Insurance requirements.

(a) On or before October 30, 2016, and thereafter, a TNC driver or a TNC on the behalf of the TNC driver shall maintain primary automobile insurance that recognizes that the driver is a TNC driver or otherwise uses a vehicle to transport riders for compensation and covers the driver under both of the following circumstances:

(1) While the TNC driver is logged onto the digital network of a TNC.

(2) While the TNC driver is engaged in a prearranged ride.

(b)(1) The following automobile insurance requirements shall apply while a participating TNC driver is logged on to the digital network of a TNC and is available to receive transportation requests but is not engaged in a prearranged ride:

a. Primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage.

b. All other state mandated coverage for motor vehicles, including the requirements under the Motor Vehicle Safety-Responsibility Act, Chapter 7 of this title.

(2) The coverage requirements of this subsection may be satisfied by any of the following:

a. Automobile insurance maintained by the TNC driver.

b. Automobile insurance maintained by the TNC.

c. Any combination of a. and b.

(c)(1) The following automobile insurance requirements shall apply while a TNC driver is engaged in a prearranged ride:

a. Primary automobile liability insurance that provides at least one million dollars ($1,000,000) for death, bodily injury, and property damage.

b. All other state mandated coverage for motor vehicles, including the requirements under the Motor Vehicle Safety-Responsibility Act, Chapter 7 of this title.

(2) The coverage requirements of this subsection may be satisfied by any of the following:

a. Automobile insurance maintained by the TNC driver.

b. Automobile insurance maintained by the TNC.

c. Any combination of a. and b.

(d) If insurance maintained by a TNC driver under subsection (b) or (c) has lapsed or does not provide the required coverage, insurance maintained by a TNC shall provide the coverage required by this chapter beginning with the first dollar of a claim and shall have the duty to defend the claim.

(e) Coverage under an automobile insurance policy maintained by a TNC may not be made dependent on a personal automobile insurer first denying a claim and a personal automobile insurance policy may not be required to first deny a claim.

(f) Insurance required by this chapter may be placed with an insurer licensed under state law or with a surplus lines insurer eligible under state law that has a credit rating of no less than A- from A.M. Best or A from Demotech or a similar rating from another rating agency recognized by the Department of Insurance.

(g)(1) Insurance satisfying the requirements of this chapter shall satisfy the financial responsibility requirement for a motor vehicle under the Motor Vehicle Safety-Responsibility Act, Chapter 7 of this title.

(2) Nothing in this chapter shall relieve a TNC driver not logged onto the digital network of a TNC or not engaged in a prearranged ride from the financial responsibility requirements for a motor vehicle under the Motor Vehicle Safety-Responsibility Act, Chapter 7 of this title.

(h)(1) A TNC driver shall carry proof of coverage satisfying this chapter with him or her at all times during his or her use of a vehicle in connection with the use of a digital network of a TNC.

(2) In the event of an accident, a TNC driver shall provide this insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers.

(3) Upon request, a TNC driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether he or she was logged on to the digital network of a TNC or on a prearranged ride at the time of an accident.

(i) This chapter shall have no effect or limitation on the rights of a TNC rider to coverage that may be available for underinsured or uninsured motorist coverages pursuant to Section 32-7-23 as an additional recovery beyond any insurance coverage available to the TNC rider under this chapter.

(j) No contract between a TNC and a TNC driver or TNC rider shall diminish the automobile insurance requirements under this chapter.

(Act 2016-409, §2.)