Relating to peer-to-peer car sharing programs

“Shared vehicle driver” is defined in the bill. §30106. The bill requires a program to ensure that a motor vehicle liability policy (liability policy) is in effect during each car sharing period, and the policy may be maintained by the owner, the driver, the program, or any combination of the three. “Motor vehicle liability policy” is defined in the bill. The liability policy must either recognize that the shared vehicle will be made available and used through a program, or not expressly exclude the use of the vehicle as a shared vehicle. The liability policy shall be primary during each car sharing period and if during the car sharing period a claim occurs in another state that requires minimum financial responsibility limits higher than required by the bill, the coverage shall satisfy the difference in the required minimum coverage amounts, up to the policy limit. The insurer or program providing coverage under a liability policy assumes primary liability for a claim under the policy in the circumstances described in the bill. If, at the time of a claim, the liability policy maintained by the owner or the driver has lapsed or does not provide coverage, the liability policy maintained by the program shall provide the necessary coverage for the claim, and the program shall defend a claim under the program’s liability policy. The bill creates an insurable interest for a program in a shared vehicle during the car sharing period. A program may maintain as the named insured one or more liability policies that provide coverage for liabilities assumed by the program under a car sharing agreement, liability of the owner or the driver, or any damage to, or loss of, a shared vehicle. Coverage under a policy maintained by a program shall not be dependent on another insurer or policy first denying a claim.4 shall not be construed to create liability on a program to maintain a liability insurance policy, to limit the liability of a program for an act or omission that results in injury to a person, or to limit the ability of a program to contractually seek indemnification from an owner or a driver. A liability policy may exclude coverage, and the duty to defend or indemnify an owner, for any claims arising out of a program, including liability coverage for bodily injury and property damage, personal accident coverage, uninsured and underinsured motorist coverage, medical payments coverage, comprehensive physical damage coverage, and collision physical damage coverage. The bill shall not be construed to invalidate, limit, or restrict an exclusion in a liability policy, including an exclusion of coverage for vehicles made available for rent, sharing, hire, or any business use. The bill shall not be construed to invalidate, limit, or restrict an insurance carrier’s ability to underwrite an insurance policy or to cancel or not to renew an insurance policy. A liability policy that defends or indemnifies a claim made against an owner or a driver for loss or injury that occurred during a car sharing period, where the claim is excluded under the terms of the liability policy, may seek recovery against the program’s liability policy. A program shall be exclusively responsible for any equipment placed in or on a shared vehicle to monitor or facilitate the car sharing transaction, unless damage to or theft of such equipment is the fault of the shared vehicle owner. The program may seek indemnity from the shared vehicle driver for loss or damage to such equipment that occurs during the car sharing period. The bill requires an agreement to disclose to the owner and the driver (1) that the applicable liability policy does not provide a defense or indemnification for a claim asserted by the program; (2) any right of the program to seek indemnification from the owner or driver for economic loss resulting from a breach of the terms and conditions of the program; (3) that the program’s liability policy coverage of the owner and driver terminates upon the car sharing termination time; (4) that the owner’s liability policy may not cover a shared vehicle; (5) emergency telephone numbers for personnel capable of fielding roadside assistance and for customer service; and (6) the daily rate, fees, and any costs of insurance or protection packages that are charged to the owner or driver. An agreement shall also include an emergency telephone number for roadside assistance and a telephone number for other customer service inquiries. A program shall only enter into an agreement with any person who holds a driver’s license issued in this state to operate a vehicle of the class of the shared vehicle, hold a driver’s license issued by another state or country that authorizes the person to operate a vehicle of the class of the shared vehicle and who is at least the minimum age required for a resident of this state to operate a vehicle of the class of the shared vehicle, or a person who is otherwise specifically authorized by this state to drive vehicles of the class of the shared vehicle. The bill requires a program, prior to the time an owner makes a shared vehicle available for car sharing, to verify that the shared vehicle does not have any safety recalls for which repairs have not been made, and to notify the owner of the requirements to make safety repairs as detailed in the bill. The bill details additional requirements related to safety recalls. The bill requires a program to notify an owner at the time of registration, and prior to the owner making a vehicle available for car sharing, that if there are any liens against the shared vehicle the vehicle’s use through the program may violate the terms of the owner’s contract with the lienholder. The bill requires a program to collect and verify records relating to the use of a shared vehicle, including all dates and times that a shared vehicle is used, locations of a car sharing start time and car sharing termination time, fees paid by the driver, and revenues received by the owner, and to retain such records as required by the bill. Upon request, a program shall provide such information to the owner, the insurance carrier for the owner’s liability policy, or the insurance carrier for the driver’s liability policy for purposes of a claim coverage investigation, settlement, negotiation, or litigation. A program shall keep permanent records of the names and addresses of each driver and the driver’s license number and place of issuance of each driver and any other person who may operate the shared vehicle under the program agreement. The bill does not limit the liability of a program for any act or omission of the program that results in injury to a person from the use of a shared vehicle. The commissioner of insurance may adopt rules as necessary to administer the bill.