Lowers minimum amount of uninsured and underinsured motorist coverage for transportation network companies and transportation network company drivers.

A1507

ASSEMBLY, No. 1507

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

Co-Sponsored by:

Assemblywoman Kane, Assemblymen Schnall, Bailey and
Karabinchak

SYNOPSIS

���� Lowers minimum amount of uninsured and underinsured
motorist coverage for transportation network companies and transportation
network company drivers.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning uninsured and underinsured motorist
coverage and amending P.L.2017, c.26.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� Section 10 of P.L.2017,
c.26 (C.39:5H-10) is amended to read as follows:

���� 10.� a.�������� On or before
the effective date of P.L.2017, c.26 (C.39:5H-1 et seq.), a transportation
network company driver, transportation network company, or any combination of
the two shall maintain primary automobile insurance that recognizes that the
driver is a transportation network company driver, or otherwise uses a personal
vehicle to provide prearranged rides, and covers the driver: (1) while the
driver is logged on to the transportation network company's digital network but
is not providing a prearranged ride; or (2) while the driver is providing a
prearranged ride.

���� b.��� Whenever a
transportation network company driver is logged on to the transportation
network company's digital network and is available to receive a prearranged
ride request, but is not providing a prearranged ride, the transportation
network company driver, transportation network company, or any combination of
the two shall maintain the following insurance coverage:

���� (1)�� primary automobile
liability insurance in the amount of at least $50,000 for death or bodily
injury per person, $100,000 for death or bodily injury per incident, and
$25,000 for property damage;

���� (2)�� primary personal injury
protection benefits that provide coverage amounts selected pursuant to section
4 of P.L.1972, c.70 (C.39:6A-4); and

���� (3)�� uninsured and
underinsured motorist coverage to the extent required pursuant to section 2 of
P.L.1968, c.385 (C.17:28-1.1).

���� c.���� Whenever a
transportation network company driver is providing a prearranged ride, the
transportation network company driver, transportation network company, or any
combination of the two shall maintain the following insurance coverage:

���� (1)�� primary automobile
liability insurance in the amount of at least $1,500,000 for death, bodily
injury, and property damage;

���� (2)�� primary automobile
insurance for medical payments benefits in an amount of at least $10,000 per
person per incident, which shall only apply to and provide coverage for the
benefit of the transportation network company driver; and

���� (3)�� uninsured and
underinsured motorist coverage
[
in
an amount of at least $1,500,000
]

to the extent required pursuant to subsection a. of section 2 of P.L.1968,
c.385 (C.17:28-1.1)
.

���� d.��� If the insurance
coverage maintained by a transportation network company driver pursuant to
subsections b. and c. of this section has lapsed or does not provide the
required coverage, insurance maintained by the transportation network company
shall provide the coverage required by subsections b. and c. of this section
beginning with the first dollar of a claim and the transportation network
company shall have the duty to defend the claim.

���� e.���� Coverage under an
automobile insurance policy maintained by the transportation network company
shall not be dependent upon a private passenger automobile insurer first
denying a claim nor shall a private passenger automobile insurance policy be
required to first deny a claim.

���� f.���� Insurance coverage
required by this section may be obtained from an insurance company duly
licensed to transact business under the insurance laws of this State or by an
eligible surplus lines insurer under section 11 of P.L.1960, c.32
(C.17:22-6.45).

���� g.��� The coverage required
pursuant to subsections b. and c. of this section shall be deemed to meet the
financial responsibility requirements of the "Motor Vehicle
Security-Responsibility Law," P.L.1952, c.173 (C.39:6-23 et seq.),
P.L.1972, c.197 (C.39:6B-1 et seq.), and P.L.1972, c.70 (C.39:6A-1 et seq.).

���� h.��� A transportation network
company driver shall carry proof of insurance required pursuant to subsections
b. and c. of this section at all times while using a personal vehicle in
connection with a transportation network company's digital network.� In the event
of an accident, a transportation network company driver shall, upon request,
provide insurance coverage information to the directly interested parties,
automobile insurers, and investigating law enforcement officers.� The insurance
coverage information may be displayed or provided in either paper or electronic
form as provided in R.S.39:3-29.� A transportation network company driver
shall, upon request, disclose to the directly interested parties, automobile
insurers, and investigating law enforcement officers whether the driver was
logged on to a digital network as a driver or whether the driver was providing
a prearranged ride at the time of the accident.

���� i.���� If a transportation
network company's insurer makes a payment for a claim for damage to a motor
vehicle in which a lienholder holds a security interest, then the
transportation network company shall cause its insurer to issue the payment
directly to the business repairing the motor vehicle or jointly to the owner of
the motor vehicle and the primary lienholder on the covered motor vehicle.

���� j.���� The limitation on
lawsuit option set forth in subsection a. of section 8 of P.L.1972, c.70
(C.39:6A-8) shall not be assertable by a transportation network company or a
transportation network company driver in any action for damages arising from a
prearranged ride, or be asserted against any party not receiving personal
injury protection benefits in any action for damages arising from a prearranged
ride.

(cf: P.L.2017, c.26, s.10)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill lowers the minimum
amount of uninsured and underinsured motorist coverage required to be
maintained by a transportation network company driver, a transportation network
company, or any combination of the two whenever a transportation network company
driver is providing a prearranged ride.� Under the bill, the required coverage
would be lowered from $1,500,000 to (1) an amount or limit of $25,000 for plans
issued or renewed on or after January 1, 2023 but prior to January 1, 2026, and
$35,000 for plans issued or renewed on or after January 1, 2026, exclusive of
interest and costs, on account of injury to, or death of, one person, in any
one accident; (2) an amount or limit, subject to such limit for any one person
so injured or killed, of $50,000 for plans issued or renewed after January 1,
2023 but prior to January 1, 2026, and $70,000 for plans issued or renewed
after January 1, 2026, exclusive of interest and costs, on account of injury to
or death of, more than one person, in any one accident; and (3) an amount or
limit of $25,000, exclusive of interest and costs, for damage to property in
any one accident for plans issued or renewed after January 1, 2023.