N.Y. Vehicle & Traffic Law § 1693: Financial responsibility of transportation network companies

§ 1693. Financial responsibility of transportation network companies.

1. A TNC driver, or TNC on the TNC driver's behalf through a group

policy, shall maintain insurance that recognizes that the driver is a

TNC driver and provides financial responsibility coverage:

(a) while the TNC driver is logged onto the TNC's digital network; and

(b) while the TNC driver is engaged in a TNC prearranged trip.

2. (a) The following automobile financial responsibility insurance

requirements shall apply while a TNC driver is logged onto the TNC's

digital network but is not engaged in a TNC prearranged trip: insurance

against loss from the liability imposed by law for damages, including

damages for care and loss of services, because of bodily injury to or

death of any person, and injury to or destruction of property arising

out of the ownership, maintenance, use or operation of a personal

vehicle or vehicles within this state, or elsewhere in the United States

in North America or Canada, subject to a limit, exclusive of interest

and costs, with respect to each such occurrence, of at least

seventy-five thousand dollars because of bodily injury to or death of

one person in any one accident and, subject to said limit for one

person, to a limit of at least one hundred fifty thousand dollars

because of bodily injury to or death of two or more persons in any one

accident, and to a limit of at least twenty-five thousand dollars

because of injury to or destruction of property of others in any one

accident, provided however, that such policy need not be for a period

coterminous with the registration period of the personal vehicle

insured, and coverage in satisfaction of the financial responsibility

requirements set forth in section three thousand four hundred twenty of

the insurance law, article fifty-one of the insurance law, and such

other requirements or regulations that may apply for the purposes of

satisfying the financial responsibility requirements with respect to the

use or operation of a motor vehicle.

(b) The coverage requirements of paragraph (a) of this subdivision may

be satisfied by any of the following:

(i) insurance maintained by the TNC driver; or

(ii) insurance provided through a group policy maintained by the TNC;

or

(iii) a combination of subparagraphs (i) and (ii) of this paragraph.

3. (a) The following automobile financial responsibility insurance

requirements shall apply while a TNC driver is engaged in a TNC

prearranged trip: insurance against loss from the liability imposed by

law for damages, including damages for care and loss of services,

because of bodily injury to or death of any person, and injury to or

destruction of property arising out of the ownership, maintenance, use,

or operation of a specific personal vehicle or vehicles within this

state, or elsewhere in the United States in North America or Canada,

subject to a limit, exclusive of interest and costs, with respect to

each such occurrence, of at least one million two hundred fifty thousand

dollars because of bodily injury to or death of any person, and injury

to or destruction of property provided however, that such policy need

not be for a period coterminous with the registration period of the

personal vehicle insured, and coverage in satisfaction of the financial

responsibility requirements set forth in section three thousand four

hundred twenty of the insurance law, article fifty-one of the insurance

law; coverage provided in accordance with subsection (f) of section

three thousand four hundred twenty of the insurance law, providing

supplementary uninsured/underinsured motorist insurance for bodily

injury, in the amount of one million two hundred fifty thousand dollars

because of bodily injury to or death of any person in any one accident;

and such other requirements or regulations that may apply for the

purposes of satisfying the financial responsibility requirements with

respect to the use or operation of a motor vehicle.

(b) The coverage requirements of paragraph (a) of this subdivision may

be satisfied by any of the following:

(i) insurance maintained by the TNC driver; or

(ii) insurance provided through a group policy maintained by the TNC;

or

(iii) a combination of subparagraphs (i) and (ii) of this paragraph.

4. A TNC shall, upon entering into a contractual agreement with a TNC

driver, provide notice to the TNC driver that he or she may need

additional insurance coverage including motor vehicle physical damage

coverage as described in paragraph nineteen of subsection (a) of section

one thousand one hundred thirteen of the insurance law if the TNC

vehicle being used by the TNC driver is subject to a lease or loan. A

TNC shall also post this notice on its website in a prominent place, and

provide contact information for the department of financial services.

5. If insurance maintained by a TNC driver pursuant to subdivisions

two and three of this section has lapsed or does not provide the

required coverage, then the group policy maintained by a TNC shall

provide the coverage required by this section beginning with the first

dollar of a claim and have the duty to defend such claim.

6. Coverage under a group policy maintained by the TNC shall not be

dependent on the denial of a claim by the insurer that issued the

insurance policy used to register the TNC vehicle, nor shall that

insurer be required to first deny a claim.

7. (a) Except as provided in paragraph (b) of this subdivision, a

group policy maintained by a TNC pursuant to subparagraph (ii) of

paragraph (b) of subdivisions two or three of this section shall be

placed with an insurer authorized to write insurance in this state.

(b) If a TNC is unable to purchase a group policy pursuant to

subparagraph (ii) of paragraph (b) of subdivisions two or three of this

section because such insurance is unavailable from authorized insurers

the TNC may acquire such group insurance with an excess line broker

pursuant to section two thousand one hundred eighteen of the insurance

law.

(c) The obligation to determine whether the insurance required by this

section is unavailable from insurers authorized to write insurance in

this state shall be made prior to the initial placement and at each

renewal of a policy.

8. A TNC driver who, while operating a TNC vehicle was logged on to

the TNC's digital network but not engaged in a TNC prearranged trip or

was engaged in a TNC prearranged trip, and has in effect the insurance

required pursuant to this article, shall not be deemed to be in

violation of article six of this chapter during such time that he or she

was logged on to the TNC's digital network but not engaged in a TNC

prearranged trip or was engaged in a TNC prearranged trip.

9. A TNC driver shall carry proof of coverage satisfying subdivisions

two and three of this section with him or her at all times during his or

her use or operation of a TNC vehicle in connection with a TNC's digital

network. Such proof of coverage shall be in such form as the

commissioner shall prescribe, which may be in the form of an insurance

identification card as defined in section three hundred eleven of this

chapter. Any insurance identification card issued pursuant to the

provisions of this article shall be in addition to the insurance

identification card required pursuant to article six of this chapter,

and nothing contained in this article shall be deemed to supersede the

requirements of such article six. Whenever the production of an

insurance identification card is required by law, a TNC driver shall (a)

produce the insurance identification card issued pursuant to article six

of this chapter and, (b) if such driver (i) was logged onto the TNC's

digital network but not engaged in a TNC prearranged trip or (ii) was

engaged in a TNC prearranged trip, such driver shall also produce the

insurance identification card required pursuant to this article.

10. The superintendent of financial services is authorized to issue

such rules and regulations necessary to implement this section.

11. The superintendent of financial services may promulgate

regulations to address insurance coverage under this section and section

sixteen hundred ninety-five of this article when a TNC driver uses

multiple digital networks simultaneously.

12. Nothing in this section shall impose financial responsibility

requirements upon any entities operating as vehicles for hire in a city

with a population of one million or more.

13. An insurer shall not include a mandatory arbitration clause in a

policy issued pursuant to this section. Nothing in this section

supercedes the mandatory arbitration requirements contained in section

five thousand one hundred five of the insurance law.