H.F. 2219 Section 1. NEW SECTION . 321N.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Digital network” means an online-enabled application, 4 software, internet site, or system offered or utilized by a 5 transportation network company that enables transportation 6 network company riders to prearrange rides with transportation 7 network company drivers. 8 2. “Personal vehicle” means a motor vehicle that is used by 9 a transportation network company driver and is owned, leased, 10 or otherwise authorized for use by the transportation network 11 company driver. “Personal vehicle” does not include a taxicab, 12 limousine, or other vehicle for hire. 13 3. “Prearranged ride” means the provision of transportation 14 by a transportation network company driver to a transportation 15 network company rider. A prearranged ride begins when a driver 16 accepts a ride request from a rider through a digital network 17 controlled by a transportation network company, continues while 18 the driver transports the requesting rider, and ends when 19 the last requesting rider departs from the driver’s personal 20 vehicle. A prearranged ride does not include transportation 21 provided using a taxicab, limousine, or other vehicle for hire. 22 4. “Transportation network company” or “company” means a 23 corporation, partnership, sole proprietorship, or other entity 24 that operates in this state and uses a digital network to 25 connect transportation network company riders to transportation 26 network company drivers who provide prearranged rides. A 27 transportation network company is not deemed to control, 28 direct, or manage a transportation network company driver that 29 connects to its digital network, or the driver’s personal 30 vehicle, except as agreed to by the company and the driver 31 pursuant to a written contract. 32 5. “Transportation network company driver” or “driver” means 33 an individual who does all of the following: 34 a. Receives connections to potential transportation network 35 -1- LSB 5572YH (3) 86 ns/nh 1/ 9

H.F. 2219 company riders and other related services from a transportation 1 network company in exchange for payment of a fee to the 2 transportation network company. 3 b. Uses a personal vehicle to offer or provide prearranged 4 rides to transportation network company riders upon connection 5 through a digital network controlled by a transportation 6 network company in return for compensation or payment of a fee. 7 6. “Transportation network company rider” or “rider” 8 means an individual or group of individuals who use a 9 transportation network company’s digital network to connect 10 with a transportation network company driver to request a 11 prearranged ride for the individual or group of individuals, 12 and who receive the prearranged ride in the driver’s personal 13 vehicle between locations chosen by the individual or group of 14 individuals. 15 Sec. 2. NEW SECTION . 321N.2 Financial responsibility. 16 1. A transportation network company driver, or a 17 transportation network company on the driver’s behalf, shall 18 maintain primary automobile insurance that does all of the 19 following: 20 a. Recognizes that the driver is a transportation network 21 company driver or that the driver otherwise uses a motor 22 vehicle to transport passengers for compensation. 23 b. Covers the driver while the driver is logged on to the 24 transportation network company’s digital network and while the 25 driver is engaged in a prearranged ride. 26 c. Covers the driver in the amounts set forth in subsections 27 2 and 3. 28 2. a. While a participating transportation network company 29 driver is logged on to a transportation network company’s 30 digital network and is available to receive requests for a 31 prearranged ride, but is not engaged in a prearranged ride, 32 primary automobile insurance maintained pursuant to paragraph 33 “c” shall cover the driver in the amount of at least fifty 34 thousand dollars because of bodily injury to or death of one 35 -2- LSB 5572YH (3) 86 ns/nh 2/ 9

H.F. 2219 person in any one accident, the amount of at least one hundred 1 thousand dollars because of bodily injury to or death of two 2 or more persons in any one accident, and the amount of at 3 least twenty-five thousand dollars because of injury to or 4 destruction of property of others in any one accident. 5 b. The requirements of paragraph “a” shall be in addition to 6 the automobile insurance requirements set forth in chapter 516A 7 or any other provision of law. 8 c. The requirements of paragraph “a” may be satisfied by any 9 of the following: 10 (1) Insurance maintained by the transportation network 11 company driver. 12 (2) Insurance maintained by the transportation network 13 company. 14 (3) A combination of subparagraphs (1) and (2). 15 3. a. While a transportation network company driver is 16 engaged in a prearranged ride, primary automobile insurance 17 maintained pursuant to paragraph “c” shall cover the driver in 18 the amount of at least one million dollars because of bodily 19 injury to or death of one or more persons and injury to or 20 destruction of property of others in any one accident. 21 b. The requirements of paragraph “a” shall be in addition to 22 the automobile insurance requirements set forth in chapter 516A 23 or any other provision of law. 24 c. The requirements of paragraph “a” may be satisfied by any 25 of the following: 26 (1) Insurance maintained by the transportation network 27 company driver. 28 (2) Insurance maintained by the transportation network 29 company. 30 (3) A combination of subparagraphs (1) and (2). 31 4. If insurance maintained by a transportation network 32 company driver under this chapter lapses or does not provide 33 coverage in the amounts required by subsections 2 and 3, 34 insurance maintained by a transportation network company shall 35 -3- LSB 5572YH (3) 86 ns/nh 3/ 9

H.F. 2219 provide coverage in the amounts required by subsections 2 and 1 3 beginning with the first dollar of a claim, and the company 2 shall have a duty to defend the claim. 3 5. Coverage under an automobile insurance policy maintained 4 by a transportation network company under this chapter 5 shall not be dependent on the insurer of a driver’s personal 6 vehicle first denying a claim, nor shall a personal automobile 7 insurance policy be required to first deny a claim. 8 6. Insurance maintained under this chapter shall be 9 provided by an insurer governed by chapter 515 or 518, or by 10 a surplus lines insurer governed by chapter 515I. A surplus 11 lines insurer that issues a policy pursuant to this section 12 shall be considered an insurance carrier duly authorized to 13 transact business in this state for the purposes of chapter 14 321A. 15 7. Insurance maintained under this chapter shall be deemed 16 to satisfy the financial responsibility requirements for a 17 motor vehicle under chapter 321A. 18 8. A transportation network company driver shall carry 19 proof of financial liability coverage, as required by section 20 321.20B, in the amounts required by subsections 2 and 3, at 21 all times during which the driver uses a motor vehicle in 22 connection with the use of a transportation network company’s 23 digital network. In the event of an accident, the driver 24 shall provide proof of financial liability coverage to any 25 directly interested party or insurer, and to any investigating 26 police officer, upon request and in a format provided for under 27 section 321.20B. Upon such a request, the driver shall also 28 disclose to any directly interested party or insurer, and 29 to any investigating police officer, whether the driver was 30 logged on to a company’s digital network or was providing a 31 prearranged ride at the time of the accident. 32 Sec. 3. NEW SECTION . 321N.3 Disclosure requirements. 33 A transportation network company shall disclose all of the 34 following information to a transportation network company 35 -4- LSB 5572YH (3) 86 ns/nh 4/ 9

H.F. 2219 driver in writing before the driver may accept a request from a 1 rider for a prearranged ride on the company’s digital network: 2 1. The types, amounts, terms, and limits of automobile 3 insurance provided by the company to the driver while the 4 driver uses a personal vehicle in connection with the use of 5 the company’s digital network. 6 2. That the driver’s own automobile insurance policy, 7 depending on the policy’s terms, may not provide any coverage 8 while the driver is logged on to the company’s digital network 9 and is available to receive requests for a prearranged ride, or 10 while the driver is engaged in a prearranged ride. 11 Sec. 4. NEW SECTION . 321N.4 Insurers. 12 1. a. Notwithstanding any other provision of law to the 13 contrary, an insurer that writes automobile insurance within 14 this state may exclude any and all coverage afforded to an 15 insured person under a policy issued to the owner or operator 16 of a personal vehicle for any injury or loss that occurs while 17 the insured is logged on to a transportation network company’s 18 digital network or while the insured is providing a prearranged 19 ride. This right to exclude coverage may apply to any type 20 of coverage provided for in the insured’s policy, including 21 but not limited to liability coverage for bodily injury and 22 property damage, personal injury protection coverage, uninsured 23 and underinsured motorist coverage, medical payments coverage, 24 comprehensive physical damage coverage, and collision physical 25 damage coverage. 26 b. This chapter shall not be construed to require an 27 insurer to provide coverage to an individual while the 28 individual is logged on to a company’s digital network, is 29 engaged in a prearranged ride, or is otherwise transporting 30 another individual or group of individuals in a vehicle for 31 compensation. 32 c. This chapter shall not be construed to preclude an 33 insurer from providing coverage for a transportation network 34 company driver’s personal vehicle, if the insurer chooses to do 35 -5- LSB 5572YH (3) 86 ns/nh 5/ 9

H.F. 2219 so by contract or endorsement. 1 2. a. An insurer that excludes coverage pursuant to 2 subsection 1 shall not have a duty to defend or indemnify a 3 claim expressly excluded from a policy issued by the insurer. 4 This chapter shall not be deemed to invalidate or limit an 5 exclusion contained in a policy, including a policy in use or 6 approved for use in this state prior to the effective date of 7 this Act, that excludes coverage for vehicles used to carry 8 individuals or property for compensation or vehicles available 9 for hire by the public. 10 b. An insurer that defends or indemnifies a claim against an 11 insured transportation network company driver that is excluded 12 under the terms of the driver’s policy shall have a right 13 of action for contribution or indemnity against an insurer 14 providing automobile insurance to the driver under this chapter 15 during the period in which the loss occurred. 16 3. In a claims coverage investigation, any involved 17 transportation network company and any insurer potentially 18 providing coverage pursuant to this chapter shall cooperate to 19 facilitate the exchange of relevant information with parties 20 directly involved in the claim, and with any insurer of the 21 transportation network company driver, where applicable, 22 including but not limited to the precise times during which 23 the driver logged on and off of the company’s digital network 24 in the twelve-hour period immediately preceding and in the 25 twelve-hour period immediately following the accident that 26 resulted in the claim, and shall disclose to one another a 27 clear description of any relevant automobile insurance provided 28 pursuant to this chapter, including any applicable limits and 29 exclusions. 30 Sec. 5. APPLICABILITY OF INSURANCE PROVISIONS. The section 31 of this Act enacting section 321N.2 shall apply on and after 32 the date of approval of the form filings necessary to implement 33 section 321N.2 by the commissioner of insurance as required 34 under 191 IAC 20.4. 35 -6- LSB 5572YH (3) 86 ns/nh 6/ 9

H.F. 2219 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill provides for the regulation of transportation 4 network companies (TNCs). The bill defines “transportation 5 network company” as an entity operating in this state that uses 6 a digital network to connect TNC riders to TNC drivers who 7 provide prearranged rides. The bill provides that a TNC is not 8 deemed to control, direct, or manage a TNC driver that connects 9 to the TNC’s digital network, or the driver’s personal vehicle, 10 except as agreed to by the TNC and the driver pursuant to a 11 written contract. The bill further defines “digital network”, 12 “personal vehicle”, “prearranged ride”, “transportation network 13 company driver”, and “transportation network company rider”. 14 The bill provides that during the period in which a TNC 15 driver is logged on to a TNC’s digital network and is available 16 to receive requests for a prearranged ride, but is not 17 providing a prearranged ride, primary automobile insurance 18 shall cover the driver in the amount of at least $50,000 for 19 bodily injury to or death of one person in any one accident, 20 $100,000 for bodily injury to or death of two or more persons 21 in any one accident, and $25,000 for injury to or destruction 22 of property of others in any one accident. The bill further 23 provides that during the period in which a TNC driver is 24 providing a prearranged ride, primary automobile insurance 25 shall cover the driver in the amount of at least $1 million for 26 bodily injury to or death of one or more persons and injury to 27 or destruction of property of others in any one accident. The 28 insurance required by the bill may be maintained by the TNC 29 driver, the TNC, or both. 30 The bill provides that if the insurance maintained by a 31 TNC driver lapses or does not provide coverage in the amounts 32 required by the bill, insurance maintained by a TNC shall 33 provide the coverage beginning with the first dollar of a 34 claim, and the TNC shall have a duty to defend the claim. In 35 -7- LSB 5572YH (3) 86 ns/nh 7/ 9

H.F. 2219 addition, insurance maintained by a TNC shall not be dependent 1 on the insurer of a driver’s personal vehicle first denying a 2 claim. 3 The insurance required by the bill shall be provided by an 4 insurer governed by Code chapter 515 or 518, or by a surplus 5 lines insurer governed by Code chapter 515I. 6 The bill requires that a TNC driver shall carry proof of 7 financial liability coverage at all times during which the 8 driver uses a vehicle in connection with the use of a TNC’s 9 digital network. In the event of an accident, the driver 10 shall provide the proof of financial liability coverage, upon 11 request, to any directly interested party or insurer, and to 12 any investigating police officer. 13 The bill requires a TNC to disclose to a driver in writing 14 the types, amounts, terms, and limits of automobile insurance 15 provided by the TNC to the driver while the driver uses a 16 personal vehicle in connection with the use of the TNC’s 17 digital network, and the fact that the driver’s own automobile 18 insurance policy may not provide coverage while the driver 19 is logged on to the TNC’s digital network or is providing a 20 prearranged ride. 21 The bill provides that an insurer may exclude coverage 22 afforded to an insured person under a policy issued to the 23 owner or operator of a personal vehicle for any injury or loss 24 that occurs while the insured is logged on to a TNC’s digital 25 network or while the insured is providing a prearranged ride. 26 An insurer that excludes coverage in this way shall not have a 27 duty to defend or indemnify a claim so excluded from a policy 28 issued by the insurer. An insurer that defends or indemnifies 29 a claim against an insured TNC driver that is excluded under 30 the terms of the driver’s policy shall have a right of action 31 for contribution or indemnity against an insurer providing 32 automobile insurance to the driver during the period in which 33 the loss occurred. 34 In addition, the bill provides that in a claims coverage 35 -8- LSB 5572YH (3) 86 ns/nh 8/ 9