Definitions

Liability coverage

Medical payments coverage

Damage to your auto

Definitions

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 I.Definitions

The following definition is added:

"Transportation network platform" means an online-enabled application or digital network used to connect passengers with drivers using vehicles for the purpose of providing prearranged transportation services for compensation.

 Analysis

 The definition of exactly what is a "transportation network platform" is key to the exclusion of coverage for peer-to-peer ride-sharing activities. The definition explains that it is an online-enabled application, such as can be used by a smartphone or digital network to connect drivers using vehicles to provide rides to passengers looking for rides. The transfer of funds occurs through the online applications, so that neither the driver nor passenger need to exchange funds directly. Many drivers see this new technology as a fast way to earn extra money, without realizing that they are not covered under their auto policies. Many states are trying to enact legislation for transportation network companies (TNCs), and while carriers have not be dictated to provide coverage, it needs to be clear in the policy that this behavior is not covered.

 Liability Coverage

 II.Part A – Liability Coverage

Exclusion A.5. is replaced by the following:

We do not provide Liability Coverage for any "insured":

5.For that "insured's" liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This includes but is not limited to any period of time a vehicle is being used by any "insured" who is logged into a "transportation network platform" as a driver, whether or not a passenger is "occupying" the vehicle.

This exclusion (A.5.) does not apply to a share-the-expense car pool.

 Analysis

 The first exclusion applies to liability coverage and simply expands the existing exclusion for the use of a vehicle for public or livery service to include the use of a vehicle while being logged into a TNC as a driver, whether or not a passenger is present. This is significant, since many TNCs will provide coverage once the driver has picked up a passenger, but do not provide coverage when the driver is looking for a passenger. The driver could very well be driving around congested areas at peak times looking for a rider, exposing the auto to a larger chance of a loss. Personal insurers have never intended to provide coverage for any service similar to taxi services. This clarifies the livery exclusion so that there is no confusion—using your vehicle to drive for Uber, Lyft, or a similar company is excluded under the Personal Auto Policy.

 Medical Payments Coverage

 III.Part B – Medical Payments Coverage Exclusion 2. is replaced by the following:

We do not provide Medical Payments Coverage for any "insured" for "bodily injury":

2. Sustained while "occupying" "your covered auto" when it is being used as a public or livery conveyance. This includes but is not limited to any period of time "your covered auto" is being used by any "insured" who is logged into a "transportation network platform" as a driver, whether or not a passenger is "occupying" the vehicle.

This exclusion (2.) does not apply to a share-the-expense car pool.

 Analysis

 While medical payments in the Personal Auto Policy is designed to provide coverage to the insured and others while riding in the auto, this exclusion removes that coverage. Using the vehicle for providing rides for profit is again too similar to a taxi service, and the Personal Auto Policy was not designed to provide coverage for extensive or even minimal use of the vehicle to provide rides to others. Driving for a TNC broadens the exposure of the insured to injury beyond what was contemplated in the creation of the policy. An exception applies for share-the-expense. With carpools, passengers take turns driving and share the expenses; they are also going to work and then home again and are not spending the day driving around looking for passengers.

 Damage to Your Auto

 IV.Part D – Coverage For Damage To Your Auto

Exclusion 1. is replaced by the following:

We will not pay for:

1.Loss to "your covered auto" or any "nonowned auto" which occurs while it is being used as a public or livery conveyance. This includes but is not limited to any period of time "your covered auto" or any "nonowned auto" is being used by any person who is logged into a "transportation network platform" as a driver, whether or not a passenger is "occupying" the vehicle.

This exclusion (1.) does not apply to a share-the-expense car pool.

 Analysis

 Not only does this endorsement exclude liability and medical payments coverage if the insured is driving for a TNC, but damage to the insured's auto is excluded as well. Again, share-the-ride carpools are excepted, but driving for a TNC exposes the vehicle to a greater chance of loss that the carrier does not want to provide, so it is excluded. Both owned and nonowned autos being driven while logged into a TNC are excluded, whether or not a passenger is present. The presence of a passenger does not decrease the risk.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

September 9, 2015