KRS 365.522: Liability -- Exceptions -- Motor vehicle insurance coverage requirements --

Construction.

(1) (a) A peer -to-peer car sharing program shall assume the liability, except as

provided in paragraph (b)1. of this subsection, of a shared vehicle own er for

bodily injury and property damage to third parties and basic reparation

benefits losses during the car sharing period in an amount stated in the car

sharing program agreement, which amount shall not be less than:

1. For bodily injury and property da mage to third parties, the amounts set

forth in KRS 304.39-110; and

2. For basic reparation benefits, the amount set forth in KRS 304.39 -

020(2).

(b) Notwithstanding the definition of "car sharing termination time" set forth in

KRS 365.520, the assumption o f liability required under paragraph (a) of this

subsection:

1. Shall not apply when a shared vehicle owner:

a. Makes an intentional or fraudulent material misrepresentation or

omission to the peer -to-peer car sharing program before the car

sharing period in which the accident occurs; or

b. Acts in concert with a shared vehicle driver who fails to return the

shared vehicle pursuant to the terms of the car sharing program

agreement; and

2. Shall apply to bod ily injury, property damage, and basic reparation

benefits losses by damaged third parties required under KRS 304.39 -

080.

(2) (a) 1. A peer -to-peer car sharing program shall ensure that, during each car

sharing period, the shared vehicle owner and the shar ed vehicle driver

are covered under a motor vehicle liability insurance policy that:

a. Provides coverage in amounts not less than the minimum amounts

set forth in KRS 304.39-110; and

b. Either:

i. Recognizes that the motor vehicle insured under the policy is

made available and used as a shared vehicle through a peer -

to-peer car sharing program; or

ii. Does not exclude use of the motor vehicle as a shared

vehicle by a shared vehicle driver.

2. For purposes of this paragraph, "recognizes" means acceptance an d

recognition of coverage.

(b) 1. The requirements of paragraph (a) of this subsection may be satisfied by

motor vehicle liability insurance maintained by:

a. The shared vehicle owner;

b. The shared vehicle driver;

c. The peer-to-peer car sharing program; or

d. Any combination of the persons described in this subparagraph.

2. In the event a claim occurs in another state with minimum coverage

limits higher than the amounts set forth in KRS 304.39 -110 during the

car sharing period, the coverage maintained und er this paragraph shall

satisfy the difference in minimum coverage amounts, up to the

applicable policy limits.

(c) Except as otherwise provided in this section:

1. The insurance described in paragraph (b) of this subsection that is

satisfying the insuranc e requirement of paragraph (a) of this subsection

shall be primary during each car sharing period;

2. In the event a bodily injury or liability claim occurs and there is more

than one (1) motor vehicle liability insurance policy as permitted under

paragraph (b)1.d. of this subsection, the order of priority of coverage

shall be as follows, unless one (1) policy contains a provision

affirmatively stating that the policy's coverage is primary and thereby is

primary during the car sharing period:

a. A policy maintained by the shared vehicle driver is first in priority;

b. A policy maintained by the peer -to-peer car sharing program is

next in priority; and

c. A policy maintained by the shared vehicle owner is last in priority;

and

3. If coverage is applicable thr ough more than one (1) motor vehicle

liability insurance policy as permitted under paragraph (b)1.d. of this

subsection and more than one (1) of those policies contain a provision

affirmatively stating that the policy's coverage is primary, the order of

priority of coverage shall be as described in subparagraph 2.a. to c. of

this paragraph.

(d) The insurer, insurers, or peer -to-peer car sharing program providing coverage

under paragraph (a) or (b) of this subsection 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 accident and

the peer -to-peer car sharing program does not have available, did not

retain, or fails to provide the information required under KRS

365.524(2); or

2. Whether the shared vehicle was returned to the alternatively agreed

upon location as required under KRS 365.520(1)(e)2.

(e) If insurance maintained by a shared vehicle owner or shared vehicle driver in

accordance with paragraph (b) of this subsection has l apsed or does not

provide the required coverage, insurance maintained by a peer -to-peer car

sharing program shall provide the coverage required by paragraph (a) of this

subsection beginning with the first dollar of a claim and have the duty to

defend such claim except under circumstances set forth in subsection (1)(b)1.

of this section.

(3) Coverage under a motor vehicle insurance policy maintained by a peer -to-peer car

sharing program shall not be dependent upon another motor vehicle insurer first

denying a claim nor shall another motor vehicle insurance policy be required to first

deny a claim.

(4) Nothing in this section shall be construed to:

(a) Limit the liability of a peer -to-peer car sharing program for any act or

omission of the peer-to-peer car sharing program itself that results in injury to

any person as a result of the use of a sh ared vehicle through a peer-to-peer car

sharing program;

(b) Limit the ability of a peer -to-peer car sharing program to, by contract, seek

indemnification from the shared vehicle owner or the shared vehicle driver for

economic loss sustained by the peer -to-peer car sharing program resulting

from a breach of the terms and conditions of the car sharing program

agreement;

(c) Invalidate or limit an exclusion contained in a motor vehicle liability

insurance policy, including any policy in use or approved for us e that

excludes coverage for motor vehicles made available for rent, sharing, or hire,

or for any business use; or

(d) Invalidate, limit, or restrict an insurer's ability under existing law to:

1. Underwrite any insurance policy; or

2. Cancel and nonrenew policies.