SB2811 99TH GENERAL ASSEMBLY

LRB099 16811 AXK 41158 b

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.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Section 143.13b as follows:

(215 ILCS 5/143.13b new)

Sec. 143.13b. Coverage for transportation network company drivers.

(a) For the purposes of this Section, "transportation network company", "transportation network company driver", "personal vehicle", "digital network", and "prearranged ride" have the meaning as defined in the Transportation Network Providers Act.

(b) Insurers that write automobile insurance in this State may exclude any or all coverage afforded under a policy issued to a transportation network company driver's personal vehicle for any loss or injury that occurs while a transportation network company driver is logged on to the transportation network company's digital network or while the driver is providing a prearranged ride. This right to exclude coverage may apply to any policy, including, but not limited to:

(1) liability coverage for bodily injury and property damage;

(2) personal injury protection coverage;

(3) uninsured and underinsured motorist coverage;

(4) medical payments coverage;

(5) comprehensive physical damage coverage; and

(6) collision physical damage coverage.

(c) Automobile insurers that exclude coverage under this Section shall have no duty to defend or indemnify any expressly excluded claim. An insurer who defends or indemnifies a claim that is excluded under its policy under this Section shall have a right to contribution against other insurers that provide automobile insurance to the same driver.

(d) In a claims coverage investigation, any insurer potentially providing coverage to the transportation network company driver's personal vehicle shall cooperate with the transportation network company to facilitate the exchange of relevant information with directly involved parties, including the precise times that the transportation network company driver logged on or off of the digital network in a 12 hour period immediately preceding and in a 12 hour period immediately following the accident, and the description of coverage, exclusions, and limits provided under the insurance coverage.

Section 10. The Transportation Network Providers Act is amended by changing Sections 5, 10, 20, 25, 30, and 32 as follows:

(625 ILCS 57/5)

(Section scheduled to be repealed on June 1, 2020)

Sec. 5. Definitions.

"Digital network" means any online-enabled application, software, website, or system offered or utilized by the transportation network company that enables the prearrangement of rides with transportation network company drivers.

"Personal vehicle" means a vehicle that is used by a transportation network company driver and is:

(1) owned, leased, or otherwise authorized for use by the transportation network company driver; and

(2) not a taxicab, limousine, or other for-hire vehicle.

"Prearranged ride" means the provision of transportation given by a transportation network company driver to a transportation network company passenger through a digital network controlled by a transportation network company, continuing while the driver transports a requesting passenger, and ending when the last requesting passenger departs from the personal vehicle. Prearranged ride does not include transportation provided by a taxi, limousine, or other for-hire vehicle, as defined in the Illinois Vehicle Code.

"Transportation network company" or "TNC" means a corporation, partnership, sole proprietorship, or other an entity operating in this State that uses a digital network or software application service to connect transportation network company passengers to transportation network company services provided by transportation network company drivers who provide prearranged rides. A TNC shall is not be deemed to own, control, direct operate, or manage the personal vehicles or transportation network company drivers that connect to its digital network, except when agreed to by written contract used by TNC drivers, and is not a taxicab association or a for-hire vehicle owner.

"Transportation network company driver" or "TNC driver" means an individual who operates a motor vehicle that is:

(1) receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee; and owned, leased, or otherwise authorized for use by the individual;

(2) upon connection through a digital network controlled by a transportation network company, uses a personal vehicle to offer or provide a prearranged ride to passengers in return for compensation or payment of a fee from the transportation network company. not a taxicab or for-hire public passenger vehicle; and

(3) used to provide transportation network company services.

"Transportation network company passenger" or "passenger" means an individual who uses a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the passenger in the driver's personal vehicle between points chosen by the passenger.

"Transportation network company services" or "TNC services" means transportation of a passenger between points chosen by the passenger and prearranged with a TNC driver through the use of a TNC digital network or software application. TNC services shall begin when a TNC driver accepts a request for transportation received through the TNC's digital network or software application service, continue while the TNC driver transports the passenger in the TNC driver's vehicle, and end when the passenger exits the TNC driver's vehicle. TNC service is not a taxicab, for-hire vehicle, or street hail service.

(Source: P.A. 98-1173, eff. 6-1-15.)

(625 ILCS 57/10)

(Section scheduled to be repealed on June 1, 2020)

Sec. 10. Insurance.

(a) Transportation network companies and participating TNC drivers shall comply with the automobile liability insurance requirements of this Section as required.

(a-5) TNC drivers, or transportation network companies on the behalf of TNC drivers, shall maintain primary automobile insurance that:

(1)recognizes the driver as a TNC driver; and

(2) covers the driver while the driver is logged on to the TNC digital network or while the driver is engaged in a prearranged ride.

(b) The following automobile liability insurance requirements shall apply while from the moment a participating TNC driver is logged logs on to the transportation network company's digital network and is able to receive requests, but is not engaged in a prearranged ride or software application until the TNC driver accepts a request to transport a passenger, and from the moment the TNC driver completes the transaction on the digital network or software application or the ride is complete, whichever is later, until the TNC driver either accepts another ride request on the digital network or software application or logs off the digital network or software application:

(1) Primary automobile Automobile liability insurance shall be in the amount of at least $50,000 for death and personal injury per person, $100,000 for death and personal injury per incident, and $25,000 for property damage.

(2) The coverage requirements Contingent automobile liability insurance in the amounts required in paragraph (1) of this subsection (b) may be satisfied by any of the following: shall be maintained by a transportation network company and provide coverage in the event a participating TNC driver's own automobile liability policy excludes coverage according to its policy terms or does not provide at least the limits of coverage required in paragraph (1) of this subsection (b).

(A) automobile insurance maintained by the TNC driver;

(B) automobile insurance maintained by the transportation network company; or

(C) any combination of subparagraphs (A) and (B).

(3) Coverage under an automobile insurance policy maintained by a TNC under this subsection (b) shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.

(c) The following automobile liability insurance requirements shall apply while from the moment a TNC driver is engaged in a prearranged ride accepts a ride request on the transportation network company's digital network or software application until the TNC driver completes the transaction on the digital network or software application or until the ride is complete, whichever is later:

(1) Primary automobile Automobile liability insurance shall be primary and in the amount of at least $1,000,000 for death, personal injury, and property damage. The requirements for the coverage required by this paragraph (1) may be satisfied by any of the following:

(A) automobile liability insurance maintained by a participating TNC driver;

(B) automobile liability company insurance maintained by a transportation network company; or

(C) any combination of subparagraphs (A) and (B).

(2) The Insurance coverage requirements in paragraph (1) of this provided under this subsection (c) may be satisfied by any of the following: shall also provide for uninsured motorist coverage and underinsured motorist coverage in the amount of $50,000 from the moment a passenger enters the vehicle of a participating TNC driver until the passenger exits the vehicle.

(A) automobile insurance maintained by the TNC driver;

(B) automobile insurance maintained by the transportation network company; or

(C) any combination of subparagraphs (A) and (B).

(3) The insurer, in the case of insurance coverage provided under this subsection (c), shall have the duty to defend and indemnify the insured.

(4) Coverage under an automobile liability insurance policy maintained by a TNC required under this subsection (c) shall not be dependent on a personal automobile insurer insurance policy first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.

(c-5) A TNC driver must carry proof of coverage satisfying subsections (b) and (c) of this Section at all times while operating a vehicle in connection with a TNC digital network.

(d) In every instance when automobile liability insurance maintained by a participating TNC driver to fulfill the insurance obligations of this Section has lapsed, does not provide the required coverage, or ceased to exist, the transportation network company shall provide the coverage required by this Section beginning with the first dollar of a claim and have the duty to defend the claim.

(d-5) In the event of an accident, the TNC driver shall, upon request, provide to interested parties, automobile insurers, and investigating police officers, insurance coverage information and information as to whether the driver was logged on to the TNC digital network or on a prearranged ride at the time of the accident.

(e) This Section shall not limit the liability of a transportation network company arising out of an automobile accident involving a participating TNC driver in any action for damages against a transportation network company for an amount above the required insurance coverage.

(f) Before a TNC driver is allowed to accept a request for a prearranged ride on the TNC digital network, the The transportation network company shall disclose, in writing, to the TNC driver TNC drivers, as part of its agreement with those TNC drivers, the following:

(1) the insurance coverage, including the types of coverage and limits for each coverage, of liability that the transportation network company provides while the TNC driver uses a personal vehicle in connection with a transportation network company's digital network or software application; and

(2) that the TNC driver's own automobile insurance policy may not provide coverage while the TNC driver is logged on to the TNC digital network and is able to receive requests or is engaged in a prearranged ride, uses a vehicle in connection with a transportation network company digital network depending on its terms.

(g) An insurance policy required by this Section may be placed with an admitted Illinois insurer, or with an authorized surplus line insurer under Section 445 of the Illinois Insurance Code; and is not subject to any restriction or limitation on the issuance of a policy contained in Section 445a of the Illinois Insurance Code.

(h) Any insurance policy required by this Section shall satisfy the financial responsibility requirement for a motor vehicle under Sections 7-203 and 7-601 of the Illinois Vehicle Code.

(i) If a transportation network company's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the transportation network company shall cause its insurer to issue the payment directly to the business repairing the vehicle, or jointly to the owner of the vehicle and the primary lienholder on the covered vehicle.

(Source: P.A. 98-1173, eff. 6-1-15; 99-56, eff. 7-16-15.)

(625 ILCS 57/20)

(Section scheduled to be repealed on June 1, 2020)

Sec. 20. Non-discrimination.

(a) The TNC shall adopt and notify TNC drivers of a policy of non-discrimination on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity with respect to passengers and potential passengers.

(b) TNC drivers shall comply with all applicable laws regarding non-discrimination against passengers or potential passengers on the basis of destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity.

(c) TNC drivers shall comply with all applicable laws relating to accommodation of service animals.

(d) A TNC shall not impose additional charges for providing services to persons with physical disabilities because of those disabilities.

(e) A TNC shall provide passengers an opportunity to indicate whether they require a wheelchair accessible vehicle. If a TNC cannot arrange wheelchair-accessible TNC service in any instance, it shall direct the passenger to an alternate provider of wheelchair-accessible service, if available.

(f) If a unit of local government has requirements for licensed chauffeurs not to discriminate in providing service in under-served areas, TNC drivers providing prearranged rides participating in TNC services within that unit of local government shall be subject to the same non-discrimination requirements for providing service in under-served areas.

(Source: P.A. 98-1173, eff. 6-1-15.)

(625 ILCS 57/25)

(Section scheduled to be repealed on June 1, 2020)

Sec. 25. Safety.

(a) The TNC shall implement a zero tolerance policy on the use of drugs or alcohol while a TNC driver is engaged in a prearranged ride providing TNC services or is logged into the TNC's digital network and is able to receive requests, but is not engaged in a prearranged ride providing TNC services.

(b) The TNC shall provide notice of the zero tolerance policy on its website, as well as procedures to report a complaint about a driver with whom a passenger was matched and whom the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the trip.

(c) Upon receipt of a passenger's complaint alleging a violation of the zero tolerance policy, the TNC shall immediately suspend the TNC driver's access to the TNC's digital network platform, and shall conduct an investigation into the reported incident. The suspension shall last the duration of the investigation.

(d) The TNC shall require that any motor vehicle that a TNC driver will use to provide prearranged rides TNC services meets vehicle safety and emissions requirements for a private motor vehicle in this State.

(e) TNCs or TNC drivers are not common carriers, contract carriers or motor carriers, as defined by applicable State law, nor do they provide taxicab or for-hire vehicle service.

(Source: P.A. 98-1173, eff. 6-1-15.)

(625 ILCS 57/30)

(Section scheduled to be repealed on June 1, 2020)

Sec. 30. Operational.

(a) A TNC may charge a fare for the services provided to passengers; provided that, if a fare is charged, the TNC shall disclose to passengers the fare calculation method on its website or within the software application service.

(b) The TNC shall provide passengers with the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC driver's personal vehicle.

(c) The TNC's software application or website shall display a picture of the TNC driver, and the license plate number of the motor vehicle utilized for providing the prearranged ride TNC service before the passenger enters the TNC driver's vehicle.

(d) Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the passenger that lists:

(1) the origin and destination of the trip;

(2) the total time and distance of the trip; and

(3) an itemization of the total fare paid, if any.

(e) Dispatches for prearranged rides TNC services shall be made only to eligible TNC drivers under Section 15 of this Act who are properly licensed under State law and local ordinances addressing these drivers if applicable.

(f) A taxicab may accept a request for transportation received through a TNC's digital network or software application service, and may charge a fare for those services that is similar to those charged by a TNC.

(Source: P.A. 98-1173, eff. 6-1-15.)

(625 ILCS 57/32)

(Section scheduled to be repealed on June 1, 2020)

Sec. 32. Preemption. A unit of local government, whether or not it is a home rule unit, may not regulate transportation network companies, transportation network company drivers, or prearranged rides transportation network company services in a manner that is less restrictive than the regulation by the State under this Act. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(Source: P.A. 99-56, eff. 7-16-15.)

Section 99. Effective date. This Act takes effect upon becoming law.