Section 1, subdivision 1 provides definitions for purposes of the bill. A “transportation network company” or “TNC” is a firm that provides prearranged transportation services for compensation using an online-enabled application (“app”) to connect passengers with drivers using a personal vehicle.

Subdivision 2 requires the TNC to disclose in writing to participating drivers the plan of transportation network responsibility, the limits of liability that the TNC provides and that the driver’s personal insurance may not provide coverage in connection with transportation services provided through the TNC’s app.

Subdivision 3 requires the TNC and a participating driver, individually or in combination, to maintain a plan of transportation network financial responsibility that meets the requirements of this subdivision. Coverages required from when a driver accepts a ride request to when the driver completes the transaction or the ride is complete, whichever is later, are specified. If the plan of transportation network financial responsibility is satisfied by the driver, the TNC must verify that the plan is maintained by the driver and is specifically written to cover the driver’s use of a vehicle in connection with services provided through the TNC’s app. Coverages required from when the driver logs on to the TNC's app until the driver accepts a request to transport a passenger, and from the moment a ride is complete until the driver accepts another ride request or logs off, are specified. Transportation network financial responsibility must not require any other insurance to first deny a claim to trigger coverage. If the driver’s coverage has lapsed, the TNC is required to provide the transportation network financial responsibility on a primary basis.

Subdivision 4 states that this bill does not require a driver’s insurance to provide coverage of any kind during the specified times. During the specified times, no coverage or duty to defend is provided unless the driver's policy expressly provides for transportation network financial responsibility or contains an amendment or endorsement to that effect. An insurer is allowed to provide transportation network financial responsibility coverage, but only expressly.

Subdivision 5 requires the TNC, driver, and its insurer to cooperate with other insurers involved in the claims coverage investigation.

Subdivision 6 requires a driver to carry proof of transportation network financial responsibility at all times during use of the vehicle in connection with the TNC's app.

Subdivision 7 provides that this chapter exclusively determines the obligations of financial responsibility for the TNC and drivers.

Section 2 provides for subrogation rights.

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