Microsoft Word - 0074.docx

- i -

House Engrossed

insurance coverage requirements; transportation companies.

State of Arizona

House of Representatives

Fifty-sixth Legislature

Second Regular Session

2024

CHAPTER 74

HOUSE BILL 2729

AN ACT

AMENDING SECTIONS 28-4038 AND 28-4039, ARIZONA REVISED STATUTES; RELATING

TO TRANSPORTATION FINANCIAL RESPONSIBILITY.

(TEXT OF BILL BEGINS ON NEXT PAGE)

H.B. 2729

- 1 -

Be it enacted by the Legislature of the State of Arizona: 1

Section 1. Section 28-4038, Arizona Revised Statutes, is amended to 2

28-4038. Transportation network services; financial

responsibility requirements; survey

A. For a transportation network company that requires a 6

transportation network company driver to accept rides that are booked and 7

paid for exclusively through the transportation network company's digital 8

network or software application and during the time in which the 9

transportation network company driver is logged in to the transportation 10

network company's digital network or software application to be a driver, 11

but is not in the act of providing transportation network services, the 12

transportation network company driver or the transportation network 13

company, or both, shall provide primary motor vehicle liability insurance 14

coverage in the amount of $25,000 because of bodily injury to or death of 15

one person in any one accident, subject to the limit for one person, 16

$50,000 because of bodily injury to or death of two or more persons in any 17

one accident and $20,000 because of injury to or destruction of property 18

of others in any one accident. Coverage shall be maintained through any 19

of the following: 20

1. A private passenger motor vehicle policy maintained by the 21

transportation network company driver that expressly provides liability 22

coverage while the driver is logged in to the transportation network 23

company's digital network or software application to be a driver. 24

2. A motor vehicle liability policy maintained by the 25

transportation network company. 26

3. A commercial motor vehicle liability policy. 27

B. For a transportation network company that requires a 28

transportation network company driver to accept rides that are booked and 29

paid for exclusively through the transportation network company's digital 30

network or software application and during the time in which the 31

transportation network company driver is providing transportation network 32

services, the transportation network company driver or the transportation 33

network company, or both, shall maintain the following insurance 34

coverages: 35

1. Primary commercial motor vehicle liability insurance that covers 36

the transportation network company driver's provision of transportation 37

network services in a minimum amount of $250,000 per incident, EXCEPT THAT 38

THE MINIMUM AMOUNT SHALL BE $1,000,000 PER INCIDENT WHEN A PASSENGER TO 39

WHOM THE TRANSPORTATION NETWORK COMPANY DRIVER IS PROVIDING TRANSPORTATION 40

NETWORK SERVICES IS OCCUPYING THE TRANSPORTATION NETWORK COMPANY VEHICLE. 41

2. PRIMARY commercial uninsured motorist coverage in a minimum 42

amount of $250,000 EITHER OF THE FOLLOWING, WHICHEVER IS GREATER:

(a) $25,000 PER PERSON AND $75,000 per incident. 44

H.B. 2729

- 2 -

(b) THE MINIMUM LIABILITY LIMITS FOR BODILY INJURY OR DEATH 1

PRESCRIBED IN SECTION 28-4009. 2

C. Unless an insurance policy expressly provides coverage or 3

contains an amendment or endorsement that expressly provides coverage, the 4

transportation network company driver's insurance policy and the motor 5

vehicle owner's personal motor vehicle insurance policy shall not be 6

required to provide coverage for the transportation network company 7

vehicle, the transportation network company driver, the motor vehicle 8

owner or any third party while a transportation network company driver is 9

logged in to a transportation network company's digital network or 10

software application to be a driver or is providing transportation network 11

services. 12

D. Notwithstanding subsection C of this section, an insurer may 13

offer, for the period during which a transportation network company driver 14

is logged in to a transportation network company's digital network or 15

software application to be a driver or is providing transportation network 16

services, one of the following: 17

1. A motor vehicle liability insurance policy expressly providing 18

such coverage. 19

2. An amendment or endorsement to an existing motor vehicle 20

liability insurance policy specifically providing such coverage. 21

E. An insurance policy required by this section is deemed to 22

satisfy the financial responsibility requirements for a motor vehicle 23

insurance policy under this title. 24

F. A transportation network company driver shall carry proof of 25

insurance in the transportation network company vehicle at all times while 26

logged in to a transportation network company's digital network or 27

software application to be a driver or is providing transportation network 28

services. If an accident occurs involving a transportation network 29

company vehicle, the transportation network company driver shall provide 30

proof of insurance to the parties involved in the accident at the time of 31

the accident. The transportation network company driver shall also notify 32

the transportation network company of the accident. 33

G. In a claims coverage investigation, transportation network 34

companies and any insurer providing coverage as prescribed in this section 35

shall fully cooperate in the exchange of information, including the 36

precise times that a transportation network company driver logged on and 37

off of the transportation network company's digital network or software 38

application in the twenty-four-hour period immediately preceding the 39

accident, and shall disclose to each other a clear description of the 40

coverage, exclusions and limits provided under any insurance policy each 41

party issued or maintained. 42

H. This section and section 28-4009 do not create an obligation for 43

an insurer that issues coverage to which section 20-1631 applies to offer, 44

provide or issue a motor vehicle liability insurance policy or an 45

H.B. 2729

- 3 -

endorsement or amendment that includes coverage for any liability arising 1

while a transportation network company driver is logged in to the 2

transportation network company's digital network or software application 3

to be a driver or is providing transportation network services. 4

I. An insurance policy required by this section may be placed with 5

an insurer authorized to transact insurance in this state pursuant to 6

title 20, chapter 2, article 1 or a surplus lines insurer pursuant to 7

title 20, chapter 2, article 5. 8

J. The department of insurance and financial institutions, as part 9

of its annual survey of insurance companies, may request information from 10

any property and casualty insurer authorized to write private passenger 11

motor vehicle coverage in this state, including information regarding: 12

1. Whether the insurer offers for purchase a policy or an 13

endorsement or amendment that covers transportation network company 14

drivers while the driver is logged in to a transportation network 15

company's digital network or software application to be a driver or is 16

providing transportation network services. 17

2. The number of those policies, endorsements or amendments that 18

have been purchased during the reporting period. 19

3. The number of those policies, endorsements or amendments that 20

have been canceled during the reporting period. 21

Sec. 2. Section 28-4039, Arizona Revised Statutes, is amended to 22

28-4039. Taxi, livery vehicle or limousine; financial

responsibility

A. Motor vehicle liability insurance for a taxi, livery vehicle or 26

limousine may be maintained as follows: 27

1. During the time in which the taxi, livery vehicle or limousine 28

driver is available to provide passenger transportation, but has not 29

accepted a ride request and is not in the act of providing passenger 30

transportation, primary commercial motor vehicle liability insurance 31

coverage in the amount of twenty-five thousand dollars $25,000 because of

bodily injury to or death of any one person in any one accident, subject 33

to the limit for one person, fifty thousand dollars $50,000 because of

bodily injury to or death of two or more persons in any one accident and 35

twenty thousand dollars $20,000 because of injury to or destruction of

property of others in any one accident. This policy may be maintained by 37

either the driver or the company. 38

2. After the taxi, livery vehicle or limousine driver has accepted 39

a ride request through any communication and during the time in which the 40

taxi, livery vehicle or limousine driver is providing passenger 41

transportation, the taxi, livery vehicle or limousine driver or the taxi, 42

livery vehicle or limousine company shall maintain the following insurance 43

coverage: 44

H.B. 2729

- 4 -

(a) Primary commercial motor vehicle liability insurance in a 1

minimum amount of two hundred fifty thousand dollars $250,000 per

incident. 3

(b) PRIMARY commercial uninsured motorist coverage in a minimum 4

amount of two hundred fifty thousand dollars EITHER OF THE FOLLOWING,

WHICHEVER IS GREATER: 6

(i) $25,000 PER PERSON AND $75,000 per incident. 7

(ii) THE MINIMUM LIABILITY AMOUNTS FOR BODILY INJURY OR DEATH 8

PRESCRIBED IN SECTION 28-4009. 9

B. A taxi, livery vehicle or limousine driver shall carry proof of 10

insurance in the vehicle at all times while providing transportation 11

services. If an accident occurs involving a taxi, livery vehicle or 12

limousine, the taxi, livery vehicle or limousine driver shall provide 13

proof of insurance to the parties involved in the accident at the time of 14

the accident. The taxi, livery vehicle or limousine driver shall also 15

notify the taxi, livery vehicle or limousine company of the accident. 16

C. In a claims coverage investigation, a taxi, livery vehicle or 17

limousine company and any insurer providing coverage as prescribed in this 18

section shall fully cooperate in the exchange of information and shall 19

disclose to each other a clear description of the coverage, exclusions and 20

limits provided under any insurance policy that each party issued or 21

maintained. 22

APPROVED BY THE GOVERNOR APRIL 2, 2024.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 2, 2024.