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S.F. No. 1679 - Transportation Network Company Insurance Requirements
Author: Senator Kari Dziedzic
Prepared By: Christopher B. Stang, Senate Counsel (651/296-0539)
Date: April 9, 2015


Section 1, subdivision 1 provides definitions for purposes of the bill. A “transportation network company” or “TNC” is a firm that uses a digital network to connect riders to drivers who provide prearranged rides.

Subdivision 2 requires a TNC driver or the TNC on the driver’s behalf to maintain primary vehicle insurance that meets the requirements of this subdivision. Coverage requirements while the driver is logged on to the digital network but not engaged in a prearranged ride include:

  • coverage for injury and property damage in an amount not less than $50,000 for death or bodily injury to one person, $100,000 for two or more persons, and $30,000 for injury to property;
  • basic economic loss benefits under the no-fault law; and
  • uninsured and underinsured motorist coverage.

When engaged in a prearranged ride, the required liability limit rises to $1,500,000.  If insurance maintained by the driver has lapsed, the TNC is required to provide the coverage on a primary basis. Coverage maintained by the TNC must not require any other insurance to first deny a claim to trigger coverage. A driver must carry proof of coverage at all times. A TNC must disclose whether a driver was logged on to the digital network or on a prearranged ride at the time of an accident.

Subdivision 3 requires the TNC to disclose to drivers before they can accept prearranged rides:

  • the insurance that the TNC provides;
  • that the driver’s own insurance may not provide any coverage; and
  • that using a vehicle with a lien against it may violate the driver’s contract with the lienholder.

Subdivision 4 provides that insurers may exclude coverage under an auto policy while the driver is logged on to a digital network or provides prearranged rides. An insurer may provide this coverage if it so chooses by contract or endorsement. Requires the TNC and relevant insurers to cooperate with other insurers involved in a claims coverage investigation.

Section 2 provides for subrogation rights.

Section 3 provides for a July 1, 2015 effective date.



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