Bill > A2211

Introduced Session

This bill establishes a personal vehicle sharing program in this State. For each use of a private passenger automobile that a personal vehicle sharing program facilitates through the personal vehicle sharing program, the program is to: 1) provide a program insurance policy with coverage for the automobile and all persons who, with the consent of the program, control the automobile pursuant to the program. The limits for any coverage included in the program insurance policy is to not provide liability coverage that is less than three times the minimum insurance requirements for private passenger automobiles and is to not provide collision or comprehensive coverage that is less than the actual cash value of the vehicle; 2) provide the automobile's registered owner with proof of compliance with the insurance requirements of this bill; 3) collect, maintain, and make available to the automobile's registered owner, the owner's primary automobile liability insurer, and to any government agency as required by law, at the cost of the personal vehicle sharing program, verifiable electronic records that identify the date, time, initial, and final locations of the automobile, miles driven when the automobile is under the control of a person other than the automobile's registered owner pursuant to a personal vehicle sharing program, and any information concerning damages or injuries arising out of a personal vehicle sharing program; 4) not knowingly permit the automobile to be operated as a commercial vehicle, as defined pursuant to law, by a personal vehicle sharing program participant while engaged in personal vehicle sharing; 5) ensure that the vehicle is a private passenger automobile; and 6) facilitate the installation, operation, and maintenance of signage and computer hardware and software necessary for the automobile to be used in the program, including payment of the cost of damage or theft of that equipment and any damage caused to the automobile by the installation, operation, and maintenance of that equipment. This bill provides that, notwithstanding any law, rule, or regulation to the contrary, or any provision in an owner's insurance policy, in the event of a loss or injury that occurs during any time period when the automobile is under the operation and control of a person, other than the automobile's owner, pursuant to a personal vehicle sharing program, or otherwise under the control of a personal vehicle sharing program, the personal vehicle sharing program is to assume all liability of the owner and is to be considered the owner of the automobile for all purposes. Nothing in this bill shall limit the liability of the personal vehicle sharing program for its acts or omissions that result in injury to any person as a result of the use or operation of a personal vehicle sharing program. This bill further provides that a personal vehicle sharing program is to continue to be liable until the private passenger automobile is returned to a location designated by the personal vehicle sharing program and the earliest of one of the following occurs: 1) the expiration of the time period established for the particular use of the automobile; 2) the intent to terminate the personal vehicle sharing use is verifiably communicated to the personal vehicle sharing program; or 3) the automobile's owner takes possession and control of the automobile. The personal vehicle sharing program is to assume liability for a claim in which a dispute exists as to who was in control of the automobile when the loss occurred giving rise to the claim, and the owner's insurance policy is to indemnify the personal vehicle sharing program to the extent of its obligation under the applicable insurance policy, if it is determined that the automobile's owner was in control of the vehicle at the time of the loss. The bill states that if an automobile's registered owner is named as a defendant in a civil action for any loss or injury that occurs at any time when the automobile is under the operation and control of a person, other than the automobile's registered owner, pursuant to a personal vehicle sharing program, or is otherwise under the control of a personal vehicle sharing program, the program is to have the duty to defend and indemnify the automobile's registered owner. Notwithstanding any provision in the owner's insurance policy, while the automobile is under the operation and control of a person, other than the automobile's registered owner, pursuant to a personal vehicle sharing program, or is otherwise under the control of a personal vehicle sharing program the insurer of the automobile may exclude any and all coverage afforded under the owner's insurance policy; and a primary or excess insurer of the owners, operators, or maintainers of the automobile may notify an insured that the insurer has no duty to defend or indemnify any person or organization for liability for any loss that occurs during the use of the automobile pursuant to a personal vehicle sharing program. The bill provides that an owner's insurance policy may not be cancelled, voided, terminated, rescinded, or nonrenewed solely on the basis that the automobile has been made available for personal vehicle sharing pursuant to a personal vehicle sharing program that is in compliance with the provisions of this bill. Lastly, this bill provides that a private passenger automobile insured by the vehicle's registered owner under the owner's insurance policy shall not be classified as a commercial motor vehicle, for-hire motor vehicle, permissive use motor vehicle, or autocab, limousine, or livery vehicle solely because the automobile's registered owner allows the automobile to be used for personal vehicle sharing if the personal vehicle sharing is conducted under a personal vehicle sharing program and the annual revenue received by the automobile's registered owner that was generated by the personal vehicle sharing does not exceed the annual expenses of owning and operating the vehicle, including depreciation, interest, lease payments, motor vehicle loan payments, insurance, maintenance, parking, fuel, cleaning, automobile repair, and costs associated with personal vehicle sharing, including but not limited to the installation, operation, and maintenance of computer hardware and software, signage identifying the automobile as a personal vehicle sharing vehicle and any fees charged by a personal vehicle sharing program.

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John McKeon (D)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/14/2020)