S1222B1646A05354 LKK:EJH 07/06/22 #90 A05354
AMENDMENTS TO SENATE BILL NO. 1222
Sponsor: REPRESENTATIVE SAYLOR
Printer's No. 1646
Amend Bill, page 1, line 20, by inserting after
"requirements"
; and providing for peer-to-peer carsharing
Amend Bill, page 23, by inserting between lines 9 and 10
Section 7. The act is amended by adding an article to read:
ARTICLE XXVIII
PEER-TO-PEER CARSHARING
Sec.
28 01. Scope of article.
28 02. Intent.
28 03. Definitions.
28 04. Insurance.
28 05. Consumer protection disclosures.
28 06. Driver's license verification.
28 07. Responsibility for equipment.
28 08. Automobile safety recalls.
28 09. Regulations.
§ 28 01. Scope of article.
This article relates to peer-to-peer carsharing .
§ 28 02. Intent.
This article is intended to govern the intersection of peer-
to-peer car services and the State-regulated business of
insurance. Nothing in this article shall be construed to extend
beyond insurance or have implications for other law of this
State, including motor vehicle regulation, airport regulation or
taxation.
§ 28 03. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"C arsharing delivery period." The period of time during
which a shared vehicle is being delivered to the location of the
carsharing start time, if applicable, as documented by a
governing carsharing program agreement.
"Carsharing period." The period of time that commences with
a carsharing delivery period or, if there is no carsharing
delivery period, that commences with a carsharing start time and
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in either case ends at a carsharing termination time.
"Carsharing program agreement." The terms and conditions
applicable to a shared vehicle owner and a shared vehicle driver
that govern the use of a shared vehicle through a peer-to-peer
carsharing program. The term does not include a rental car
agreement.
"Carsharing start time." The time when a shared vehicle
becomes subject to the control of the shared vehicle driver at
or after the time the reservation of the shared vehicle is
scheduled to begin as documented in the records of a peer-to-
peer carsharing program.
"Carsharing termination time." The earliest of the following
events:
(1) the expiration of the agreed-upon period of time
established for the use of a shared vehicle according to the
terms of the carsharing program agreement if the shared
vehicle is delivered to the location agreed upon in the
carsharing program agreement;
(2) a shared vehicle is returned to a location as
alternatively agreed upon by the shared vehicle owner and
shared vehicle driver as communicated through a peer-to-peer
carsharing program, which alternatively agreed-upon location
shall be incorporated into the carsharing program agreement;
or
(3) a shared vehicle owner or the shared vehicle owner's
authorized designee, takes possession and control of the
shared vehicle.
"Peer-to-peer carsharing ." The authorized use of a vehicle
by an individual other than the vehicle's owner through a peer-
to-peer carsharing program. The term does not include a rental
car obtained through a rental car company.
"Peer-to-peer carsharing program." A business platform that
connects vehicle owners with drivers to enable the sharing of
vehicles for financial consideration.
"Rental car" or "rental vehicle." A private passenger motor
vehicle designed to transport 15 or fewer passengers or a truck,
trailer or semitrailer used in the transportation of property
other than commercial freight, that is rented without a driver
and is part of a fleet of five or more such vehicles used for
that purpose, owned or leased by the same person or entity.
"Rental car company." A business entity engaged in the
business of renting rental vehicles in this Commonwealth.
"Shared vehicle." A vehicle that is available for sharing
through a peer-to-peer carsharing program. The term does not
include a rental car or rental vehicle.
"Shared vehicle driver." An individual who has been
authorized to drive a shared vehicle by the shared vehicle owner
under a carsharing program agreement.
"Shared vehicle owner." The registered owner, or a person or
entity designated by the registered owner, of a vehicle made
available for sharing to shared vehicle drivers through a peer-
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to-peer carsharing program.
§ 28 04. Insurance.
(a) Insurance coverage during carsharing period.--
(1) A peer-to-peer carsharing program shall assume
liability, except as provided under paragraph (2), of a
shared vehicle owner for bodily injury or property damage to
third parties or uninsured and underinsured motorist or
personal injury protection losses during the carsharing
period in an amount stated in the carsharing program
agreement which amount may not be less than those specified
in 75 Pa.C.S. Ch. 17 (relating to financial responsibility).
(2) Notwithstanding the definition of " carsharing
termination time," the assumption of liability under
paragraph (1) of this subsection does not apply to a shared
vehicle owner when:
(i) the shared vehicle owner makes an intentional or
fraudulent material misrepresentation or omission to the
peer-to-peer carsharing program before the carsharing
period in which the loss occurred; or
(ii) acting in concert with a shared vehicle driver
who fails to return the shared vehicle pursuant to the
terms of carsharing program agreement.
(3) Notwithstanding the definition of " carsharing
termination time," the assumption of liability under
paragraph (1) shall apply to bodily injury, property damage,
uninsured and underinsured motorist or personal injury
protection losses by damaged third parties required by 75
Pa.C.S. Ch. 17.
(4) A peer-to-peer carsharing program shall ensure that,
during each carsharing period, the shared vehicle owner and
the shared vehicle driver are insured under a motor vehicle
liability insurance policy that provides insurance coverage
in amounts no less than the minimum amounts specified in 75
Pa.C.S. Ch. 17 and:
(i) recognizes that the shared vehicle insured under
the policy is made available and used through a peer-to-
peer carsharing program; or
(ii) does not exclude use of a shared vehicle by a
shared vehicle driver.
(5) The insurance described under paragraph (4) may be
satisfied by motor vehicle liability insurance maintained by:
(i) a shared vehicle owner;
(ii) a shared vehicle driver;
(iii) a peer-to-peer carsharing program; or
(iv) a shared vehicle owner, a shared vehicle driver
and a peer-to-peer carsharing program.
(6) The insurance described under paragraph (5) that
satisfies the insurance requirement of paragraph (4) shall be
primary during each carsharing period and in the event that a
claim occurs in another state with minimum financial
responsibility limits higher than specified in 75 Pa.C.S. Ch.
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17, during the carsharing period, the coverage maintained
under paragraph (5) shall satisfy the difference in minimum
coverage amounts, up to the applicable policy limits.
(7) The insurer, insurers or peer-to-peer carsharing
program providing coverage under paragraph (4) or (5) shall
assume primary liability for a claim when:
(i) a dispute exists as to who was in control of the
shared vehicle at the time of the loss and the peer-to-
peer carsharing program does not have available, did not
retain, or fails to provide the information required by
subsection (d); or
(ii) a dispute exists as to whether the shared
vehicle was returned to the alternatively agreed-upon
location as required by this article .
(8) If insurance maintained by a shared vehicle owner or
shared vehicle driver in accordance with paragraph (5) has
lapsed or does not provide the required coverage, insurance
maintained by a peer-to-peer carsharing program shall provide
the coverage required by paragraph (4) beginning with the
first dollar of a claim and have the duty to defend such
claim except under circumstances as provided under paragraph
(2).
(9) Coverage under an automobile insurance policy
maintained by the peer-to-peer carsharing program shall not
be dependent on another automobile insurer first denying a
claim nor shall another automobile insurance policy be
required to first deny a claim.
(10) Nothing in this section shall be construed to:
(i) limit the liability of the peer-to-peer
carsharing program for an act or omission of the peer-to-
peer carsharing program itself that results in injury to
a person as a result of the use of a shared vehicle
through a peer-to-peer carsharing program; or
(ii) limit the ability of the peer-to-peer
carsharing program to, by contract, seek indemnification
from a shared vehicle owner or a shared vehicle driver
for economic loss sustained by a peer-to-peer carsharing
program resulting from a breach of the terms and
conditions of the carsharing program agreement.
(b) Notification of implications of lien.--At the time when
a vehicle owner registers as a shared vehicle owner on a peer-
to-peer carsharing program and prior to the time when the shared
vehicle owner makes a shared vehicle available for carsharing on
the peer-to-peer carsharing program, the peer-to-peer carsharing
program shall notify the shared vehicle owner that, if the
shared vehicle has a lien against it, the use of the shared
vehicle through a peer-to-peer carsharing program, including use
without physical damage coverage, may violate the terms of the
contract with the lienholder.
(c) Exclusions in motor vehicle liability insurance
policies.--
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(1) An authorized insurer that writes motor vehicle
liability insurance in this Commonwealth may exclude any and
all coverage and the duty to defend or indemnify for a claim
afforded under a shared vehicle owner's motor vehicle
liability insurance policy, including:
(i) liability coverage for bodily injury and
property damage;
(ii) personal injury protection coverage;
(iii) uninsured and underinsured motorist coverage;
(iv) medical payments coverage;
(v) comprehensive physical damage coverage; and
(vi) collision physical damage coverage.
(2) Nothing in this article shall be construed to:
(i) Invalidate or limit an exclusion contained in a
motor vehicle liability insurance policy, including an
insurance policy in use or approved for use that excludes
coverage for motor vehicles made available for rent,
sharing or hire or for any business use.
(ii) Invalidate, limit or restrict an insurer's
ability under existing law to underwrite any insurance
policy.
(iii) Invalidate, limit or restrict an insurer's
ability under existing law to cancel and nonrenew policy.
(d) Recordkeeping and use of vehicle in carsharing .--
(1) A peer-to-peer carsharing program shall collect and
verify records pertaining to the use of a vehicle, including
times used, carsharing period pickup and drop off locations,
fees paid by the shared vehicle driver and revenues received
by the shared vehicle owner and provide that information upon
request to the shared vehicle owner, the shared vehicle
owner's insurer or the shared vehicle driver's insurer to
facilitate a claim coverage investigation, settlement,
negotiation or litigation.
(2) The peer-to-peer carsharing program shall retain the
records for a time period not less than the applicable
personal injury statute of limitations.
(e) Exemption and vicarious liability.--A peer-to-peer
carsharing program and a shared vehicle owner shall be exempt
from vicarious liability in accordance with 49 U.S.C. § 30106
(relating to rented or leased motor vehicle safety and
responsibility) and under any State or local law that imposes
liability solely based on vehicle ownership.
(f) Contribution against indemnification.--A motor vehicle
insurer that defends or indemnifies a claim against a shared
vehicle that is excluded under the terms of the policy shall
have the right to seek recovery against the motor vehicle
insurer of the peer-to-peer carsharing program if the claim is:
(1) Made against the shared vehicle owner or the shared
vehicle driver for loss or injury that occurs during the
carsharing period.
(2) Excluded under the terms of the policy.
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(g) Insurable interest.--
(1) Notwithstanding any other law, statute, rule or
regulation to the contrary, a peer-to-peer carsharing program
shall have an insurable interest in a shared vehicle during
the carsharing period.
(2) Nothing in this subsection shall be construed as
creating liability on a peer-to-peer carsharing program to
maintain the coverage mandated by subsection (a).
(3) A peer-to-peer carsharing program may own and
maintain as the named insured one or more policies of motor
vehicle liability insurance that provides coverage for:
(i) liabilities assumed by the peer-to-peer
carsharing program under a carsharing program agreement;
(ii) liability of the shared vehicle owner;
(iii) damage or loss to the shared vehicle; or
(iv) liability of the shared vehicle driver.
§ 28 05. Consumer protection disclosures.
A carsharing program agreement shall disclose to the shared
vehicle owner and the shared vehicle driver:
(1) A right of the peer-to-peer carsharing program to
seek indemnification from the shared vehicle owner or the
shared vehicle driver for economic loss sustained by the
peer-to-peer carsharing program resulting from a breach of
the terms and conditions of the carsharing program agreement.
(2) That a motor vehicle liability insurance policy
issued to the shared vehicle owner for the shared vehicle or
to the shared vehicle driver does not provide a defense or
indemnification for a claim asserted by the peer-to-peer
carsharing program.
(3) That the peer-to-peer carsharing program's insurance
coverage on the shared vehicle owner and the shared vehicle
driver is in effect only during each carsharing period and
that, for any use of the shared vehicle by the shared vehicle
driver after the carsharing termination time, the shared
vehicle driver and the shared vehicle owner may not have
insurance coverage.
(4) The daily rate, fees and, if applicable, insurance
or protection package costs that are charged to the shared
vehicle owner or the shared vehicle driver.
(5) That the shared vehicle owner's motor vehicle
liability insurance may not provide coverage for a shared
vehicle.
(6) An emergency telephone number to personnel capable
of fielding roadside assistance and other customer service
inquiries.
(7) If there are conditions under which a shared vehicle
driver must maintain a personal automobile insurance policy
with certain applicable coverage limits on a primary basis in
order to book a shared vehicle.
§ 28 06. Driver's license verification.
(a) Conditions for carsharing program agreement.--A peer-to-
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peer carsharing program may not enter into a carsharing program
agreement with a driver unless the driver who will operate the
shared vehicle:
(1) holds a driver's license issued by the Department of
Transportation that authorizes the driver to operate vehicles
of the class of the shared vehicle; or
(2) is a nonresident who:
(i) has a driver's license issued by the state or
country of the driver's residence that authorizes the
driver in that state or country to drive vehicles of the
class of the shared vehicle; and
(ii) is at least the same age as that required of a
resident to drive; or
(3) otherwise is specifically authorized by law to drive
vehicles of the class of the shared vehicle.
(b) Data retention.--A peer-to-peer carsharing program shall
keep a record of:
(1) The name and address of the shared vehicle driver.
(2) The number of the driver's license of the shared
vehicle driver and each other person, if any, who will
operate the shared vehicle.
(3) The place of issuance of the driver's license.
§ 28 07. Responsibility for equipment.
A peer-to-peer carsharing program shall have sole
responsibility for equipment, such as a GPS system or other
special equipment that is put in or on the shared vehicle to
monitor or facilitate the carsharing transaction, and shall
agree to indemnify and hold harmless the shared vehicle owner
for damage to or theft of the equipment during the carsharing
period not caused by the shared vehicle owner. The peer-to-peer
carsharing program has the right to seek indemnity from the
shared vehicle driver for loss or damage to the equipment that
occurs during the carsharing period.
§ 28 08. Automobile safety recalls.
(a) Verification and notification.--At the time when a
vehicle owner registers as a shared vehicle owner on a peer-to-
peer carsharing program and prior to the time when the shared
vehicle owner makes a shared vehicle available for carsharing on
the peer-to-peer carsharing program, the peer-to-peer carsharing
program shall:
(1) Verify that the shared vehicle does not have any
safety recalls on the vehicle for which the repairs have not
been made.
(2) Notify the shared vehicle owner of the requirements
under subsection (b).
(b) Effect of safety recall.--
(1) If the shared vehicle owner has received an actual
notice of a safety recall on the vehicle, a shared vehicle
owner may not make the vehicle available as a shared vehicle
on a peer-to-peer carsharing program until the safety recall
repair has been made.
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(2) If a shared vehicle owner receives an actual notice
of a safety recall on a shared vehicle while the shared
vehicle is available on the peer-to-peer carsharing program,
the shared vehicle owner shall remove the shared vehicle as
available on the peer-to-peer carsharing program, as soon as
practicably possible after receiving the notice of the safety
recall and until the safety recall repair has been made.
(3) If a shared vehicle owner receives an actual notice
of a safety recall while the shared vehicle is being used in
the possession of a shared vehicle driver, as soon as
practicably possible after receiving the notice of the safety
recall, the shared vehicle owner shall notify the peer-to-
peer carsharing program about the safety recall so that the
shared vehicle owner may address the safety recall repair.
§ 28 09. Regulations.
The Insurance Commissioner may promulgate rules and
regulations that are not inconsistent with and necessary to
administer and enforce the provisions of this article .
Amend Bill, page 23, line 10, by striking out "7" and
inserting
8
Amend Bill, page 23, line 10, by striking out "in 60 days."
and inserting
as follows:
(1) The following shall take effect immediately:
(i) This section.
(ii) The addition of Article XXVIII of the act.
(2) The remainder of this act shall take effect in 60
days.
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