Chapter 3942 | Transportation Network Companies

Section 3942.01 | Definitions.

• Effective: March 23, 2016
• Latest Legislation: House Bill 237 - 131st General Assembly

As used in this chapter:

(A) "Automobile insurance policy" has the same meaning as in section 3937.30 of the Revised Code.

(B) "Chauffeured limousine" has the same meaning as in section 4501.01 of the Revised Code.

(C) "Digital network" means any online-enabled application, software, web site, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.

(D) "Personal vehicle" means a vehicle to which all of the following apply:

(1) The vehicle is used by a transportation network company driver.

(2) The vehicle is owned, leased, or otherwise authorized for use by the transportation network company driver.

(3) The vehicle is not a taxicab or other similar vehicle for hire, unless the vehicle is being used to provide transportation network company services on behalf of a transportation network company that has been issued a permit under section 4925.02 of the Revised Code.

(4) The vehicle is not a chauffeured limousine or a vehicle being operated pursuant to a ridesharing arrangement.

(E) "Ridesharing arrangement" has the same meaning as in section 4921.01 of the Revised Code.

(F) "Transportation network company" includes a corporation, partnership, association, limited liability company, proprietorship, or any other entity operating in this state that uses a digital network to connect transportation network company riders to transportation network company drivers who provide transportation network company services.

(G) "Transportation network company driver" or "driver" means an individual to whom both of the following apply:

(1) The individual receives connections to passengers and potential passengers and related services from a transportation network company in exchange for the payment of a fee to the company.

(2) The individual uses a personal vehicle to offer or provide transportation network company services to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.

(H) "Transportation network company rider" or "rider" means an individual or individuals using a transportation network company's digital network to connect with a transportation network company driver who provides transportation network company services to the individual in a personal vehicle between points chosen by the individual.

(I)(1) "Transportation network company services" means the provision of transportation beginning when a transportation network company driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports the requesting rider, and ending when the last requesting rider departs from the personal vehicle.

(2) "Transportation network company services" do not include services provided by any of the following:

(a) A taxicab or other similar vehicle for hire, unless the taxicab or other vehicle is providing the services described in division (I)(1) of this section on behalf of a transportation network company that has been issued a permit under section 4925.02 of the Revised Code;

(b) A chauffeured limousine;

(c) A ridesharing arrangement.

Section 3942.02 | Insurance.

• Effective: March 23, 2016
• Latest Legislation: House Bill 237 - 131st General Assembly

(A)(1) Each transportation network company driver shall be covered by a primary automobile insurance policy that recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport passengers for compensation and provides coverage during both of the following periods of time:

(a) While the driver is logged on to the transportation network company's digital network;

(b) While the driver is engaged in transportation network company services.

(2) The primary automobile insurance policy required by division (A)(1) of this section shall meet the following coverage requirements:

(a) While a 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 transportation network company services, primary automobile insurance shall be maintained in the following amounts:

(i) At least fifty thousand dollars because of bodily injury to or death of one person in any one accident;

(ii) At least one hundred thousand dollars because of bodily injury or death of two or more persons in any one accident;

(iii) At least twenty-five thousand dollars because of injury to property of others in any one accident.

(b) While a transportation network company driver is engaged in transportation network company services, primary automobile insurance shall be maintained in an amount of at least one million dollars because of bodily injury or death of one or more persons or injury to property of others in any one accident.

(3) The insurance required by divisions (A)(1) and (2) of this section may be satisfied by either of the following or a combination of the following:

(a) An automobile insurance policy that is maintained by the transportation network company driver;

(b) An automobile insurance policy that is maintained by the transportation network company.

(B)(1) If personal automobile insurance maintained by a transportation network company driver does not provide liability coverage in the amounts required by division (A)(2) of this section, insurance maintained by the transportation network company shall provide the required coverage, beginning with the first dollar of the claim and shall have the duty to defend the claim.

(2) An automobile insurance policy maintained by a transportation network company in accordance with this section shall not require the driver's personal automobile insurer or policy to first deny a claim before providing coverage.

(C) An automobile insurance policy required by this section shall be purchased from either of the following:

(1) A domestic, foreign, or alien insurance company organized or admitted under Title XXXIX of the Revised Code to issue such a policy;

(2) An insurer not holding a license in this state if both of the following criteria are met:

(a) The insurer is an eligible surplus lines insurance company and the policy is obtained through a person or entity that holds a surplus lines broker's license in accordance with sections 3905.30 to 3905.38 of the Revised Code or the insurer is an eligible risk retention group.

(b) The insurer has a credit rating of not less than "A-" from A.M. Best or "A" from Demotech or a similar rating from another rating agency recognized by the department of insurance.

(D) A transportation network company driver shall carry proof of insurance satisfying the coverage requirements of division (A)(2) of this section either physically or through use of an electronic wireless communications device described in section 4509.103 of the Revised Code at all times during the driver's use of a personal vehicle in connection with a transportation network company's digital network. In the event of an accident, the driver shall provide this insurance information to all parties claiming an interest in the insurance, other insurers, and upon request of a peace officer or state highway patrol trooper in accordance with division (D)(2) of section 4509.101 of the Revised Code. Upon such a request, the driver also shall disclose to the interested parties, insurers, and officers and troopers whether the driver was logged on to the transportation network company's digital network or was providing transportation network company services at the time of the accident.

(E) An automobile insurance policy that meets the requirements of this section satisfies the proof of financial responsibility for motor vehicles required under Chapter 4509. of the Revised Code.

(F) The insurance coverage requirements of this chapter shall apply to taxicabs only during the periods during which the taxicab is performing transportation network company services. When a taxicab is performing taxi services, the insurance requirements applicable to taxicabs shall apply. While a taxicab is operating as a taxicab and not performing transportation network company services, it shall comply with all laws, ordinances, and rules relating to taxicabs.

Section 3942.03 | Exclusion of coverage.

• Effective: March 23, 2016
• Latest Legislation: House Bill 237 - 131st General Assembly

(A) An insurer issuing an automobile insurance policy to the owner or operator of a personal vehicle may exclude any and all coverage afforded under the 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 the driver is providing transportation network company services. This right to exclude any and all coverage may apply to any coverage included in the automobile insurance policy, including all of the following:

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

(2) Uninsured and underinsured motorist coverage described in section 3937.18 of the Revised Code;

(3) Uninsured and underinsured motor vehicle property damage coverage described in section 3937.181 of the Revised Code;

(4) Medical payments coverage;

(5) Comprehensive physical damage coverage;

(6) Collision physical damage coverage.

Any such exclusions shall apply notwithstanding any requirement under Chapter 4509. of the Revised Code.

(B)(1) An insurer providing an automobile insurance policy that excludes the coverage described in division (A) of this section shall have no duty to defend or indemnify any claim expressly excluded under the policy. Nothing in this chapter shall be construed to invalidate or limit a provision contained in an automobile insurance policy that excludes coverage for vehicles that are used to carry persons or property for a charge or that are available for hire by the public.

(2) If an insurer providing a policy of automobile insurance defends or indemnifies a claim against a transportation network company driver that is excluded under the terms of the policy, the insurer shall have a right of contribution against any other insurer that provides automobile insurance to the driver in satisfaction of the insurance coverage requirements of section 3942.02 of the Revised Code at the time of the loss.

(C)(1) Nothing in this chapter implies or requires 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 driver is engaged in transportation network company services, or while the driver otherwise uses a vehicle to transport passengers for compensation.

(2) Nothing in this chapter shall be construed to preclude an insurer from providing coverage for a transportation network company driver's vehicle, if the insurer chooses to do so by contract or endorsement.

(D) In a claims coverage investigation, a transportation network company and any insurer providing automobile insurance pursuant to section 3942.02 of the Revised Code shall cooperate to facilitate the exchange of relevant information with directly interested parties and any personal insurer of the transportation network company driver, if applicable. The parties shall exchange, at minimum, the precise times that the 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 event resulting in the loss. The parties also shall disclose to one another a clear description of the coverage, exclusions, and limits provided under any automobile insurance maintained pursuant to section 3942.02 of the Revised Code and any other information reasonably necessary to determine insurance coverage.

(E)(1) Nothing in this chapter shall be construed to limit the right of a lender or secured party of a personal vehicle to require the transportation network company driver to maintain comprehensive or collision damage coverage, or both, or to show evidence of such coverage to the lender or secured party, for the personal vehicle during both of the following periods of time:

(a) When the driver is logged on to the transportation network company's digital network but is not performing transportation network company services;

(b) When the driver is performing transportation network company services.

(2) If the driver fails to maintain the required comprehensive or collision damage coverage, or to show evidence to the lender or secured party of the coverage upon reasonable request by the lender or secured party, the lender or secured party may obtain the coverage at the expense of the driver without prior notice to the driver.

(F) If a transportation network company's insurer makes a payment for a claim covered under comprehensive coverage or collision coverage, the transportation network company shall cause its insurer to issue the payment directly to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder on the vehicle.

Section 3942.04 | Disclosures to drivers.

• Effective: March 23, 2016
• Latest Legislation: House Bill 237 - 131st General Assembly

(A) Before a transportation network company first allows a transportation network company driver to accept a request for transportation network company services on the company's digital network, the company shall disclose in writing to the driver both of the following:

(1) The insurance coverage, including the types of coverage and limits for each type of coverage, that the transportation network company provides while the driver uses a personal vehicle in connection with transportation network company services;

(2) That, depending on the terms of the policy, the transportation network company driver's own personal automobile insurance policy might not provide any coverage while the driver uses a personal vehicle to provide or be available to provide transportation network services.

(B) In addition to the disclosures required in division (A) of this section, a transportation network company shall provide the following notice to a prospective driver in the prospective driver's terms of service before the company first allows the driver to accept a request for transportation network company services on the company's digital network:

"If the vehicle that you plan to use to provide transportation network company services for our transportation network company has a lien against it, you must notify the lienholder that you will be using the vehicle for transportation services that may violate the terms of your contract with the lienholder."