2016 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 1 - Public Utilities and Carriers
Chapter 13 - Motor Carriers
Subchapter 7 - -- Transportation Network Company Services Act
§ 23-13-709. Insurance requirements

(a) (1) On and after July 22, 2015, a transportation network company driver or a transportation network company on the driver's behalf shall maintain primary automobile insurance that:

(A) Recognizes that the driver is a transportation network company driver and covers the driver while the driver is logged on to the transportation network company's digital network while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to provide transportation network services;

(B) (i) Provides 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 while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride.

(ii) The coverage requirements described in subdivision (a)(1)(B)(i) of this section may be satisfied by any combination of:

(a) Automobile insurance maintained by the transportation network company driver; or

(b) Automobile insurance maintained by the transportation network company;

(C) (i) Provides primary automobile liability insurance coverage of at least one million dollars ($1,000,000) for death, bodily injury, and property damage while a transportation network company driver is engaged in a prearranged ride.

(ii) The coverage requirements described in subdivision (a)(1)(C)(i) of this section may be satisfied by any combination of:

(a) Automobile insurance maintained by the transportation network company driver; or

(b) Automobile insurance maintained by the transportation network company.

(2) If insurance maintained by a driver under subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section has lapsed or does not provide the required coverage, the insurance maintained by a transportation network company shall provide the coverage required under this subsection beginning with the first dollar of a claim, and the insurer has the duty to defend the claim.

(3) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer's first denial of a claim, nor shall a personal automobile insurance policy be required to first deny a claim.

(4) Insurance required under this subsection may be placed with an insurer authorized to do business in this state or with a surplus-lines insurer eligible under § 23-65-305.

(5) Insurance that satisfies the requirements of this subsection shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

(6) (A) A transportation network company driver shall carry proof of coverage satisfying subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section with him or her during his or her use of a motor vehicle in connection with a transportation network company's digital network.

(B) In the event of an accident, a transportation network company driver shall provide insurance coverage information required under subdivision (a)(6)(A) of this section to the directly interested parties, automobile insurers, and investigating police officers upon request under the Arkansas Voluntary Enhanced Security Driver's License and Identification Card Act, § 27-16-1201 et seq.

(C) Upon a request under subdivision (a)(6)(B) of this section, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers whether he or she was logged on to the transportation network company's digital network or was on a prearranged ride at the time of the accident.

(b) A transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network:

(1) The 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 personal vehicle in connection with a transportation network company's digital network; and

(2) That the transportation network company driver's own automobile insurance policy might not provide any coverage while the transportation network company driver is logged on to the transportation network company's digital network and is available to receive prearranged ride requests or is engaged in a prearranged ride, depending on the terms of the insurance policy.

(c) (1) Insurers that write automobile insurance in this state may exclude any and all coverage afforded under the owner's insurance policy for any loss or injury that occurs while a transportation network company driver is logged on to a transportation network company's digital network or while a transportation network company driver provides a prearranged ride.

(2) The right to exclude all coverage under subdivision (c)(1) of this section may apply to any coverage included in an automobile insurance policy, including without limitation:

(A) Liability coverage for bodily injury and property damage;

(B) Personal injury protection coverage as described in § 23-89-202;

(C) Uninsured and underinsured motorist coverage;

(D) Medical payments coverage;

(E) Comprehensive physical damage coverage; and

(F) Collision physical damage coverage.

(3) An exclusion permitted under subdivision (c)(2) of this section shall apply notwithstanding any requirement under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

(4) An automobile insurer that excludes the coverage described in subsection (a) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder.

(5) Nothing in this subchapter shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in Arkansas prior to the enactment of this subchapter, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.

(6) This section does not imply or require that a personal automobile insurance policy provide coverage while a transportation network company driver is logged on to the transportation network company's digital network, while the transportation network company driver is engaged in a prearranged ride, or while the transportation network company driver otherwise uses a motor vehicle to provide transportation network services.

(7) This section does not preclude an insurer from providing coverage for the transportation network company driver's motor vehicle, if it so chose to do so by contract or endorsement.

(8) (A) An automobile insurer that excludes the coverage described in subdivision (c)(2) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder.

(B) This section does not invalidate or limit an exclusion contained in an insurance policy, including any policy in use or approved for use in this state before July 22, 2015, that excludes coverage for a vehicle used to carry a person or property for a charge or available for hire by the public.

(9) An automobile insurer that defends or indemnifies a claim against a transportation network company 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 transportation network company driver in satisfaction of the coverage requirements of subsection (a) of this section at the time of loss.

(d) In a claims coverage investigation, a transportation network company and any insurer potentially providing coverage under subsection (a) of this section shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver, if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident and disclose to each other a clear description of the coverage, exclusions, and limits provided under any automobile insurance policy maintained under subsection (a) of this section.