2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 53 - MUNICIPALITIES GENERALLY › Chapter 57A - Transportation Network Companies › Section 57A07 - Insurance requirements

§ 57A07. Insurance requirements.
(a) General rule.--
A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport passengers for compensation.
(b) While not engaged with a prearranged ride.--
The following automobile insurance requirements shall apply to the transportation network company driver or the transportation network company on the driver's behalf while a participating transportation network company driver is logged onto the digital network and is available to receive transportation requests but is not engaged in a prearranged ride:
(1) Primary automobile liability insurance in the amount of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident and $25,000 for property damage.
(2) First-party medical benefits as required under 75 Pa.C.S. § 1711 (relating to required benefits), including $25,000 for pedestrians and $5,000 for a driver.
(c) While engaged with a prearranged ride.--
The following automobile insurance requirements shall apply while a transportation network company driver is engaged in a prearranged ride:
(1) Primary automobile liability insurance that provides at least $500,000 for death, bodily injury and property damage.
(2) First-party medical benefits as required by 75 Pa.C.S. § 1711 (relating to required benefits) on a per-incident basis for incidents involving a transportation network company driver's operation of a personal vehicle while engaged in a prearranged ride, including $25,000 for passengers and pedestrians and $5,000 for a driver.
(d) Satisfaction of coverage requirements.--
The coverage requirements under this section may be satisfied by any of the following:
(1) automobile insurance maintained by the transportation network company driver;
(2) automobile insurance maintained by the transportation network company; or
(3) any combination of paragraphs (1) and (2).
(e) Lapsed or inadequate insurance.--
If the insurance required under subsection (b) or (c) is maintained by a driver and has lapsed or does not provide the required coverage, insurance maintained by a transportation network company shall provide the coverage required by this section beginning with the first dollar of a claim, and the transportation network company's insurer shall have the duty to defend such claim.
(f) Primary insurance.--
Coverage under an automobile insurance policy maintained under this section shall be primary and not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.
(g) Certificate of insurance.--
A certificate of insurance must be filed by the insurance carrier evidencing the insurance required under this section and must be in a form promulgated by the authority.
(h) Deposit of certificate of insurance.--
Insurance required under this subsection shall be placed with either an insurer that has obtained a certificate of authority under section 208 of the act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921, or a surplus lines insurer eligible under section 1605 of the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921.
(i) Financial responsibility requirement.--
Insurance satisfying the requirements of this section shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under 75 Pa.C.S. Ch. 17 (relating to financial responsibility).
(j) Proof of insurance coverage required.--
A transportation network company driver shall carry proof of coverage satisfying subsections (b) and (c) when the driver uses a vehicle in connection with a digital network. In the event of an accident, a transportation network company driver shall provide the proof of insurance coverage to the directly interested parties, automobile insurers and investigating police officers under 75 Pa.C.S. § 1786 (relating to required financial responsibility). A transportation network company driver shall disclose to directly interested parties, automobile insurers and investigating police officers whether the driver was logged onto the digital network or on a prearranged ride at the time of an accident.
(k) Responsibility of transportation network company.--
The transportation network company shall be responsible to ensure that automobile insurance coverage required to be carried by the transportation network company driver under this section is in force prior to permitting a transportation network company driver to provide transportation network service.
(l) Automobile insurance provisions.--
The following shall apply:
(1) Insurers that write automobile insurance in this Commonwealth may exclude any and all coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a driver is logged onto a digital network or while a driver provides a prearranged ride. The right to exclude all coverage may apply to any coverage included in an automobile insurance policy, including, but not limited to:
(i) liability coverage for bodily injury and property damage;
(ii) uninsured and underinsured motorist coverage;
(iii) medical payments coverage;
(iv) comprehensive physical damage coverage;
(v) collision physical damage coverage; and
(vi) first-party medical benefits required under subsection (b).
(2) Notwithstanding any requirement under 75 Pa.C.S. Ch. 17, exclusions under subsection (b) shall apply. Nothing in this section shall require that a personal automobile insurance policy provide coverage while the driver is logged on to a digital network, while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to transport passengers for compensation. Nothing in this subsection shall be deemed to preclude an insurer from providing coverage for the personal vehicle if the insurer chooses to do so by contract or endorsement.
(3) Automobile insurers that exclude the coverage described in paragraph (1) shall have no duty to defend or indemnify any claim expressly excluded under the coverage. Nothing in this section shall be deemed to invalidate or limit an exclusion contained in a personal insurance policy, including any policy in use or approved for use in this Commonwealth prior to the enactment of this section, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.
(4) An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of subsection (a) at the time of loss.
(5) In a claims coverage investigation, transportation network companies and any insurer potentially providing coverage under this section shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver, including the precise times that a transportation network company driver logged on and logged off of the digital network in the 12-hour period immediately preceding and in the 12-hour period immediately following the accident and disclose a clear description of the coverage, exclusions and limits provided under any automobile insurance maintained under this section.
(m) Waiver of liability.--
The following shall apply:
(1) A transportation network company or transportation network company driver may not request or require a passenger to sign a waiver of potential liability for a loss of personal property or injury.
(2) A transportation network company may not request or require a transportation network company driver to sign a waiver of potential liability for a loss of personal property or injury as a condition of entering into a lease agreement.
(3) For the purposes of this subsection, signing a waiver shall include requiring a prospective customer to agree to the terms and conditions required to download a digital application as a condition for obtaining transportation network services.
(n) Disclosures.--
The transportation network company shall provide the following disclosures:
(1) Insurance coverage, including the types of coverage and the limits for each coverage that the transportation network company provides while the transportation network company driver uses a vehicle in connection with a digital network.
(2) Notice that the terms of the transportation network company driver's own automobile insurance policy might not provide any coverage while the driver is logged on to the digital network and available to receive transportation requests or is engaged in a prearranged ride.
(3) Notice that if a transportation network company driver does not have the type of policy required by this section, the transportation network company will provide all required insurance.
(4) The accident protocol required under subsection (j).
(5) Notice that the driver must notify the following:
(i) The driver's auto insurance company or insurance agent that the driver will be using the vehicle to provide services under this chapter.
(ii) If the driver will not be using a vehicle owned and insured by the driver, the disclosures under this section shall be provided to the policyholder and to the owner of the vehicle.
(o) Form of disclosures.--
A disclosure under subsection (n) shall be provided in writing to all transportation network company drivers prior to the designation of an individual as a transportation network company driver. Transportation network companies shall retain written or electronic verification records of the receipt of disclosures required under this section by the transportation network company driver.
(p) Lienholder and lessor requirements.--
(1) The following shall apply:
(i) A transportation network company shall disclose the notice under this subparagraph prominently and with a separate acknowledgment of acceptance to each prospective transportation network company driver in the transportation network company's written terms of service for drivers. The disclosure shall be provided before a driver is allowed to offer prearranged rides on a transportation network company's digital network. The notice shall be as follows:
(Name of transportation network company) will provide you with a notice explaining whether it provides insurance to repair your personal vehicle if you have an accident when using your vehicle in a transportation network. If (name of transportation network company) does not provide coverage for damage to your car, your personal automobile insurance policy might not provide the coverage and you may be required to pay all costs to repair the vehicle yourself in the event of an accident unless you purchase extra insurance. If you financed the purchase of the vehicle or lease the vehicle, you must notify your lender or lessor that you will use your vehicle to provide transportation network service. Your lender or lessor may require you to purchase extra insurance coverage or, if you do not do so, may purchase insurance on your behalf and bill you for the costs of the policy. The failure to notify a lender or lessor or to have insurance to cover the cost of damage to the vehicle may cause your vehicle to be repossessed or your lease to be revoked. If you have questions about this notice, you should contact your insurance agent, your lender or lessor or the Pennsylvania Insurance Department.
(ii) A transportation network company shall provide the notice required under subparagraph (i) upon any subsequent material reduction in insurance coverage by the company. For purposes of this subparagraph, "material reduction in insurance coverage" shall not include the replacement of insurance coverage with substantially similar insurance coverage from a different insurer by a transportation network company.
(iii) A transportation network company shall notify drivers in writing whether the transportation network company is providing comprehensive and collision coverage during service.
(2) If a transportation network company's insurer makes a payment for a claim covered under comprehensive or collision coverage, the transportation network company shall cause the transportation network company's insurer to issue the payment directly to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder or lessor.
(3) If a driver of a personal vehicle used in transportation network service that is subject to a lien or lease fails to maintain comprehensive or collision damage coverage required by the lienholder or lessor or to show evidence to the lienholder or lessor of the coverage upon reasonable request, the lienholder or lessor may obtain the coverage at the expense of the driver without prior notice to the driver.
Cross References. Section 57A07 is referred to in sections 57A03, 57A04, 57A16 of this title.