Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 89 - CASUALTY INSURANCE (§§ 23-89-101 — 23-89-518) › Subchapter 2 - AUTOMOBILE LIABILITY INSURANCE GENERALLY (§§ 23-89-201 — 23-89-217) › Section 23-89-217 - Insurance coverage for peer-to-peer car-sharing programs - Scope - Definitions

(a)
As used in this section:
(1)
"Car-sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location designated in a peer-to-peer car-sharing program agreement of the car-sharing start time, if applicable, as documented by a peer-to-peer car-sharing program agreement;
(2)
"Car-sharing period" means a period of time:
(A)
That commences with the car-sharing delivery period and ends at the car-sharing termination time; or
(B)
If there is no car-sharing delivery period, that commences with the car-sharing start time and ends at the car-sharing termination time;
(3)
"Car-sharing start time" means the time when a shared vehicle becomes subject to the control of the shared-vehicle driver at or after the time the reservation of a shared vehicle is scheduled to begin as documented in the records of a peer-to-peer car-sharing program;
(4)
"Car-sharing termination time" means the earliest of the following events:
(A)
The expiration of the agreed-upon period of time established for the use of a shared vehicle according to the terms of the peer-to-peer car-sharing program agreement if the shared vehicle is delivered to the location agreed to in the peer-to-peer car-sharing program agreement;
(B)
The return of the shared vehicle to an alternative location agreed upon by the shared-vehicle owner and the shared-vehicle driver communicated through a peer-to-peer car-sharing program agreement, which alternatively-agreed-upon-location shall be incorporated into the peer-to-peer car-sharing program agreement; or
(C)
The taking of possession and control of the shared vehicle by the shared-vehicle owner or an authorized designee of the shared-vehicle owner;
(5)
(A)
"Peer-to-peer car sharing" means the authorized use of a motor vehicle by an individual other than the owner of the motor vehicle through a peer-to-peer car-sharing program.
(B)
"Peer-to-peer car sharing" does not mean the:
(i)
Services offered by a rental company that provides a rental vehicle under a rental agreement under §
23-64-202
;
(ii)
Services provided under the Transportation Network Company Services Act, §
23-13-701
et seq.; or
(iii)
Renting of a motor vehicle to another under §
27-16-605
;
(6)
(A)
"Peer-to-peer car-sharing program" means a business platform that connects an owner of a motor vehicle with a driver to enable the sharing of a motor vehicle for financial consideration.
(B)
"Peer-to-peer car-sharing program" does not mean:
(i)
A rental company as defined in §
23-64-202
;
(ii)
A person or entity renting a motor vehicle to another person or entity under §
27-16-605
;
(iii)
A provider who is solely providing hardware or software as a service to a person or entity that is not effectuating payment of financial consideration for use of a shared vehicle; or
(iv)
Service provided under the Transportation Network Company Services Act, §
23-13-701
et seq.;
(7)
(A)
"Peer-to-peer car-sharing program agreement" means the terms and conditions applicable to a shared-vehicle owner and a shared-vehicle driver that govern the use of a shared vehicle through a peer-to-peer car-sharing program.
(B)
"Peer-to-peer car-sharing program agreement" does not mean:
(i)
A rental agreement as defined in §
23-64-202
; or
(ii)
Any agreement for the rental or use of a vehicle with a person or entity engaged in the business of renting a motor vehicle without a driver;
(8)
(A)
"Shared vehicle" means a motor vehicle that is available for sharing through a peer-to-peer car-sharing program.
(B)
"Shared vehicle" does not mean a:
(i)
Vehicle or rental vehicle as defined in §
23-64-202
; or
(ii)
Motor vehicle that is rented under §
27-16-605
;
(9)
"Shared-vehicle driver" means an individual who is authorized to drive a shared vehicle by a shared-vehicle owner under a peer-to-peer car-sharing program agreement; and
(10)
(A)
"Shared-vehicle owner" means the registered owner, or a person or entity designated by the registered owner, of a motor vehicle made available for sharing to a shared-vehicle driver through a peer-to-peer car-sharing program.
(B)
"Shared-vehicle owner" does not mean a:
(i)
Rental company as defined in §
23-64-202
;
(ii)
Person or entity renting a motor vehicle to another under §
27-16-605
;
(iii)
Provider who is solely providing hardware or software as a service to a person or entity that is not effectuating payment of financial consideration for use of a shared vehicle; or
(iv)
Service provided under the Transportation Network Company Services Act, §
23-13-701
et seq.
(b)
(1)
An insurer that is licensed to write motor vehicle liability insurance in this state may exclude coverage and deny the duty to defend or indemnify for a claim under a shared-vehicle owner's motor vehicle liability insurance policy.
(2)
(A)
The right to exclude all coverage under subdivision (b)(1) of this section may apply to any coverage included in a shared-vehicle owner's motor vehicle liability insurance policy, including without limitation:
(i)
Liability coverage for bodily injury and property damage;
(ii)
Uninsured and underinsured motorist coverage;
(iii)
Medical payments coverage;
(iv)
Comprehensive physical damage coverage; and
(v)
Collision physical damage coverage.
(B)
The exclusions in subdivision (b)(2)(A) of this section apply notwithstanding any requirement of the:
(i)
Insurance laws of this state; or
(ii)
Motor Vehicle Safety Responsibility Act, §
27-19-101
et seq.
(c)
This section and the Motor Vehicle Safety Responsibility Act, §
27-19-101
et seq., do not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy, including without limitation a policy in use or approved for use in this state before August 1, 2023, that excludes coverage for a motor vehicle that is rented or that is engaged in commercial use.
(d)
This section and the Peer-to-Peer Car-Sharing Program Act, §
27-25-101
et seq., do not invalidate, limit, or restrict an insurer's ability under existing law to:
(1)
Underwrite any insurance policy; or
(2)
Cancel or decline to renew any insurance policy.
(e)
(1)
Notwithstanding any other law to the contrary, a peer-to-peer car-sharing program has an insurable interest in a shared vehicle during a car-sharing period.
(2)
A peer-to-peer car-sharing program may own and maintain as the named insured one (1) or more policies of motor vehicle liability insurance that provides coverage for any:
(A)
Liability assumed by a peer-to-peer car-sharing program under a peer-to-peer car-sharing program agreement;
(B)
Liability of a shared-vehicle owner;
(C)
Liability of a shared-vehicle driver; or
(D)
Damage or loss to a shared vehicle.
(f)
This section does not impose liability on a peer-to-peer car-sharing program to maintain insurance coverage beyond the extent mandated by §
27-25-103
.
(g)
This section is intended to govern the intersection of peer-to-peer car services and the state-regulated business of insurance.
(h)
This section shall not be construed to extend beyond insurance or have any implications for other Arkansas laws, including without limitation laws related to motor vehicle registration, airport regulation, or taxation.
Added by Act 2023, No. 686,§ 2, eff. 8/1/2023.