Arkansas Code of 1987 (2023) › Title 27 - TRANSPORTATION (§§ 27-1-101 — 27-117-105) › Subtitle 2 - MOTOR VEHICLE REGISTRATION AND LICENSING (§§ 27-13-101 — 27-25-113) › Chapter 25 - PEER-TO-PEER CAR-SHARING PROGRAM ACT (§§ 27-25-101 — 27-25-113) › Section 27-25-103 - Insurance coverage during car-sharing period - Scope

(a)
Except as provided in subsection (b) of this section, a peer-to-peer car-sharing program assumes liability for a shared-vehicle owner for bodily injury or property damage to third parties, uninsured and underinsured motorist, or personal injury protection losses during the car-sharing period in an amount, as stated in the peer-to-peer car-sharing program agreement, which shall not be less than the amount stated in §
27-22-104
.
(b)
Notwithstanding the car-sharing termination time, the assumption of liability under subsection (a) of this section does not apply to a shared-vehicle owner if the shared-vehicle owner:
(1)
Makes an intentional or fraudulent material misrepresentation or omission concerning coverage of the shared vehicle to the peer-to-peer car-sharing program before the car-sharing period in which the loss occurred; or
(2)
Acts in concert with a shared-vehicle driver who fails to return the shared vehicle under the terms of the peer-to-peer car-sharing program agreement.
(c)
Notwithstanding the car-sharing termination time, the assumption of liability under subsection (a) of this section applies to bodily injury, property damage, uninsured and underinsured motorist coverage, or personal injury protection losses suffered by damaged third parties as required in §
27-22-104
.
(d)
The peer-to-peer car-sharing program shall ensure that during each car-sharing period, a shared-vehicle owner and a shared-vehicle driver are insured under a motor vehicle liability insurance policy that:
(1)
Provides insurance coverage in amounts no less than the minimum coverage required in §
27-22-104
; and
(2)
Either:
(A)
Recognizes that the shared vehicle insured under the motor vehicle liability insurance policy is made available and used through a peer-to-peer car-sharing program; or
(B)
Does not exclude the use of a shared vehicle by a shared-vehicle driver.
(e)
The insurance requirement described in subsection (d) of this section may be satisfied by motor vehicle liability insurance maintained by:
(1)
A shared-vehicle owner;
(2)
A shared-vehicle driver;
(3)
A peer-to-peer car-sharing program; or
(4)
Any combination of the persons or entities described in subdivisions (e)(1)-(3) of this section.
(f)
Except as otherwise provided in this section:
(1)
The insurance described in subsection (e) of this section that is used to satisfy the insurance requirement of subsection (d) of this section shall be the primary insurance policy during each car-sharing period; and
(2)
If a claim occurs in another state with minimum financial responsibility limits higher than the minimum coverage required in §
27-22-104
during the car-sharing period, the coverage maintained under subsection (e) of this section shall satisfy the difference in minimum coverage amounts, up to the applicable policy limits.
(g)
An insurer or a peer-to-peer car-sharing program providing coverage under subsections (d) and (e) of this section shall assume primary liability for a claim if a dispute exists as to:
(1)
Who was in control of the shared vehicle at the time of the loss and a peer-to-peer car-sharing program does not have available, did not retain, or fails to provide the information required by §
27-25-105
; or
(2)
Whether the shared vehicle was returned to the alternatively agreed-upon location.
(h)
If motor vehicle liability insurance maintained by a shared-vehicle owner or a shared-vehicle driver according to subsection (e) of this section has lapsed or does not provide the coverage required by subsection (d) of this section, then:
(1)
Insurance maintained by a peer-to-peer car-sharing program shall provide the coverage required in subsection (d) of this section beginning with the first one dollar ($1.00) of a claim; and
(2)
Except under circumstances described in subsection (b) of this section, a peer-to-peer car-sharing program has the duty to defend a claim.
(i)
Coverage under a motor vehicle liability insurance policy maintained by a peer-to-peer car-sharing program is not dependent on:
(1)
Another insurer first denying a claim; or
(2)
The requirement that a claim first be denied under a motor vehicle liability insurance policy.
(j)
This section does not limit the:
(1)
Liability of a peer-to-peer car-sharing program for any act or omission of a peer-to-peer car-sharing program itself that results in injury to a person as a result of the use of a shared vehicle through a peer-to-peer car-sharing program; or
(2)
Ability of a peer-to-peer car-sharing program to, by contract, seek indemnification from a shared-vehicle owner or a shared-vehicle driver for economic loss sustained by a peer-to-peer car-sharing program resulting from a breach of the terms and conditions of the peer-to-peer car-sharing program agreement.
(k)
This chapter is intended to govern the intersection of peer-to-peer car services and the state-regulated business of insurance.
(l)
This chapter does not 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,§ 3, eff. 8/1/2023.