AB311 - Revises provisions relating to transportation network companies. (BDR 57-771)

A.B. 311 - *AB311* ASSEMBLY BILL NO. 311–ASSEMBLYMEMBER HAFEN FEBRUARY 27, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to transportation network companies. (BDR 57-771) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to transportation network companies; prohibiting an insurer from refusing to provide coverage under a policy of motor vehicle insurance because the insured is a driver for a transportation network company; requiring transportation network company insurance to provide medical payments coverage and uninsured and underinsured motorist coverage under certain circumstances; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires every owner of a motor vehicle which is registered in this 1 State to continuously provide motor vehicle insurance. (NRS 485.185) Existing law 2 defines the term “transportation network company” to mean an entity that uses a 3 digital network or software application service to connect a passenger to a driver or 4 monitored autonomous vehicle provider who can provide transportation services to 5 the passenger. (NRS 706A.050) Section 1 of this bill prohibits an insurer from 6 denying a claim that arises under a policy of motor vehicle insurance for any 7 accident or motor vehicle crash that occurs during the personal use of the motor 8 vehicle because the insured, claimant or group of insured or claimants is a driver 9 for a transportation network company. 10 Existing law requires a transportation network company or a driver for a 11 transportation network company to provide transportation network company 12 insurance, which may include coverage for medical payments and coverage for 13 uninsured or underinsured motorists. (NRS 690B.470) Section 2 of this bill 14 requires such transportation network company insurance to provide certain medical 15 payments coverage and uninsured and underinsured motorist coverage for any 16 occupant of the motor vehicle. 17 – 2 – - *AB311* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 690B of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. An insurer shall not, for any accident or motor vehicle 3 crash that occurs during the personal use of a motor vehicle, 4 refuse to provide coverage under or refuse to fulfill the obligations 5 of a policy of motor vehicle insurance that is held by an insured, 6 claimant or group of insured or claimants because the insured, 7 claimant or group of insured or claimants is a driver for a 8 transportation network company. 9 2. As used in this section: 10 (a) “Driver” has the meaning ascribed to it in NRS 706A.040. 11 (b) “Personal use of a motor vehicle” means any use of a 12 motor vehicle which is insured by the driver that occurs while the 13 driver is not: 14 (1) Providing transportation services; or 15 (2) Logged into the digital network or software application 16 service of the transportation network company and available to 17 receive requests for transportation services but is not otherwise 18 providing transportation services. 19 (c) “Transportation network company” has the meaning 20 ascribed to it in NRS 706A.050. 21 (d) “Transportation services” has the meaning ascribed to it in 22 NRS 706A.060. 23 Sec. 2. NRS 690B.470 is hereby amended to read as follows: 24 690B.470 1. Every transportation network company or driver 25 shall continuously provide, during any period in which the driver is 26 providing transportation services, transportation network company 27 insurance provided by an insurance company licensed by the 28 Division of Insurance of the Department of Business and Industry 29 and approved to do business in this State or a broker licensed 30 pursuant to chapter 685A of NRS or procured directly from a 31 nonadmitted insurer, as defined in NRS 685A.0375: 32 (a) For the payment of tort liabilities arising from the 33 maintenance or use of the motor vehicle: 34 (1) In an amount of not less than $1,500,000 for bodily injury 35 to or death of one or more persons and injury to or destruction of 36 property of others in any one accident or motor vehicle crash that 37 occurs while the driver is providing transportation services; 38 [(b)] (2) In an amount of not less than $50,000 for bodily injury 39 to or death of one person in any one accident or motor vehicle crash 40 that occurs while the driver is logged into the digital network or 41 software application service of the transportation network company 42 – 3 – - *AB311* and available to receive requests for transportation services but is 1 not otherwise providing transportation services; 2 [(c)] (3) Subject to the minimum amount for one person required 3 by [paragraph (b),] subparagraph (2), in an amount of not less than 4 $100,000 for bodily injury to or death of two or more persons in any 5 one accident or motor vehicle crash that occurs while the driver is 6 logged into the digital network or software application service of the 7 transportation network company and available to receive requests 8 for transportation services but is not otherwise providing 9 transportation services; and 10 [(d)] (4) In an amount of not less than $25,000 for injury to or 11 destruction of property of others in any one accident or motor 12 vehicle crash that occurs while the driver is logged into the digital 13 network or software application service of the transportation 14 network company and available to receive requests for 15 transportation services but is not otherwise providing transportation 16 services [, 17  for the payment of tort liabilities arising from the maintenance or 18 use of the motor vehicle.] ; 19 (b) In an amount of not less than $10,000 for the medical 20 payments coverage of any occupant of the motor vehicle in any 21 one accident or motor vehicle crash that occurs while the driver is: 22 (1) Providing transportation services; or 23 (2) Logged into the digital network or software application 24 service of the transportation network company and available to 25 receive requests for transportation services but is not otherwise 26 providing transportation services; and 27 (c) In an amount of not less than $1,000,000 for uninsured 28 and underinsured motorist coverage for any occupant of the motor 29 vehicle in any one accident or motor vehicle crash that occurs 30 while the driver is: 31 (1) Providing transportation services; or 32 (2) Logged into the digital network or software application 33 service of the transportation network company and available to 34 receive requests for transportation services but is not otherwise 35 providing transportation services. 36 2. Every monitored autonomous vehicle provider shall 37 continuously provide, during any period in which a monitored 38 autonomous vehicle provider is operating a monitored autonomous 39 vehicle, transportation network company insurance provided by an 40 insurance company licensed by the Division of Insurance of the 41 Department of Business and Industry and approved to do business in 42 this State or a broker licensed pursuant to chapter 685A of NRS or 43 procured directly from a nonadmitted insurer, as defined in NRS 44 685A.0375, in an amount of not less than $1,500,000 for bodily 45 – 4 – - *AB311* injury to or destruction of property of others in any one accident or 1 motor vehicle crash that occurs while the monitored autonomous 2 vehicle provider is operating a monitored autonomous vehicle for 3 the payment of tort liabilities arising from the maintenance or use of 4 the monitored autonomous vehicle. 5 3. The transportation network company insurance required by 6 subsection 1 or 2, as applicable, may be provided through one or a 7 combination of insurance policies provided by the transportation 8 network company, the driver, the monitored autonomous vehicle 9 provider, both the transportation network company and the driver or 10 both the transportation network company and the monitored 11 autonomous vehicle provider. 12 4. Every transportation network company shall continuously 13 provide, during any period in which the driver or monitored 14 autonomous vehicle provider is providing transportation services, 15 transportation network company insurance provided by an insurance 16 company licensed by the Division of Insurance of the Department of 17 Business and Industry and approved to do business in this State or a 18 broker licensed pursuant to chapter 685A of NRS or procured 19 directly from a nonadmitted insurer, as defined in NRS 685A.0375, 20 which meets the requirements of subsection 1 or 2, as applicable, as 21 primary insurance if the insurance provided by the driver or 22 monitored autonomous vehicle provider: 23 (a) Lapses; or 24 (b) Fails to meet the requirements of subsection 1 or 2, as 25 applicable. 26 5. Notwithstanding the provisions of NRS 485.185 and 27 485.186 which require the owner or operator of a motor vehicle to 28 provide insurance, transportation network company insurance shall 29 be deemed to satisfy the requirements of NRS 485.185 or 485.186, 30 as appropriate, regardless of whether the insurance is provided by 31 the transportation network company, the driver, the monitored 32 autonomous vehicle provider, both the transportation network 33 company and the driver or both the transportation network company 34 and the monitored autonomous vehicle provider, if the 35 transportation network company insurance otherwise satisfies the 36 requirements of NRS 485.185 or 485.186, as appropriate. 37 6. In addition to the coverage required pursuant to 38 [subsection] : 39 (a) Subsection 1 , [or 2, as applicable,] a policy of transportation 40 network company insurance may include additional coverage, 41 including, without limitation, [coverage for medical payments, 42 coverage for uninsured or underinsured motorists,] comprehensive 43 coverage and collision coverage. 44 – 5 – - *AB311* (b) Subsection 2, a policy of transportation network company 1 insurance may include additional coverage, including, without 2 limitation, coverage for medical payments, coverage for uninsured 3 or underinsured motorists, comprehensive coverage and collision 4 coverage. 5 7. An insurer who provides transportation network company 6 insurance shall not require a policy of insurance for the operation of 7 a motor vehicle required pursuant to NRS 485.185 or 485.186, as 8 appropriate, to deny a claim before the transportation network 9 company insurance provides coverage for a claim. 10 8. An insurer who provides transportation network company 11 insurance has a duty to defend and indemnify the driver or 12 monitored autonomous vehicle provider and the transportation 13 network company. 14 9. An insurer who provides transportation network company 15 insurance which includes comprehensive coverage or collision 16 coverage for the operation of a motor vehicle against which a 17 lienholder holds a lien shall issue any payment for a claim under 18 such coverage: 19 (a) Directly to the person who performs repairs upon the 20 vehicle; or 21 (b) Jointly to the owner of the vehicle and the lienholder. 22 10. A transportation network company that provides 23 transportation network company insurance for a motor vehicle is not 24 deemed to be the owner of the motor vehicle. 25 11. As used in this section [, “monitored] : 26 (a) “Medical payments coverage” means coverage for the 27 payment of reasonable and necessary hospital and medical 28 expenses resulting from an accident or motor vehicle crash. 29 (b) “Monitored autonomous vehicle” has the meaning ascribed 30 to it in NRS 706A.045. 31 (c) “Uninsured and underinsured motorist coverage” means 32 the coverage described in subsection 2 of NRS 687B.145. 33 H