Amendment #25, as changed to H.4508

Amendment #25 to H4508

Insurance Requirements

Mr. Murphy of Weymouth moves to amend the bill in Section 16, lines 331 through 391 inclusive, by striking sections 1,2,3 and 4 and inserting thereof the following sections:

Section 1 In this Chapter, the following words and phrases shall have the following meaning, unless the context requires otherwise:

“Owner”, any person who owns a motor vehicle and makes it available for use on a personal vehicle sharing platform.

“Personal Vehicle Sharing Platform,” an entity qualified to do business in the Commonwealth that is engaged in facilitating the sharing of private passenger motor vehicles. A personal vehicle sharing platform shall not be deemed a “rental company” under section 32E ½ of Chapter 90 of the General Laws.

“Personal Vehicle Sharing,” the operation and use of a private passenger motor vehicle, by persons other than the vehicle’s registered owner in connection with a personal vehicle sharing platform.

“Private Passenger Vehicle,” a motor vehicle which is designed primarily for the transport of persons.

“Registry,” The Registry of Motor Vehicles.

“Vehicle Sharing Delivery Period,” The period of time during which a shared vehicle is being delivered to the location of the vehicle sharing start time, if applicable, as documented by the governing vehicle sharing agreement.

“Vehicle Sharing Period,” The period of time that commences with the vehicle sharing delivery period or, if there is no vehicle sharing delivery period, that commences with the vehicle sharing start time and in either case ends at the vehicle sharing termination time.

“Vehicle Sharing Start Time,” The time when the shared vehicle becomes subject to the control of the shared vehicle driver at or after the time the reservation of a shared vehicle is scheduled to begin as documented in the records of a personal vehicle sharing platform.

“Vehicle Sharing Termination Time,” The earliest of the following events:

(1) the expiration of the agreed upon period of time established for the use of a shared vehicle according to the terms of the vehicle sharing platform agreement if the shared vehicle is delivered to the location agreed upon in the vehicle sharing agreement;

(2) when the shared vehicle is returned to a location as alternatively agreed upon by the shared vehicle owner and shared vehicle driver as communicated through a personal vehicle sharing platform; or

(3) when the shared vehicle owner or the shared vehicle owner’s authorized designee takes possession and control of the shared vehicle.

Section 2. (a) The registry, in conjunction with local law enforcement and the state police, shall ensure the safety and annual inspection of private passenger vehicles engaged in personal vehicle sharing pursuant to section 7A of chapter 90.

(b) The registry shall ensure that local law enforcement and state police shall be able to identify vehicles that are being used on a personal vehicle sharing platform by searching a vehicles license plate number. The registry shall promulgate regulations to implement this section.

Section 3. (a) Prior to a vehicle owner listing a vehicle on a personal vehicle sharing platform, the vehicle owner shall verify to the platform that the vehicle is not subject to any unresolved safety recalls from the manufacturer. If said vehicle is subject to any unresolved safety recalls, the owner shall not list the vehicle on a personal vehicle sharing platform.

(b) An owner shall provide notice to all insurers of the vehicle that they intend to make the vehicle available on a personal vehicle sharing platform.

Section 4. (a) A personal vehicle sharing platform shall provide clear and conspicuous cost estimates to consumers for all transportation and additional costs.

Such costs shall include, but not be limited to, the hourly or daily rate and, if charged separately, fees, insurance costs, and any protection package costs that are charged to the shared vehicle owner or driver.

A car sharing platform may charge a shared vehicle driver a separately stated fee to recover specified costs paid to a government entity that are incurred by the platform. If a rate is advertised by the car sharing platform, these fees must be clearly disclosed.

(b) A platform that provides insurance coverage to its users shall make said policies available to the division of insurance to be placed on file.

(1)the number of vehicles listed

(2)the number of users who used the platform to rent out a vehicle

(3)the number of hours vehicles were rented out to users via the platform

Section 5. (a). A personal vehicle sharing platform may not enter into a vehicle sharing agreement with a driver unless the driver who will operate the vehicle:

(1) holds a driver’s license issued by the Registry of Motor Vehicles that authorizes the driver to operate vehicles of the class of the shared vehicle; or

(2) is a non-resident who:

(i) has a driver’s license issued by the state or country of the driver’s residence that authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle; and

(ii) is at least the same age as of that required by a resident to drive; or

(3) otherwise is specifically authorized by the law of this Commonwealth to drive vehicles of the class of the shared vehicle.

A personal vehicle sharing platform shall keep a record of the name and address of the shared vehicle driver; the number of the driver’s license of the shared vehicle driver and each other person, if any, who will operate the shared vehicle; and the place of issuance of the driver’s license.

(b) A personal vehicle sharing platform shall have sole responsibility for any equipment, such as a GPS system or other special equipment that is put in or on the vehicle to monitor or facilitate the shared vehicle transaction, and shall agree to indemnify and hold harmless the vehicle owner for any damage to or theft of such equipment during the sharing period not caused by the vehicle owner. The personal vehicle sharing platform has the right to seek indemnity from the shared vehicle driver for any lost or damage to such equipment that occurs during the sharing period.

SECTION 2. Chapter 175 of the General Laws is hereby amended by adding the following new section:-

Section 230. (a) A personal vehicle sharing platform shall ensure that, for the duration of each vehicle sharing period, each vehicle that is being made available on a personal vehicle sharing platform, as defined in section 1 of chapter 90J, shall have automobile liability insurance that provides coverage amounting to at least $50,000 of coverage per individual for bodily injury, $100,000 of total coverage for bodily injury, $30,000 of coverage for property damage, uninsured motorist coverage, to the extent required by said section 113L, and personal injury protection, to the extent required by section 34A of chapter 90. The insurance may be held by the vehicle owner, the personal vehicle sharing platform, the shared vehicle driver, or a combination thereof. The insurance described in this subsection shall provide primary coverage for injuries or losses occurring during the vehicle sharing period.

(b)In every instance where insurance maintained by a vehicle owner or shared vehicle driver to fulfill the insurance requirements in subsections (a) has lapsed, failed to provide the required coverage, denied a claim for the required coverage or otherwise ceased to exist, insurance maintained by a personal vehicle sharing platform shall provide the coverage required by said subsections (a), beginning with the first dollar of a claim, and shall have the duty to investigate and defend that claim.

(c)Coverage under an automobile insurance policy maintained by the personal vehicle sharing platform shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurer be required to first deny a claim.

(d)A personal vehicle sharing platform may procure contracts of insurance from a surplus lines insurer eligible pursuant to section 168 for itself, vehicles, vehicle owners, and shared vehicle drivers engaged in personal vehicle sharing, if the personal vehicle sharing program expressly acknowledges its understanding, that (1) the company from which insurance is procedure is not admitted to transaction insurance in the Commonwealth and (2) in the event of the insolvency of the company, a loss shall not be paid by the Massachusetts Insurers Insolvency Fund under chapter 175D.

(e)Insurers that write automobile insurance may exclude any and all coverage afforded under the policy issued to an owner or operator of a vehicle used on a personal vehicle sharing platform for any loss or injury that occurs during the vehicle sharing period. This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to: (i) liability coverage for bodily injury and property damage; (ii) personal injury protection coverage as defined in section 34A of chapter 90; (iii) uninsured and underinsured motorist coverage; (iv) medical payments coverage; (v) comprehensive physical damage coverage; and (vi) collision physical damage coverage.

Such exclusions shall apply notwithstanding any requirement of said section 34A of said chapter 90 and section 113L.

Nothing shall preclude an insurer from providing coverage for the vehicle if the insurer so chooses to do so by contract or endorsement.

Automobile insurers that exclude the coverage described in this section shall not have a duty to defend or indemnify any claim expressly excluded by a policy. Nothing in this section shall invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in the commonwealth before the enactment of this section that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. An automobile insurer that defends or indemnifies a claim against a vehicle that is being used on a personal vehicle sharing platform 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 vehicle in satisfaction of the coverage requirements of this section at the time of loss.

(f) The insurance policy maintained by the personal vehicle sharing platform shall assume primary coverage for a claim when its providing the insurance required under subsection (a) and

(1) a dispute exists as to who was in control of the shared vehicle at the time of the loss; and

(2) the personal vehicle sharing platform does not have available, did not retain, or fails to provide the information required by subsection (g).

(g) A personal vehicle sharing platform shall collect and verify records pertaining to the use of a vehicle, including, but not limited to, times used, fees paid by the vehicle owner, and revenues received by the vehicle owner and provide that information upon request to the vehicle owner, the vehicle owner’s insurer, or the shared vehicle driver’s insurer to facilitate claim coverage investigation. The personal vehicle sharing platform shall retain the records for a time period not less than the applicable personal injury statute of limitations.

(i) A motor vehicle insurer shall have the right to seek contribution against the insurance policy maintained by the personal vehicle sharing platform under subsection (a) for defense or indemnification of a claim if the claim was:

(1) made against the vehicle owner or shared vehicle driver for loss or injury that occurred during the car sharing period; and

(2) excluded under the terms of the policy of the insurer seeking contribution.

(j) Nothing in this section limits the ability of a personal vehicle sharing platform to, by contract, seek indemnification from the vehicle owner or shared vehicle driver for economic loss sustained by the personal vehicle sharing platform resulting from the breach of the terms and conditions of the vehicle sharing agreement.

(k) The insurance requirements in this section shall constitute adequate insurance for shared vehicles and shall satisfy the financial responsibility requirement for a motor vehicle established by section 34A of chapter 90 and section 113L; provided, however, that the insurance requirements in this section shall only satisfy the financial responsibility requirements for a motor vehicle established by said section 34A of said chapter 90 and said section 113L with respect to the use of a shared vehicle through a personal vehicle sharing platform during the sharing period.

(l) A personal vehicle sharing platform may assume, either as part of the hourly or daily fee or in a separate charge to the vehicle owner or shared vehicle driver, contractual responsibility for any or all claims against the shared vehicle driver for damages to or loss of the shared vehicle during the shared vehicle period. In offering and entering into a contractual assumption of such claims, the personal shared vehicle platform shall adhere to the requirements and penalties applicable to collision damage waivers in rental agreements under section 32E ½ of section 90 of the General Laws; provided, however, that notices, disclosures, and acceptances made electronically shall be exempt from placement and stylistic display requirements if made in a clear and conspicuous manner. Notwithstanding other provisions of law to the contrary, such contractual assumptions by a personal vehicle sharing platform shall not be deemed contracts of insurance or the offering or production of contracts of insurance.

SECTION 3. Section 168, subsection (b) of chapter 175, as appearing in the 2018 Official Edition, is hereby amended by inserting the after the words “transportation network vehicles” the following words: “and vehicles used through a personal motor vehicle sharing platform during the sharing period,”.