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House Study Bill 230 - IntroducedA Bill ForAn Act 1relating to automobile insurance required for
2transportation network company drivers.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321N.4, Code 2019, is amended to read as
2follows:
3321N.4 Financial responsibility.
41. A transportation network company driver, or a
5transportation network company on the driver’s behalf, shall
6maintain primary automobile insurance that does all of the
7following:
8a. Recognizes that the driver is a transportation network
9company driver or that the driver otherwise uses a motor
10vehicle to transport passengers for compensation.
11b. Covers the driver while the driver is logged on to the
12transportation network company’s digital network and while the
13driver is engaged in a prearranged ride.
14c. Covers the driver in the amounts set forth in subsections
15 subsection 2 and 3.
162. a. While a participating transportation network company
17driver is logged on to a transportation network company’s
18digital network and is available to receive requests for a
19prearranged ride, but is not engaged in a prearranged ride,
20primary automobile insurance maintained pursuant to paragraph
21“c” shall cover the driver in the amount of at least fifty
22thousand dollars because of bodily injury to or death of one
23person in any one accident, the amount of at least one hundred
24thousand dollars because of bodily injury to or death of two
25or more persons in any one accident, and the amount of at
26least twenty-five thousand dollars because of injury to or
27destruction of property of others in any one accident.
28b. The requirements of paragraph “a” shall be in addition to
29the automobile insurance requirements set forth in chapter 516A
30 or any other provision of law.
31c. The requirements of paragraph “a” may be satisfied by any
32of the following:
33(1) Insurance maintained by the transportation network
34company driver.
35(2) Insurance maintained by the transportation network
-1-1company.
2(3) A combination of subparagraphs (1) and (2).
33. 2. a. While a transportation network company driver
4is engaged in a prearranged ride, or is logged on to a
5transportation network company’s digital network and is
6available to receive requests for a prearranged ride but is not
7engaged in a prearranged ride, primary automobile insurance
8maintained pursuant to paragraph “c” shall cover the driver in
9the amount of at least one million dollars because of bodily
10injury to or death of one or more persons and injury to or
11destruction of property of others in any one accident.
12b. The requirements of paragraph “a” shall be in addition to
13the automobile insurance requirements set forth in chapter 516A
14or any other provision of law.
15c. The requirements of paragraph “a” may be satisfied by any
16of the following:
17(1) Insurance maintained by the transportation network
18company driver.
19(2) Insurance maintained by the transportation network
20company.
21(3) A combination of subparagraphs (1) and (2).
224. 3. If insurance maintained by a transportation network
23company driver under this chapter lapses or does not provide
24coverage in the amounts required by subsections subsection 2
25and 3, insurance maintained by a transportation network company
26shall provide coverage in the amounts required by subsections
27 subsection 2 and 3 beginning with the first dollar of a claim,
28and the company shall have a duty to defend the claim.
295. 4. Coverage under an automobile insurance policy
30maintained by a transportation network company under this
31chapter shall not be dependent on the insurer of a driver’s
32personal vehicle first denying a claim, nor shall a personal
33automobile insurance policy be required to first deny a claim.
346. 5. Insurance maintained under this chapter shall be
35provided by an insurer governed by chapter 515, or by a surplus
-2-1lines insurer governed by chapter 515I.
27. 6. Insurance maintained under this chapter shall be
3deemed to satisfy the financial responsibility requirements for
4a motor vehicle under chapter 321A.
58. 7. A transportation network company driver shall carry
6proof of financial liability coverage, as required by section
7321.20B, in the amounts required by subsections subsection
8 2 and 3, at all times during which the driver uses a motor
9vehicle in connection with the use of a transportation network
10company’s digital network. In the event of an accident, the
11driver shall provide proof of financial liability coverage
12to any directly interested party or insurer, and to any
13investigating police officer, upon request and in a format
14provided for under section 321.20B. Upon such a request, the
15driver shall also disclose to any directly interested party
16or insurer, and to any investigating police officer, whether
17the driver was logged on to a company’s digital network or was
18providing a prearranged ride at the time of the accident.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22Under current law, while a transportation network company
23(TNC) driver is logged on to a TNC’s digital network and is
24available to receive requests for a prearranged ride, but is
25not engaged in a prearranged ride, primary automobile insurance
26must cover the TNC driver in the amount of at least $50,000
27because of bodily injury to or death of one person in any one
28accident, at least $100,000 because of bodily injury to or
29death of two or more persons in any one accident, and at least
30$25,000 because of injury to or destruction of property of
31others in any one accident. While a TNC driver is engaged in
32a prearranged ride, primary automobile insurance must cover
33the TNC driver in the amount of at least $1 million because of
34bodily injury to or death of one or more persons and injury to
35or destruction of property of others in any one accident.
-3- 1This bill requires primary automobile insurance to cover
2the TNC driver in the amount of at least $1 million because of
3bodily injury to or death of one or more persons and injury to
4or destruction of property of others in any one accident while
5the TNC driver is logged on to a TNC’s digital network and is
6available to receive requests for a prearranged ride, but is
7not engaged in a prearranged ride.
-4-ns/rh
2transportation network company drivers.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321N.4, Code 2019, is amended to read as
2follows:
3321N.4 Financial responsibility.
41. A transportation network company driver, or a
5transportation network company on the driver’s behalf, shall
6maintain primary automobile insurance that does all of the
7following:
8a. Recognizes that the driver is a transportation network
9company driver or that the driver otherwise uses a motor
10vehicle to transport passengers for compensation.
11b. Covers the driver while the driver is logged on to the
12transportation network company’s digital network and while the
13driver is engaged in a prearranged ride.
14c. Covers the driver in the amounts set forth in subsections
15 subsection 2 and 3.
162. a. While a participating transportation network company
17driver is logged on to a transportation network company’s
18digital network and is available to receive requests for a
19prearranged ride, but is not engaged in a prearranged ride,
20primary automobile insurance maintained pursuant to paragraph
21“c” shall cover the driver in the amount of at least fifty
22thousand dollars because of bodily injury to or death of one
23person in any one accident, the amount of at least one hundred
24thousand dollars because of bodily injury to or death of two
25or more persons in any one accident, and the amount of at
26least twenty-five thousand dollars because of injury to or
27destruction of property of others in any one accident.
28b. The requirements of paragraph “a” shall be in addition to
29the automobile insurance requirements set forth in chapter 516A
30 or any other provision of law.
31c. The requirements of paragraph “a” may be satisfied by any
32of the following:
33(1) Insurance maintained by the transportation network
34company driver.
35(2) Insurance maintained by the transportation network
-1-1company.
2(3) A combination of subparagraphs (1) and (2).
33. 2. a. While a transportation network company driver
4is engaged in a prearranged ride, or is logged on to a
5transportation network company’s digital network and is
6available to receive requests for a prearranged ride but is not
7engaged in a prearranged ride, primary automobile insurance
8maintained pursuant to paragraph “c” shall cover the driver in
9the amount of at least one million dollars because of bodily
10injury to or death of one or more persons and injury to or
11destruction of property of others in any one accident.
12b. The requirements of paragraph “a” shall be in addition to
13the automobile insurance requirements set forth in chapter 516A
14or any other provision of law.
15c. The requirements of paragraph “a” may be satisfied by any
16of the following:
17(1) Insurance maintained by the transportation network
18company driver.
19(2) Insurance maintained by the transportation network
20company.
21(3) A combination of subparagraphs (1) and (2).
224. 3. If insurance maintained by a transportation network
23company driver under this chapter lapses or does not provide
24coverage in the amounts required by subsections subsection 2
25and 3, insurance maintained by a transportation network company
26shall provide coverage in the amounts required by subsections
27 subsection 2 and 3 beginning with the first dollar of a claim,
28and the company shall have a duty to defend the claim.
295. 4. Coverage under an automobile insurance policy
30maintained by a transportation network company under this
31chapter shall not be dependent on the insurer of a driver’s
32personal vehicle first denying a claim, nor shall a personal
33automobile insurance policy be required to first deny a claim.
346. 5. Insurance maintained under this chapter shall be
35provided by an insurer governed by chapter 515, or by a surplus
-2-1lines insurer governed by chapter 515I.
27. 6. Insurance maintained under this chapter shall be
3deemed to satisfy the financial responsibility requirements for
4a motor vehicle under chapter 321A.
58. 7. A transportation network company driver shall carry
6proof of financial liability coverage, as required by section
7321.20B, in the amounts required by subsections subsection
8 2 and 3, at all times during which the driver uses a motor
9vehicle in connection with the use of a transportation network
10company’s digital network. In the event of an accident, the
11driver shall provide proof of financial liability coverage
12to any directly interested party or insurer, and to any
13investigating police officer, upon request and in a format
14provided for under section 321.20B. Upon such a request, the
15driver shall also disclose to any directly interested party
16or insurer, and to any investigating police officer, whether
17the driver was logged on to a company’s digital network or was
18providing a prearranged ride at the time of the accident.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22Under current law, while a transportation network company
23(TNC) driver is logged on to a TNC’s digital network and is
24available to receive requests for a prearranged ride, but is
25not engaged in a prearranged ride, primary automobile insurance
26must cover the TNC driver in the amount of at least $50,000
27because of bodily injury to or death of one person in any one
28accident, at least $100,000 because of bodily injury to or
29death of two or more persons in any one accident, and at least
30$25,000 because of injury to or destruction of property of
31others in any one accident. While a TNC driver is engaged in
32a prearranged ride, primary automobile insurance must cover
33the TNC driver in the amount of at least $1 million because of
34bodily injury to or death of one or more persons and injury to
35or destruction of property of others in any one accident.
-3- 1This bill requires primary automobile insurance to cover
2the TNC driver in the amount of at least $1 million because of
3bodily injury to or death of one or more persons and injury to
4or destruction of property of others in any one accident while
5the TNC driver is logged on to a TNC’s digital network and is
6available to receive requests for a prearranged ride, but is
7not engaged in a prearranged ride.
-4-ns/rh