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 hire using an online‑enabled application or platform to connect passengers with drivers using a personal vehicle.
(3)	Transportation network company insurance. – A liability 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 will not provide coverage when the driver uses a vehicle in connection with a transportation network company's online‑enabled application or platform.
(3)	That the driver's personal automobile insurance policy will not provide collision or comprehensive coverage for damage to the vehicle used by the driver from the moment the driver logs on to the transportation network company's online‑enabled application or platform to the moment the driver logs off the transportation network company's online‑enabled application or platform.
(c)	A transportation network company shall provide direct notice of participation in the transportation network to the driver's personal auto insurer unless that insurer is providing transportation network company insurance to the driver.
(d)	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, personal injury, and property damage. The requirements for the coverage required by this sub‑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 sub‑subdivision a. of this subdivision.
b.	Transportation network company insurance coverage provided under this subdivision shall also provide for uninsured motorist coverage and underinsured motorist coverage in the amount of one million dollars ($1,000,000) from the moment a passenger enters the vehicle of a participating driver until the passenger exits the vehicle.
c.	The insurer, in the case of insurance coverage provided under this subdivision, shall have the duty to defend and indemnify the insured.
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 a. 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.
(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 fifty thousand dollars ($50,000) for death and personal injury per person, one hundred thousand dollars ($100,000) for death and personal injury per incident, and thirty thousand dollars ($30,000) for property damage.
b.	Transportation network company insurance coverage shall also provide uninsured and underinsured motorist coverage as required by G.S. 279‑21(b)(3).
c.	If a participating driver carries collision physical damage coverage on the driver's personal auto policy, then the transportation network company insurance shall provide the same physical damage coverage from the moment a participating driver logs on to the transportation network company's online‑enabled application or platform until the driver logs off the online‑enabled application or platform.
d.	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. 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 sub‑subdivision d. of this subdivision.
e.	A transportation network company shall also maintain insurance coverage that provides excess coverage insuring the transportation network company and the driver in the amount of at least two hundred thousand dollars ($200,000) per occurrence to cover any liability arising from a participating driver using a vehicle in connection with a transportation network company's online‑enabled application or platform within the time periods specified in this subdivision, which liability exceeds the required coverage limits in sub‑subdivision a. of this subdivision.
f.	The insurer providing insurance coverage under this subdivision shall be the only insurer having the duty to defend any liability claim arising from an accident occurring within the time periods specified in this subdivision.
g.	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 d. 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.
(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.
(5)	This section shall not limit the liability of a transportation network company arising out of an automobile accident involving a participating driver in any action for damages against a transportation network company for an amount above the required insurance coverage.
(e)	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.
(f)	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 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.
(g)	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 of subdivision (1) of subsection (d) 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.
(h)	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.
(i)	A transportation network company shall not disclose to a third party any personally identifiable information of a transportation network company passenger unless one of the following applies:
(1)	The customer knowingly consents.
(2)	The disclosure is made pursuant to a requirement of State law.
(3)	The disclosure is to the Attorney General in order to investigate a complaint filed with the Attorney General against a transportation network company or a participating driver and the Attorney General treats the information as confidential information.
(j)	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.
(k)	Notwithstanding any other provision of this Chapter or Chapter 58 of the General Statutes, 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.