A6147

An Act concerning uninsured and underinsured motorist coverage and amending P.L.2017, c.26.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 10 of P.L.2017, c.26 (C.39:5H-10) is amended to read as follows:

10. a. On or before the effective date of P.L.2017, c.26 (C.39:5H-1 et seq.), a transportation network company driver, transportation network company, or any combination of the two shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver, or otherwise uses a personal vehicle to provide prearranged rides, and covers the driver: (1) while the driver is logged on to the transportation network company's digital network but is not providing a prearranged ride; or (2) while the driver is providing a prearranged ride.

b. Whenever a transportation network company driver is logged on to the transportation network company's digital network and is available to receive a prearranged ride request, but is not providing a prearranged ride, the transportation network company driver, transportation network company, or any combination of the two shall maintain the following insurance coverage:

(1) primary automobile liability insurance in the amount of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage;

(2) primary personal injury protection benefits that provide coverage amounts selected pursuant to section 4 of P.L.1972, c.70 (C.39:6A-4); and

(3) uninsured and underinsured motorist coverage to the extent required pursuant to section 2 of P.L.1968, c.385 (C.17:28-1.1).

c. Whenever a transportation network company driver is providing a prearranged ride, the transportation network company driver, transportation network company, or any combination of the two shall maintain the following insurance coverage:

(1) primary automobile liability insurance in the amount of at least $1,500,000 for death, bodily injury, and property damage;

(2) primary automobile insurance for medical payments benefits in an amount of at least $10,000 per person per incident, which shall only apply to and provide coverage for the benefit of the transportation network company driver; and

(3) uninsured and underinsured motorist coverage [in an amount of at least $1,500,000] to the extent required pursuant to subsection a. of section 2 of P.L.1968, c.385 (C.17:28-1.1).

d. If the insurance coverage maintained by a transportation network company driver pursuant to subsections b. and c. of this section has lapsed or does not provide the required coverage, insurance maintained by the transportation network company shall provide the coverage required by subsections b. and c. of this section beginning with the first dollar of a claim and the transportation network company shall have the duty to defend the claim.

e. Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent upon a private passenger automobile insurer first denying a claim nor shall a private passenger automobile insurance policy be required to first deny a claim.

f. Insurance coverage required by this section may be obtained from an insurance company duly licensed to transact business under the insurance laws of this State or by an eligible surplus lines insurer under section 11 of P.L.1960, c.32 (C.17:22-6.45).

g. The coverage required pursuant to subsections b. and c. of this section shall be deemed to meet the financial responsibility requirements of the "Motor Vehicle Security-Responsibility Law," P.L.1952, c.173 (C.39:6-23 et seq.), P.L.1972, c.197 (C.39:6B-1 et seq.), and P.L.1972, c.70 (C.39:6A-1 et seq.).

h. A transportation network company driver shall carry proof of insurance required pursuant to subsections b. and c. of this section at all times while using a personal vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall, upon request, provide insurance coverage information to the directly interested parties, automobile insurers, and investigating law enforcement officers. The insurance coverage information may be displayed or provided in either paper or electronic form as provided in R.S.39:3-29. A transportation network company driver shall, upon request, disclose to the directly interested parties, automobile insurers, and investigating law enforcement officers whether the driver was logged on to a digital network as a driver or whether the driver was providing a prearranged ride at the time of the accident.

i. If a transportation network company's insurer makes a payment for a claim for damage to a motor vehicle in which a lienholder holds a security interest, then the transportation network company shall cause its insurer to issue the payment directly to the business repairing the motor vehicle or jointly to the owner of the motor vehicle and the primary lienholder on the covered motor vehicle.

j. The limitation on lawsuit option set forth in subsection a. of section 8 of P.L.1972, c.70 (C.39:6A-8) shall not be assertable by a transportation network company or a transportation network company driver in any action for damages arising from a prearranged ride, or be asserted against any party not receiving personal injury protection benefits in any action for damages arising from a prearranged ride.

(cf: P.L.2017, c.26, s.10)

2. This act shall take effect immediately.

STATEMENT

This bill lowers the minimum amount of uninsured and underinsured motorist coverage required to be maintained by a transportation network company driver, a transportation network company, or any combination of the two whenever a transportation network company driver is providing a prearranged ride. Under the bill, the required coverage would be lowered from $1,500,000 to (1) an amount or limit of $25,000 for plans issued or renewed on or after January 1, 2023 but prior to January 1, 2026, and $35,000 for plans issued or renewed on or after January 1, 2026, exclusive of interest and costs, on account of injury to, or death of, one person, in any one accident; (2) an amount or limit, subject to such limit for any one person so injured or killed, of $50,000 for plans issued or renewed after January 1, 2023 but prior to January 1, 2026, and $70,000 for plans issued or renewed after January 1, 2026, exclusive of interest and costs, on account of injury to or death of, more than one person, in any one accident; and (3) an amount or limit of $25,000, exclusive of interest and costs, for damage to property in any one accident for plans issued or renewed after January 1, 2023.