
behalf shall maintain primary automobile insurance that recognizes that the driver is a
transportation network company driver or otherwise uses a vehicle to transport passengers
for compensation and covers the driver:
new text end

new text begin (1) while the driver is logged on to the transportation network company's digital
network; or
new text end

new text begin (2) while the driver is engaged in a prearranged ride.
new text end

new text begin (b) The following automobile insurance requirements apply while a participating
transportation network company driver is logged on to the transportation network
company's digital network and is available to receive transportation requests but is not
engaged in a prearranged ride:
new text end

new text begin (1) primary coverage insuring against loss resulting from liability imposed by law
for injury and property damage, including the requirements of section 65B.49, subdivision
3, in the amount of not less than $50,000 because of death or bodily injury to one person
in any accident, $100,000 because of death or bodily injury to two or more persons in any
accident, and $30,000 for 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 where required by
section 65B.44 pursuant to the priority requirements of section 65B.47. A transportation
network company and a transportation network company driver, during the period set forth
in this paragraph, are deemed to be in the business of transporting persons for purposes of
section 65B.47, subdivision 1, and the insurance required under this subdivision shall be
deemed to cover the vehicle during the period set forth in this paragraph;
new text end

new text begin (3) primary uninsured motorist coverage and primary underinsured motorist
coverage where required by section 65B.49, subdivisions 3a and 4a; and
new text end

new text begin (4) the coverage requirements of this subdivision may be satisfied by any of the
following:
new text end

new text begin (i) automobile insurance maintained by the transportation network company driver;
new text end

new text begin (ii) automobile insurance maintained by the transportation network company; or
new text end

new text begin (iii) any combination of items (i) and (ii).
new text end

new text begin (c) The following automobile insurance requirements apply while a transportation
network company driver is engaged in a prearranged ride:
new text end

new text begin (1) primary coverage insuring against loss resulting from liability imposed by law
for injury and property damage, including the requirements of section 65B.49, in the
amount of not less than $1,500,000 for death, injury, or destruction of property of others;
new text end

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

new text begin (3) primary uninsured motorist coverage and primary underinsured motorist
coverage where required by section 65B.49, subdivisions 3a and 4a; and
new text end

new text begin (4) the coverage requirements of this subdivision may be satisfied by any of the
following:
new text end

new text begin (i) automobile insurance maintained by the transportation network company driver;
new text end

new text begin (ii) automobile insurance maintained by the transportation network company; or
new text end

new text begin (iii) any combination of items (i) and (ii).
new text end

new text begin (d) If insurance maintained by the driver in paragraph (b) or (c) has lapsed or does
not provide the required coverage, insurance maintained by a transportation network
company shall provide the coverage required by this subdivision beginning with the first
dollar of a claim and have the duty to defend the claim.
new text end

new text begin (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.
new text end

new text begin (f) Insurance required by this subdivision must satisfy the requirements of chapter
60A.
new text end

new text begin (g) Insurance satisfying the requirements of this subdivision shall be deemed to
satisfy the financial responsibility requirements under the Minnesota No-Fault Automobile
Insurance Act, sections 65B.41 to 65B.71.
new text end

new text begin (h) A transportation network company driver shall carry proof of coverage
satisfying paragraphs (b) and (c) at all times during the driver's use of a vehicle in
connection with a transportation network company's digital network. In the event of an
accident, a transportation network company driver shall provide this insurance coverage
information to the directly interested parties, automobile insurers, and investigating police
officers upon request pursuant to section 65B.482, subdivision 1. Upon such request, a
transportation network company driver shall also disclose to directly interested parties,
automobile insurers, and investigating police officers whether the driver was logged on
to the transportation network company's digital network or on a prearranged ride at the
time of an accident.
new text end

new text begin Subd. 3. new text end

new text begin Disclosure to transportation network company drivers. new text end

new text begin The
transportation network company shall disclose in writing to transportation network
company drivers the following before they are allowed to accept a request for a
prearranged ride on the transportation network company's digital network:
new text end

new text begin (1) the insurance coverage, including the types of coverage and the limits for each
coverage, that the transportation network company provides while the transportation
network company driver uses a personal vehicle in connection with a transportation
network company's digital network;
new text end

new text begin (2) that the transportation network company driver's own automobile insurance
policy might not provide any coverage while the driver is logged on to the transportation
network company's digital network and is available to receive transportation requests or is
engaged in a prearranged ride depending on its terms; and
new text end

new text begin (3) that using a vehicle with a lien against the vehicle to provide transportation
network services may violate the transportation network driver's contract with the
lienholder.
new text end

new text begin Subd. 4. new text end

new text begin Automobile insurance provisions. new text end

new text begin (a) Insurers that write automobile
insurance in Minnesota may exclude any and all coverage afforded under the owner's
insurance policy for any loss or injury that occurs while a driver is logged on to a
transportation network company's digital network or while a driver provides a prearranged
ride. This right to exclude all coverage may apply to any coverage included in an
automobile insurance policy including, but not limited to:
new text end

new text begin (1) liability coverage for bodily injury and property damage;
new text end

new text begin (2) uninsured and underinsured motorist coverage;
new text end

new text begin (3) basic economic loss benefits as defined under section 65B.44;
new text end

new text begin (4) medical payments coverage;
new text end

new text begin (5) comprehensive physical damage coverage; and
new text end

new text begin (6) collision physical damage coverage.
new text end

new text begin These exclusions apply notwithstanding any requirement under the Minnesota
No-Fault Automobile Insurance Act, sections 65B.41 to 65B.71. Nothing in this section
implies or requires that a personal automobile insurance policy provide coverage while
the driver is logged on to the transportation network company's digital network, while
the driver is engaged in a prearranged ride, or while the driver otherwise uses a vehicle
to transport passengers for compensation.
new text end

new text begin Nothing in this section shall be deemed to preclude an insurer from providing
coverage for the transportation network company driver's vehicle, if it so chooses to do
so by contract or endorsement.
new text end

new text begin (b) Automobile insurers that exclude coverage as permitted in paragraph (a) shall
have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing
in this section shall be deemed to invalidate or limit an exclusion contained in a policy,
including any policy in use or approved for use in Minnesota prior to the enactment of
this section that excludes coverage for vehicles used to carry persons or property for a
charge or available for hire by the public.
new text end

new text begin (c) An automobile insurer that defends or indemnifies a claim against a driver that is
excluded under the terms of its policy as permitted in paragraph (a) shall have a right of
contribution against other insurers that provide automobile insurance to the same driver in
satisfaction of the coverage requirements of subdivision 2 at the time of loss.
new text end

new text begin (d) In a claims coverage investigation, transportation network companies and any
insurer potentially providing coverage under subdivision 2 shall cooperate to facilitate
the exchange of relevant information with directly involved parties and any insurer of
the transportation network company driver if applicable, including the precise times
that a transportation network company driver logged on and off of the transportation
network company's digital network in the 12-hour period immediately preceding and in
the 12-hour period immediately following the accident and disclose to one another a
clear description of the coverage, exclusions, and limits provided under any automobile
insurance maintained under subdivision 2.
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 assignednew 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 .

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2015.
new text end