§ 373.07. Transportation network company license, insurance required.

(a)

Every licensee and transportation network driver shall comply with all applicable insurance requirements mandated by federal, State of Minnesota, and city laws, including an obligation to cover no-fault personal injury protection (PIP) to the minimum required of a private passenger automobile in the State of Minnesota.

(b)

A transportation network company shall file with the licensing official documentation evidencing that the transportation network company or the driver has secured primary liability insurance coverage for each driver participating in the transportation network for incidents involving the driver during a prearranged ride. Coverage for incidents involving a driver during a prearranged ride must be in the amount of at least one million dollars ($1,000,000.00) per occurrence. The insurance policy must provide coverage at all times the driver is engaged in a prearranged ride.

(c)

For the period of time when a driver is logged into a transportation network company's digital network but is not engaged in a prearranged ride, the following insurance requirements apply:

(1)

A transportation network company or a driver shall maintain a primary automobile insurance policy that recognizes that the driver is a transportation network company driver and covers the driver's provision of transportation network company services while the driver is logged into the transportation network company's digital network;

(2)

Must meet at least the minimum coverage of at least fifty thousand dollars ($50,000.00) to any one (1) person in any one (1) accident, one hundred thousand dollars ($100,000.00) to all persons in any one (1) accident, and for property damage arising out of the use of the motor vehicle to a limit, exclusive of interest and costs, of thirty thousand dollars ($30,000.00) in any one (1) accident; and, is one (1) of the following:

a.

Full-time coverage equal to the coverage required by section 376.06 of this Code; or

b.

An insurance rider to, or endorsement of, the driver's personal automobile insurance policy that contains coverage equal to or greater than those specified in section 373.07(c)(2) of this Code; or

c.

A commercial liability insurance policy purchased by the transportation network company that provides primary coverage for the period of time in which a driver is logged into the digital network.

(3)

If a transportation network company purchases an insurance policy under subsection (c) it shall provide documentation to the licensing official evidencing that the transportation network company has secured the policy. If the responsibility is placed on a driver to purchase insurance under this subsection (a), the transportation network company shall verify that the driver has purchased an insurance policy under this subsection (a), and shall have a policy in place providing coverage beginning with the first dollar of claims in any instance where the driver's policy required under this section has lapsed or otherwise ceased to exist.

(4)

An insurance policy required by this section may be placed with an insurer duly licensed to provide insurance in the state under Minn. Stat. § 60A.07 or with a surplus lines insurer authorized under Minn. Stat. § 60A.07 or § 60A.196.

(5)

Nothing in this section requires a personal automobile insurance policy to provide coverage for the period of time in which a driver is logged into a transportation network company's digital network.

(6)

If more than one (1) insurance policy provides valid and collectible coverage for a loss arising out of an occurrence involving a motor vehicle operated by a driver, the responsibility for the claim must be divided on a pro rata basis among all of the applicable policies. This equal division of responsibility may only be modified by the written agreement of all of the insurers of the applicable policies and the owners of those policies.

(7)

In a claims coverage investigation, a transportation network company shall cooperate with a liability insurer that also insures the driver's transportation network company vehicle, including the provision of relevant dates and times during which an incident occurred that involved the driver while the driver was logged into a transportation network company's digital network.

(8)

Nothing in this section modifies or abrogates any otherwise applicable insurance requirements set forth in Minn. Stat. § 65B.49.

(9)

The existence of the insurance required by this section shall be disclosed on the transportation network company's website, and no contractual hold harmless required in the company's terms of service shall be used to evade the insurance requirements of this chapter.

(10)

No transportation network provider license shall be issued unless the applicant first provides certified copies of the insurance policies required in this section to the license official.

(11)

Any TNC driver shall provide to any authorized law enforcement officer or official city inspector, in addition to any applicable insurance, proof of the insurance policies required by this section.

(12)

The requirements of this subsection 373.07(c) become effective on January 15, 2015.

(Ord 14-39, § 1, 12-3-14)