99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2811

 

Introduced 2/17/2016, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143.13b new
625 ILCS 57/5
625 ILCS 57/10
625 ILCS 57/20
625 ILCS 57/25
625 ILCS 57/30
625 ILCS 57/32

    Amends the Illinois Insurance Code. Provides that automobile insurers may exclude any or all coverage to a transportation network company driver's personal vehicle for any loss or injury that occurs while the driver is logged on to the transportation network company's digital network or while the driver is engaged in a prearranged ride. Amends the Transportation Network Providers Act. Provides definitions for: digital network, personal vehicle, prearranged ride, and transportation network company passenger. Provides automobile insurance requirements for a transportation network company and a transportation network company driver while a driver is logged on to the transportation network company's digital network and while a driver is engaged in a prearranged ride. Effective immediately.


LRB099 16811 AXK 41158 b

 

 

A BILL FOR

 

SB2811LRB099 16811 AXK 41158 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by adding
5Section 143.13b as follows:
 
6    (215 ILCS 5/143.13b new)
7    Sec. 143.13b. Coverage for transportation network company
8drivers.
9    (a) For the purposes of this Section, "transportation
10network company", "transportation network company driver",
11"personal vehicle", "digital network", and "prearranged ride"
12have the meaning as defined in the Transportation Network
13Providers Act.
14    (b) Insurers that write automobile insurance in this State
15may exclude any or all coverage afforded under a policy issued
16to a transportation network company driver's personal vehicle
17for any loss or injury that occurs while a transportation
18network company driver is logged on to the transportation
19network company's digital network or while the driver is
20providing a prearranged ride. This right to exclude coverage
21may apply to any policy, including, but not limited to:
22        (1) liability coverage for bodily injury and property
23    damage;

 

 

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1        (2) personal injury protection coverage;
2        (3) uninsured and underinsured motorist coverage;
3        (4) medical payments coverage;
4        (5) comprehensive physical damage coverage; and
5        (6) collision physical damage coverage.
6    (c) Automobile insurers that exclude coverage under this
7Section shall have no duty to defend or indemnify any expressly
8excluded claim. An insurer who defends or indemnifies a claim
9that is excluded under its policy under this Section shall have
10a right to contribution against other insurers that provide
11automobile insurance to the same driver.
12    (d) In a claims coverage investigation, any insurer
13potentially providing coverage to the transportation network
14company driver's personal vehicle shall cooperate with the
15transportation network company to facilitate the exchange of
16relevant information with directly involved parties, including
17the precise times that the transportation network company
18driver logged on or off of the digital network in a 12 hour
19period immediately preceding and in a 12 hour period
20immediately following the accident, and the description of
21coverage, exclusions, and limits provided under the insurance
22coverage.
 
23    Section 10. The Transportation Network Providers Act is
24amended by changing Sections 5, 10, 20, 25, 30, and 32 as
25follows:
 

 

 

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1    (625 ILCS 57/5)
2    (Section scheduled to be repealed on June 1, 2020)
3    Sec. 5. Definitions.
4    "Digital network" means any online-enabled application,
5software, website, or system offered or utilized by the
6transportation network company that enables the prearrangement
7of rides with transportation network company drivers.
8    "Personal vehicle" means a vehicle that is used by a
9transportation network company driver and is:
10        (1) owned, leased, or otherwise authorized for use by
11    the transportation network company driver; and
12        (2) not a taxicab, limousine, or other for-hire
13    vehicle.
14    "Prearranged ride" means the provision of transportation
15given by a transportation network company driver to a
16transportation network company passenger through a digital
17network controlled by a transportation network company,
18continuing while the driver transports a requesting passenger,
19and ending when the last requesting passenger departs from the
20personal vehicle. Prearranged ride does not include
21transportation provided by a taxi, limousine, or other for-hire
22vehicle, as defined in the Illinois Vehicle Code.
23    "Transportation network company" or "TNC" means a
24corporation, partnership, sole proprietorship, or other an
25entity operating in this State that uses a digital network or

 

 

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1software application service to connect transportation network
2company passengers to transportation network company services
3provided by transportation network company drivers who provide
4prearranged rides. A TNC shall is not be deemed to own,
5control, direct operate, or manage the personal vehicles or
6transportation network company drivers that connect to its
7digital network, except when agreed to by written contract used
8by TNC drivers, and is not a taxicab association or a for-hire
9vehicle owner.
10    "Transportation network company driver" or "TNC driver"
11means an individual who operates a motor vehicle that is:
12        (1) receives connections to potential passengers and
13    related services from a transportation network company in
14    exchange for payment of a fee; and owned, leased, or
15    otherwise authorized for use by the individual;
16        (2) upon connection through a digital network
17    controlled by a transportation network company, uses a
18    personal vehicle to offer or provide a prearranged ride to
19    passengers in return for compensation or payment of a fee
20    from the transportation network company. not a taxicab or
21    for-hire public passenger vehicle; and
22        (3) used to provide transportation network company
23    services.
24    "Transportation network company passenger" or "passenger"
25means an individual who uses a transportation network company's
26digital network to connect with a transportation network driver

 

 

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1who provides prearranged rides to the passenger in the driver's
2personal vehicle between points chosen by the passenger.
3    "Transportation network company services" or "TNC
4services" means transportation of a passenger between points
5chosen by the passenger and prearranged with a TNC driver
6through the use of a TNC digital network or software
7application. TNC services shall begin when a TNC driver accepts
8a request for transportation received through the TNC's digital
9network or software application service, continue while the TNC
10driver transports the passenger in the TNC driver's vehicle,
11and end when the passenger exits the TNC driver's vehicle. TNC
12service is not a taxicab, for-hire vehicle, or street hail
13service.
14(Source: P.A. 98-1173, eff. 6-1-15.)
 
15    (625 ILCS 57/10)
16    (Section scheduled to be repealed on June 1, 2020)
17    Sec. 10. Insurance.
18    (a) Transportation network companies and participating TNC
19drivers shall comply with the automobile liability insurance
20requirements of this Section as required.
21    (a-5) TNC drivers, or transportation network companies on
22the behalf of TNC drivers, shall maintain primary automobile
23insurance that:
24        (1)recognizes the driver as a TNC driver; and
25        (2) covers the driver while the driver is logged on to

 

 

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1    the TNC digital network or while the driver is engaged in a
2    prearranged ride.
3    (b) The following automobile liability insurance
4requirements shall apply while from the moment a participating
5TNC driver is logged logs on to the transportation network
6company's digital network and is able to receive requests, but
7is not engaged in a prearranged ride or software application
8until the TNC driver accepts a request to transport a
9passenger, and from the moment the TNC driver completes the
10transaction on the digital network or software application or
11the ride is complete, whichever is later, until the TNC driver
12either accepts another ride request on the digital network or
13software application or logs off the digital network or
14software application:
15        (1) Primary automobile Automobile liability insurance
16    shall be in the amount of at least $50,000 for death and
17    personal injury per person, $100,000 for death and personal
18    injury per incident, and $25,000 for property damage.
19        (2) The coverage requirements Contingent automobile
20    liability insurance in the amounts required in paragraph
21    (1) of this subsection (b) may be satisfied by any of the
22    following: shall be maintained by a transportation network
23    company and provide coverage in the event a participating
24    TNC driver's own automobile liability policy excludes
25    coverage according to its policy terms or does not provide
26    at least the limits of coverage required in paragraph (1)

 

 

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1    of this subsection (b).
2            (A) automobile insurance maintained by the TNC
3        driver;
4            (B) automobile insurance maintained by the
5        transportation network company; or
6            (C) any combination of subparagraphs (A) and (B).
7        (3) Coverage under an automobile insurance policy
8    maintained by a TNC under this subsection (b) shall not be
9    dependent on a personal automobile insurer first denying a
10    claim nor shall a personal automobile insurance policy be
11    required to first deny a claim.
12    (c) The following automobile liability insurance
13requirements shall apply while from the moment a TNC driver is
14engaged in a prearranged ride accepts a ride request on the
15transportation network company's digital network or software
16application until the TNC driver completes the transaction on
17the digital network or software application or until the ride
18is complete, whichever is later:
19        (1) Primary automobile Automobile liability insurance
20    shall be primary and in the amount of at least $1,000,000
21    for death, personal injury, and property damage. The
22    requirements for the coverage required by this paragraph
23    (1) may be satisfied by any of the following:
24            (A) automobile liability insurance maintained by a
25        participating TNC driver;
26            (B) automobile liability company insurance

 

 

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1        maintained by a transportation network company; or
2            (C) any combination of subparagraphs (A) and (B).
3        (2) The Insurance coverage requirements in paragraph
4    (1) of this provided under this subsection (c) may be
5    satisfied by any of the following: shall also provide for
6    uninsured motorist coverage and underinsured motorist
7    coverage in the amount of $50,000 from the moment a
8    passenger enters the vehicle of a participating TNC driver
9    until the passenger exits the vehicle.
10            (A) automobile insurance maintained by the TNC
11        driver;
12            (B) automobile insurance maintained by the
13        transportation network company; or
14            (C) any combination of subparagraphs (A) and (B).
15        (3) The insurer, in the case of insurance coverage
16    provided under this subsection (c), shall have the duty to
17    defend and indemnify the insured.
18        (4) Coverage under an automobile liability insurance
19    policy maintained by a TNC required under this subsection
20    (c) shall not be dependent on a personal automobile insurer
21    insurance policy first denying a claim nor shall a personal
22    automobile insurance policy be required to first deny a
23    claim.
24    (c-5) A TNC driver must carry proof of coverage satisfying
25subsections (b) and (c) of this Section at all times while
26operating a vehicle in connection with a TNC digital network.

 

 

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1    (d) In every instance when automobile liability insurance
2maintained by a participating TNC driver to fulfill the
3insurance obligations of this Section has lapsed, does not
4provide the required coverage, or ceased to exist, the
5transportation network company shall provide the coverage
6required by this Section beginning with the first dollar of a
7claim and have the duty to defend the claim.
8    (d-5) In the event of an accident, the TNC driver shall,
9upon request, provide to interested parties, automobile
10insurers, and investigating police officers, insurance
11coverage information and information as to whether the driver
12was logged on to the TNC digital network or on a prearranged
13ride at the time of the accident.
14    (e) This Section shall not limit the liability of a
15transportation network company arising out of an automobile
16accident involving a participating TNC driver in any action for
17damages against a transportation network company for an amount
18above the required insurance coverage.
19    (f) Before a TNC driver is allowed to accept a request for
20a prearranged ride on the TNC digital network, the The
21transportation network company shall disclose, in writing, to
22the TNC driver TNC drivers, as part of its agreement with those
23TNC drivers, the following:
24        (1) the insurance coverage, including the types of
25    coverage and limits for each coverage, of liability that
26    the transportation network company provides while the TNC

 

 

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1    driver uses a personal vehicle in connection with a
2    transportation network company's digital network or
3    software application; and
4        (2) that the TNC driver's own automobile insurance
5    policy may not provide coverage while the TNC driver is
6    logged on to the TNC digital network and is able to receive
7    requests or is engaged in a prearranged ride, uses a
8    vehicle in connection with a transportation network
9    company digital network depending on its terms.
10    (g) An insurance policy required by this Section may be
11placed with an admitted Illinois insurer, or with an authorized
12surplus line insurer under Section 445 of the Illinois
13Insurance Code; and is not subject to any restriction or
14limitation on the issuance of a policy contained in Section
15445a of the Illinois Insurance Code.
16    (h) Any insurance policy required by this Section shall
17satisfy the financial responsibility requirement for a motor
18vehicle under Sections 7-203 and 7-601 of the Illinois Vehicle
19Code.
20    (i) If a transportation network company's insurer makes a
21payment for a claim covered under comprehensive coverage or
22collision coverage, the transportation network company shall
23cause its insurer to issue the payment directly to the business
24repairing the vehicle, or jointly to the owner of the vehicle
25and the primary lienholder on the covered vehicle.
26(Source: P.A. 98-1173, eff. 6-1-15; 99-56, eff. 7-16-15.)
 

 

 

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1    (625 ILCS 57/20)
2    (Section scheduled to be repealed on June 1, 2020)
3    Sec. 20. Non-discrimination.
4    (a) The TNC shall adopt and notify TNC drivers of a policy
5of non-discrimination on the basis of destination, race, color,
6national origin, religious belief or affiliation, sex,
7disability, age, sexual orientation, or gender identity with
8respect to passengers and potential passengers.
9    (b) TNC drivers shall comply with all applicable laws
10regarding non-discrimination against passengers or potential
11passengers on the basis of destination, race, color, national
12origin, religious belief or affiliation, sex, disability, age,
13sexual orientation, or gender identity.
14    (c) TNC drivers shall comply with all applicable laws
15relating to accommodation of service animals.
16    (d) A TNC shall not impose additional charges for providing
17services to persons with physical disabilities because of those
18disabilities.
19    (e) A TNC shall provide passengers an opportunity to
20indicate whether they require a wheelchair accessible vehicle.
21If a TNC cannot arrange wheelchair-accessible TNC service in
22any instance, it shall direct the passenger to an alternate
23provider of wheelchair-accessible service, if available.
24    (f) If a unit of local government has requirements for
25licensed chauffeurs not to discriminate in providing service in

 

 

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1under-served areas, TNC drivers providing prearranged rides
2participating in TNC services within that unit of local
3government shall be subject to the same non-discrimination
4requirements for providing service in under-served areas.
5(Source: P.A. 98-1173, eff. 6-1-15.)
 
6    (625 ILCS 57/25)
7    (Section scheduled to be repealed on June 1, 2020)
8    Sec. 25. Safety.
9    (a) The TNC shall implement a zero tolerance policy on the
10use of drugs or alcohol while a TNC driver is engaged in a
11prearranged ride providing TNC services or is logged into the
12TNC's digital network and is able to receive requests, but is
13not engaged in a prearranged ride providing TNC services.
14    (b) The TNC shall provide notice of the zero tolerance
15policy on its website, as well as procedures to report a
16complaint about a driver with whom a passenger was matched and
17whom the passenger reasonably suspects was under the influence
18of drugs or alcohol during the course of the trip.
19    (c) Upon receipt of a passenger's complaint alleging a
20violation of the zero tolerance policy, the TNC shall
21immediately suspend the TNC driver's access to the TNC's
22digital network platform, and shall conduct an investigation
23into the reported incident. The suspension shall last the
24duration of the investigation.
25    (d) The TNC shall require that any motor vehicle that a TNC

 

 

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1driver will use to provide prearranged rides TNC services meets
2vehicle safety and emissions requirements for a private motor
3vehicle in this State.
4    (e) TNCs or TNC drivers are not common carriers, contract
5carriers or motor carriers, as defined by applicable State law,
6nor do they provide taxicab or for-hire vehicle service.
7(Source: P.A. 98-1173, eff. 6-1-15.)
 
8    (625 ILCS 57/30)
9    (Section scheduled to be repealed on June 1, 2020)
10    Sec. 30. Operational.
11    (a) A TNC may charge a fare for the services provided to
12passengers; provided that, if a fare is charged, the TNC shall
13disclose to passengers the fare calculation method on its
14website or within the software application service.
15    (b) The TNC shall provide passengers with the applicable
16rates being charged and the option to receive an estimated fare
17before the passenger enters the TNC driver's personal vehicle.
18    (c) The TNC's software application or website shall display
19a picture of the TNC driver, and the license plate number of
20the motor vehicle utilized for providing the prearranged ride
21TNC service before the passenger enters the TNC driver's
22vehicle.
23    (d) Within a reasonable period of time following the
24completion of a trip, a TNC shall transmit an electronic
25receipt to the passenger that lists:

 

 

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1        (1) the origin and destination of the trip;
2        (2) the total time and distance of the trip; and
3        (3) an itemization of the total fare paid, if any.
4    (e) Dispatches for prearranged rides TNC services shall be
5made only to eligible TNC drivers under Section 15 of this Act
6who are properly licensed under State law and local ordinances
7addressing these drivers if applicable.
8    (f) A taxicab may accept a request for transportation
9received through a TNC's digital network or software
10application service, and may charge a fare for those services
11that is similar to those charged by a TNC.
12(Source: P.A. 98-1173, eff. 6-1-15.)
 
13    (625 ILCS 57/32)
14    (Section scheduled to be repealed on June 1, 2020)
15    Sec. 32. Preemption. A unit of local government, whether or
16not it is a home rule unit, may not regulate transportation
17network companies, transportation network company drivers, or
18prearranged rides transportation network company services in a
19manner that is less restrictive than the regulation by the
20State under this Act. This Section is a limitation under
21subsection (i) of Section 6 of Article VII of the Illinois
22Constitution on the concurrent exercise by home rule units of
23powers and functions exercised by the State.
24(Source: P.A. 99-56, eff. 7-16-15.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.