An Act To Clarify Insurance Requirements under the Peer-to-peer Car Sharing Insurance Act
Maine Legislature, Session 129, LD 2027
Committee: Health Coverage, Insurance and Financial Services
Sponsors: TEPLER, FOLEY
Amends: 24-A MRSA §7403, 24-A MRSA §7404, 24-A MRSA §7405

Legislative Document
No. 2027
S.P. 717
In Senate, January 14, 2020
An Act To Clarify Insurance Requirements under the Peer-to-peer 
Car Sharing Insurance Act
(EMERGENCY)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator SANBORN, H. of Cumberland.
Cosponsored by Representative TEPLER of Topsham and
Senator: FOLEY of York.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, current law requires a peer-to-peer car sharing program provider to 
provide property and casualty coverage, including comprehensive and collision 
protection, for physical loss to the shared vehicle during the time that the vehicle is in the 
custody of the provider or shared vehicle driver in an amount not less than the 
replacement cost of the shared vehicle beginning June 1, 2020; and
Whereas, this legislation allows a peer-to-peer car sharing program provider to 
provide satisfactory evidence of solvency and a financial ability to pay in lieu of property 
and casualty coverage, including comprehensive and collision protection; and
Whereas, this legislation must be enacted before June 1, 2020 so that both options 
are available to a peer-to-peer car sharing program provider; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §7403, sub-§4, ¶A, as enacted by PL 2019, c. 367, §1, is 
amended by amending subparagraph (2) to read:
(2)  Beginning June 1, 2020, property and casualty coverage, including 
comprehensive and collision protection, for physical loss to the shared vehicle 
during the time that the vehicle is in the custody of the provider or shared vehicle 
driver in an amount not less than the replacement cost of the shared vehicle.  In 
lieu of property and casualty coverage, the provider may submit satisfactory 
evidence to the superintendent of solvency and financial ability to provide 
payment for physical loss to the shared vehicle as required in this subparagraph;
Sec. 2.  24-A MRSA §7404, sub-§1, as enacted by PL 2019, c. 367, §1, is 
amended to read:
1.  Provider liable as if owner.  Notwithstanding any provision of law to the 
contrary or any provision in a motor vehicle insurance policy, in the event a loss or injury 
occurs during a car sharing period or while a motor vehicle is under the control of a 
provider, the provider is deemed the owner of the motor vehicle under Title 29-A, section 
1652 and any provision of law that may impose liability upon the owner of a motor 
vehicle solely based on ownership of the motor vehicle.  The provider retains liability 
regardless of any lapse in the provider's policy or whether that liability is covered under 
the provider's policy or any other insurance policy under which the provider is insured.  
The liability of a provider under this subsection may not exceed 3 times the minimum 
requirements for liability in Title 29-A, section 1605.
Sec. 3.  24-A MRSA §7404, sub-§3 is enacted to read:
3.  Fraud or material misrepresentation.  The assumption of liability in subsection 
and the insurer's duty to defend and indemnify required in subsection 2 do not apply to 
a provider when a shared vehicle owner or shared vehicle driver commits intentional 
fraud or makes a material misrepresentation to the provider and the loss or injury during a 
car sharing period or while a motor vehicle is under the control of the provider resulted 
from the fraud or material misrepresentation.
Sec. 4.  24-A MRSA §7405, sub-§3, as enacted by PL 2019, c. 367, §1, is 
amended to read:
3.  Filing of rates and forms.  For the purposes of any insurance policy written in 
accordance with this section, the insurer shall file rates and forms with the superintendent 
for approval.  For the purposes of any surplus lines insurance policy, the insurer shall file 
any information required by the superintendent necessary to determine compliance with 
this section.
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved.
SUMMARY
This bill makes the following changes to clarify the Peer-to-peer Car Sharing 
Insurance Act.
1.  It allows a peer-to-peer car sharing program provider to provide satisfactory 
evidence of solvency and a financial ability to pay in lieu of comprehensive and collision 
insurance coverage.
2.  It limits the liability of a peer-to-peer car sharing program provider for a loss or 
injury during a car sharing period or while a motor vehicle is under the control of a 
provider to no more than 3 times the State's minimum financial responsibility 
requirements.
3.  It provides that a peer-to-peer car sharing program provider is not liable for a loss 
or injury during a car sharing period or while a motor vehicle is under the control of a 
provider and the insurer of such a provider does not have a duty to defend and indemnify 
a shared vehicle owner or shared vehicle driver when a shared vehicle owner or shared 
vehicle driver commits intentional fraud or makes a material misrepresentation to a 
provider and the loss or injury resulted from the fraud or material misrepresentation.
4.  It clarifies that surplus lines insurance may be used.