§ 1693 — Financial responsibility of transportation network companies

§ 1693. Financial responsibility of transportation network companies.\n1. A TNC driver, or TNC on the TNC driver's behalf through a group\npolicy, shall maintain insurance that recognizes that the driver is a\nTNC driver and provides financial responsibility coverage:\n (a) while the TNC driver is logged onto the TNC's digital network; and\n (b) while the TNC driver is engaged in a TNC prearranged trip.\n 2. (a) The following automobile financial responsibility insurance\nrequirements shall apply while a TNC driver is logged onto the TNC's\ndigital network but is not engaged in a TNC prearranged trip: insurance\nagainst loss from the liability imposed by law for damages, including\ndamages for care and loss of services, because of bodily injury to or\ndeath of any person, and injury to or destruction of property arising\nout of the ownership, maintenance, use or operation of a personal\nvehicle or vehicles within this state, or elsewhere in the United States\nin North America or Canada, subject to a limit, exclusive of interest\nand costs, with respect to each such occurrence, of at least\nseventy-five thousand dollars because of bodily injury to or death of\none person in any one accident and, subject to said limit for one\nperson, to a limit of at least one hundred fifty thousand dollars\nbecause of bodily injury to or death of two or more persons in any one\naccident, and to a limit of at least twenty-five thousand dollars\nbecause of injury to or destruction of property of others in any one\naccident, provided however, that such policy need not be for a period\ncoterminous with the registration period of the personal vehicle\ninsured, and coverage in satisfaction of the financial responsibility\nrequirements set forth in section three thousand four hundred twenty of\nthe insurance law, article fifty-one of the insurance law, and such\nother requirements or regulations that may apply for the purposes of\nsatisfying the financial responsibility requirements with respect to the\nuse or operation of a motor vehicle.\n (b) The coverage requirements of paragraph (a) of this subdivision may\nbe satisfied by any of the following:\n (i) insurance maintained by the TNC driver; or\n (ii) insurance provided through a group policy maintained by the TNC;\nor\n (iii) a combination of subparagraphs (i) and (ii) of this paragraph.\n 3. (a) The following automobile financial responsibility insurance\nrequirements shall apply while a TNC driver is engaged in a TNC\nprearranged trip: insurance against loss from the liability imposed by\nlaw for damages, including damages for care and loss of services,\nbecause of bodily injury to or death of any person, and injury to or\ndestruction of property arising out of the ownership, maintenance, use,\nor operation of a specific personal vehicle or vehicles within this\nstate, or elsewhere in the United States in North America or Canada,\nsubject to a limit, exclusive of interest and costs, with respect to\neach such occurrence, of at least one million two hundred fifty thousand\ndollars because of bodily injury to or death of any person, and injury\nto or destruction of property provided however, that such policy need\nnot be for a period coterminous with the registration period of the\npersonal vehicle insured, and coverage in satisfaction of the financial\nresponsibility requirements set forth in section three thousand four\nhundred twenty of the insurance law, article fifty-one of the insurance\nlaw; coverage provided in accordance with subsection (f) of section\nthree thousand four hundred twenty of the insurance law, providing\nsupplementary uninsured/underinsured motorist insurance for bodily\ninjury, in the amount of one million two hundred fifty thousand dollars\nbecause of bodily injury to or death of any person in any one accident;\nand such other requirements or regulations that may apply for the\npurposes of satisfying the financial responsibility requirements with\nrespect to the use or operation of a motor vehicle.\n (b) The coverage requirements of paragraph (a) of this subdivision may\nbe satisfied by any of the following:\n (i) insurance maintained by the TNC driver; or\n (ii) insurance provided through a group policy maintained by the TNC;\nor\n (iii) a combination of subparagraphs (i) and (ii) of this paragraph.\n 4. A TNC shall, upon entering into a contractual agreement with a TNC\ndriver, provide notice to the TNC driver that he or she may need\nadditional insurance coverage including motor vehicle physical damage\ncoverage as described in paragraph nineteen of subsection (a) of section\none thousand one hundred thirteen of the insurance law if the TNC\nvehicle being used by the TNC driver is subject to a lease or loan. A\nTNC shall also post this notice on its website in a prominent place, and\nprovide contact information for the department of financial services.\n 5. If insurance maintained by a TNC driver pursuant to subdivisions\ntwo and three of this section has lapsed or does not provide the\nrequired coverage, then the group policy maintained by a TNC shall\nprovide the coverage required by this section beginning with the first\ndollar of a claim and have the duty to defend such claim.\n 6. Coverage under a group policy maintained by the TNC shall not be\ndependent on the denial of a claim by the insurer that issued the\ninsurance policy used to register the TNC vehicle, nor shall that\ninsurer be required to first deny a claim.\n 7. (a) Except as provided in paragraph (b) of this subdivision, a\ngroup policy maintained by a TNC pursuant to subparagraph (ii) of\nparagraph (b) of subdivisions two or three of this section shall be\nplaced with an insurer authorized to write insurance in this state.\n (b) If a TNC is unable to purchase a group policy pursuant to\nsubparagraph (ii) of paragraph (b) of subdivisions two or three of this\nsection because such insurance is unavailable from authorized insurers\nthe TNC may acquire such group insurance with an excess line broker\npursuant to section two thousand one hundred eighteen of the insurance\nlaw.\n (c) The obligation to determine whether the insurance required by this\nsection is unavailable from insurers authorized to write insurance in\nthis state shall be made prior to the initial placement and at each\nrenewal of a policy.\n 8. A TNC driver who, while operating a TNC vehicle was logged on to\nthe TNC's digital network but not engaged in a TNC prearranged trip or\nwas engaged in a TNC prearranged trip, and has in effect the insurance\nrequired pursuant to this article, shall not be deemed to be in\nviolation of article six of this chapter during such time that he or she\nwas logged on to the TNC's digital network but not engaged in a TNC\nprearranged trip or was engaged in a TNC prearranged trip.\n 9. A TNC driver shall carry proof of coverage satisfying subdivisions\ntwo and three of this section with him or her at all times during his or\nher use or operation of a TNC vehicle in connection with a TNC's digital\nnetwork. Such proof of coverage shall be in such form as the\ncommissioner shall prescribe, which may be in the form of an insurance\nidentification card as defined in section three hundred eleven of this\nchapter. Any insurance identification card issued pursuant to the\nprovisions of this article shall be in addition to the insurance\nidentification card required pursuant to article six of this chapter,\nand nothing contained in this article shall be deemed to supersede the\nrequirements of such article six. Whenever the production of an\ninsurance identification card is required by law, a TNC driver shall (a)\nproduce the insurance identification card issued pursuant to article six\nof this chapter and, (b) if such driver (i) was logged onto the TNC's\ndigital network but not engaged in a TNC prearranged trip or (ii) was\nengaged in a TNC prearranged trip, such driver shall also produce the\ninsurance identification card required pursuant to this article.\n 10. The superintendent of financial services is authorized to issue\nsuch rules and regulations necessary to implement this section.\n 11. The superintendent of financial services may promulgate\nregulations to address insurance coverage under this section and section\nsixteen hundred ninety-five of this article when a TNC driver uses\nmultiple digital networks simultaneously.\n 12. Nothing in this section shall impose financial responsibility\nrequirements upon any entities operating as vehicles for hire in a city\nwith a population of one million or more.\n 13. An insurer shall not include a mandatory arbitration clause in a\npolicy issued pursuant to this section. Nothing in this section\nsupercedes the mandatory arbitration requirements contained in section\nfive thousand one hundred five of the insurance law.\n