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HOUSE AMENDED
PRIOR PRINTER'S NO. 1646
PRINTER'S NO. 1853
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1222
Session of
2022
INTRODUCED BY DiSANTO, STREET, PHILLIPS-HILL, CAPPELLETTI,
PITTMAN, FONTANA AND KANE, MAY 16, 2022
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JULY 7, 2022
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in insurance holding companies,
further providing for definitions, for acquisition of control
of or merger or consolidation with domestic insurer and for
registration of insurers, providing for group capital
calculation exemptions, further providing for standards and
management of an insurer within an insurance holding company
system, for group-wide supervision for international
insurance groups and for confidential treatment and providing
for compliance with group capital calculation and liquidity
stress test requirements; AND PROVIDING FOR PEER-TO-PEER
CARSHARING.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1401 of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921, is amended
by adding definitions to read:
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Section 1401. Definitions.--As used in this article, and for
the purposes of this article only, the following words and
phrases shall have the meanings given to them in this section:
* * *
"Group-wide supervisor." The regulatory official authorized
to engage in conducting and coordinating group-wide supervision
activities who is determined or acknowledged by the department
under section 1406.2 to have sufficient significant contacts
with an internationally active insurance group.
* * *
"Internationally active insurance group." An insurance
holding company system that:
(1) Includes an insurer registered under section 1404.
(2) Meets each of the following criteria:
(i) Has premiums written in at least three countries.
(ii) Has as the percentage of the gross premiums written
outside the United States at least ten per centum (10%) of the
insurance holding company system's total gross written premiums.
(iii) Based on a three-year rolling average, has total
assets of at least fifty billion dollars ($50,000,000,000) or
total gross written premiums of at least ten billion dollars
($10,000,000,000).
"Lead state." The state responsible for coordination and
communication among state regulators regarding oversight of an
insurance group, as determined by the department in consultation
with other regulators with domestic insurers in the insurance
group.
* * *
"NAIC liquidity stress test framework." A separate NAIC
publication that includes the following information as adopted
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by the NAIC and as amended by the NAIC from time to time in
accordance with the procedures adopted by the NAIC:
(1) A history of the NAIC's development of regulatory
liquidation stress testing.
(2) The scope criteria applicable for a specific data year.
(3) The liquidity stress test instructions and reporting
templates for a specific data year.
(4) The scope criteria, instructions and reporting
templates.
* * *
"Scope criteria." As detailed in the NAIC liquidity stress
test framework, the designated exposure bases, along with
minimum magnitudes, for the specified data year which are used
to establish a preliminary list of insurers considered scoped
into the NAIC liquidity stress test framework for that data
year.
* * *
Section 2. Sections 1402(b)(11.1) and 1404(a)(1), (d) and
(k.1) of the act are amended to read:
Section 1402. Acquisition of Control of or Merger or
Consolidation with Domestic Insurer.--* * *
(b) The statement to be filed with the department under this
section shall be made under oath or affirmation and shall
contain the following information:
* * *
(11.1) An agreement by the person required to file the
statement referred to in subsection (a) that it will provide the
annual enterprise risk report specified in section [1404(k.1)]
1404(k.1)(1) as long as control exists.
* * *
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Section 1404. Registration of Insurers.--(a) (1) Every
insurer which is authorized to do business in this Commonwealth
and which is a member of an insurance holding company system
shall register with the department, except a foreign insurer
subject to registration requirements and standards adopted by
statute or regulation in the jurisdiction of its domicile which
are substantially similar to those contained in this section and
section 1405(a)(1) and (2), (b) and [(d)] (d)(1). Each
registered insurer shall keep current the information required
to be disclosed in its registration statement by reporting all
material changes or additions within fifteen (15) days after the
end of the month in which it learns of each such change or
addition.
* * *
(d) (1) No information need be disclosed on the
registration statement filed pursuant to subsection (b) if such
information is not material for the purposes of this section.
(2) Unless the department by regulation or order provides
otherwise, sales, purchases, exchanges, loans or extensions of
credit, investments or guarantees involving one-half of one per
centum (0.5%) or less of an insurer's admitted assets as of the
thirty-first day of December next preceding shall not be deemed
material for purposes of this section.
(3) Paragraph (2) does not apply to the group capital
calculation or the liquidity stress test framework.
* * *
(k.1) (1) The ultimate controlling person of every insurer
subject to registration shall also file an annual enterprise
risk report. The report must, to the best of the ultimate
controlling person's knowledge and belief, identify the material
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risks within the insurance holding company system that could
pose enterprise risk to the insurer. The report must be filed
with the lead state regulator of the insurance holding company
system as determined by the procedures within the Financial
Analysis Handbook adopted by the NAIC. Beginning in 2014, and
every year thereafter, the report shall be filed by March 31 for
the previous calendar year.
(2) Except as provided in paragraph (3), the ultimate
controlling person of every insurer subject to registration
shall concurrently file with the registration an annual group
capital calculation report as directed by the lead state
regulator of the insurance holding company system. The report
shall be completed in accordance with the NAIC group capital
calculation instructions, which may permit the lead state
regulator to allow a controlling person that is not the ultimate
controlling person to file the group capital calculation. The
report shall be filed with the lead state regulator of the
insurance holding company system as directed by the commissioner
in accordance with the procedures outlined in the Financial
Analysis Handbook adopted by the NAIC.
(3) The following insurance holding company systems are not
required to file the group capital calculation:
(i) An insurance holding company system that has only one
insurer within the insurance holding company system structure,
only writes business in a domestic state and is only licensed in
a domestic state and assumes no business from any other insurer.
(ii) An insurance holding company system that is required to
perform a group capital calculation specified by the Federal
Reserve Board. The commissioner shall request the calculation
from the Federal Reserve Board under the terms of information
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sharing agreements in effect. If the Federal Reserve Board
cannot share the calculation with the commissioner, the
insurance holding company system is not exempt from the group
capital calculation filing.
(iii) An insurance holding company system whose group-wide
supervisor is located within a reciprocal jurisdiction as
defined in section 319.3(k) that recognizes the United States'
state regulatory approach to group supervision and group
capital.
(iv) An insurance holding company system:
(A) That provides information to the lead state regulator
that meets the requirements for accreditation under the NAIC
financial standards and accreditation program, either directly
or indirectly through the group-wide supervisor, who has
determined the information is satisfactory to allow the lead
state regulator to comply with the NAIC group supervision
approach, as detailed in the NAIC Financial Analysis Handbook.
(B) Whose group-wide supervisor, located outside the United
States and not in a reciprocal jurisdiction as defined in
section 319.3(k), recognizes and accepts the group capital
calculation as the worldwide group capital assessment for United
States insurance groups who operate in that reciprocal
jurisdiction.
(4) Notwithstanding paragraph (3)(iii) and (iv), the
commissioner, as the lead state regulator, shall require the
group capital calculation for United States based operations of
any non-United-States-based insurance holding company system
where, after necessary consultation with other supervisors or
officials, the group capital calculation is deemed appropriate
by the lead state regulator for prudential oversight and
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solvency monitoring purposes or for ensuring the competitiveness
of the insurance marketplace.
(5) In addition to and notwithstanding the entities
described in paragraph (3), the commissioner, as the lead state
regulator, has the discretion to exempt the ultimate controlling
person from filing the annual group capital calculation or
accept a limited group capital filing or report in accordance
with criteria specified in section 1404.1.
(6) If the commissioner, as the lead state regulator,
determines that an insurance holding company system no longer
meets one or more of the requirements of paragraph (3), the
insurance holding company system shall file the group capital
calculation at the next annual filing date unless given an
extension by the lead state regulator based on reasonable
grounds shown.
(7) The ultimate controlling person of an insurer subject to
registration and also scoped into the NAIC liquidity stress test
framework shall file the results of a specific year's liquidity
stress test with the lead state regulator of the insurance
holding company system in accordance with the procedures in the
NAIC Financial Analysis Handbook and the following standards:
(i) With regard to the development of the NAIC liquidity
stress test framework, the following standards are recognized:
(A) The NAIC liquidity stress test framework includes scope
criteria applicable to a specific data year.
(B) The scope criteria are reviewed at least annually by the
NAIC Financial Stability Task Force or its successor.
(C) Any change to the NAIC liquidity stress test framework
or to the data year for which the scope criteria are to be
measured shall be effective on January 1 of the year following
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the calendar year when the changes are adopted.
(D) Insurers meeting at least one threshold of the scope
criteria are considered scoped into the NAIC liquidity stress
test framework for the specified data year unless the lead state
regulator, in consultation with the NAIC Financial Stability
Task Force or its successor, determines the insurer should not
be scoped into the NAIC liquidity stress test framework for that
data year.
(E) Insurers that do not trigger at least one threshold of
the scope criteria are considered scoped out of the NAIC
liquidity stress test framework for the specified data year,
unless the lead state regulator, in consultation with the NAIC
Financial Stability Task Force or its successor, determines the
insurer should be scoped into the NAIC liquidity stress test
framework for that data year.
(ii) The performance of, and filing of the results from, a
specific year's NAIC liquidity stress test shall comply with the
NAIC liquidity stress test framework's instructions and
reporting templates for that year and, if applicable, with any
determinations by the lead state regulator and the NAIC
Financial Stability Task Force or its successor, provided within
the NAIC liquidity stress test framework.
* * *
Section 3. The act is amended by adding a section to read:
Section 1404.1. Group Capital Calculation Exemptions.-- (a)
The commissioner, as the lead state regulator, has the
discretion to exempt the ultimate controlling person from filing
the annual group capital calculation where the insurance holding
company system meets all of the following criteria:
(1) Has annual direct written and unaffiliated assumed
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premium, including international direct and assumed premium, but
excluding premiums reinsured with the Federal Crop Insurance
Corporation and Federal Flood Program, of less than one billion
dollars ($1,000,000,000).
(2) Has no insurers within the insurance holding company
system that are domiciled outside of the United States or one of
its territories.
(3) Has no banking, depository or other financial entity
that is subject to an identified regulatory capital framework
within the insurance holding company system.
(4) Attests that there have been no material changes in the
transactions between insurers and noninsurers in the insurance
holding company system during the last year.
(5) The noninsurers within the insurance holding company
system do not pose a material financial risk to the insurer's
ability to honor policyholder obligations.
(b) The commissioner, as the lead state regulator, has the
discretion to accept a limited group capital filing in lieu of
the group capital calculation if the insurance holding company
system has annual direct written and unaffiliated assumed
premiums, including international direct and assumed premiums,
but excluding premiums reinsured with the Federal Crop Insurance
Corporation and Federal Flood Program, of less than one billion
dollars ($1,000,000,000) and all of the following criteria are
met:
(1) The insurance holding company system has no insurers
that are domiciled outside of the United States or one of its
territories.
(2) The insurance holding company system does not include a
banking, depository or other financial entity that is subject to
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an identified regulatory capital framework.
(3) The insurance holding company system attests that there
have been no material changes in transactions between insurers
and noninsurers in the group during the last year and the
noninsurers within the insurance holding company system do not
pose a material financial risk to the insurer's ability to honor
policyholder obligations.
(c) For an insurance holding company system that has
previously met an exemption with respect to the group capital
calculation under subsections (a) and (b), the commissioner may
at any time require, as the lead state regulator, the ultimate
controlling person to file an annual group capital calculation,
completed in accordance with the NAIC group capital calculation
instructions if any of the following criteria are met:
(1) An insurer within the insurance holding company system
is in a company action level event under Article V of the act of
May 17, 1921 (P.L.789, No.285), known as "The Insurance
Department Act of 1921," or a similar standard for an insurer
outside the United States.
(2) An insurer within the insurance holding company system
meets one or more of the standards of an insurer deemed to be in
hazardous financial condition as described in Article V of "The
Insurance Department Act of 1921," and 31 Pa. Code Ch. 160
(relating to standards to define insurers deemed to be in
hazardous financial condition).
(3) An insurer within the insurance holding company system
otherwise exhibits qualities of a troubled insurer as determined
by the lead state regulator based on unique circumstances,
including the type and volume of business written, ownership and
organizational structure, Federal agency requests and
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international supervisor requests.
(d) A jurisdiction outside the United States is considered
to recognize and accept the group capital calculation if it
satisfies the following criteria:
(1) The jurisdiction meets the criteria under section
1404(k.1)(3)(iv) in accordance with the following:
(i) The jurisdiction is located outside of the United States
and recognizes the United States' state regulatory approach to
group supervision and group capital by providing confirmation
from a competent regulatory authority in the jurisdiction that
insurers and insurance groups whose lead state is accredited by
the NAIC under the NAIC Accreditation Program shall be subject
only to worldwide prudential insurance group-wide supervision,
including worldwide group governance, solvency and capital and
reporting, as applicable, by the lead state and will not be
subject to group-wide supervision, including worldwide group
governance, solvency and capital and reporting, at the level of
the worldwide parent undertaking of the insurance or reinsurance
group by the jurisdiction located outside the United States.
(ii) If no United-States-based insurance groups operate in
the jurisdiction outside the United States, that jurisdiction
outside the United States notifies the lead state regulator in
writing, with a copy to the IAIS, that the group capital
calculation is an acceptable international capital standard. The
notification shall serve as the confirmation required under
subparagraph (i).
(2) The entities located outside the United States'
jurisdiction provide confirmation by a competent regulatory
authority in the jurisdiction under paragraph (1)(ii) that
information regarding insurers and the parent, subsidiary or
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affiliated entities, if applicable, shall be provided to the
lead state regulator in accordance with a memorandum of
understanding or similar document between the commissioner and
the jurisdiction, including the IAIS multilateral memorandum of
understanding or other multilateral memoranda of understanding
coordinated by the NAIC. The commissioner shall determine, in
consultation with the NAIC committee process, if the
requirements of the information sharing agreements are in force.
(e) A list of jurisdictions outside the United States that
recognize and accept the group capital calculation will be
published through the NAIC committee process in accordance with
the following standards:
(1) A list of jurisdictions that recognize and accept the
group capital calculation under section 1404(k.1)(3)(iv), shall
be published through the NAIC committee process to assist the
lead state regulator in determining which insurers shall file an
annual group capital calculation. The list must clarify those
situations in which a jurisdiction is exempt from filing under
section 1404(k.1)(3)(iv). To assist with a determination under
section 1404(k.1)(3)(v), the list shall identify whether a
jurisdiction that is exempt under section 1404(k.1)(3)(iii) or
(iv) requires a group capital filing for any United-States-based
insurance group's operations in a jurisdiction outside the
United States.
(2) For a jurisdiction outside the United States that no
United-States-based insurance group operates, the confirmation
provided to meet the requirement of subsection (d)(1)(ii) will
serve as support for a recommendation to be published as a
jurisdiction that recognizes and accepts the group capital
calculation through the NAIC committee process.
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(3) If the commissioner, as the lead state regulator, makes
a determination under section 1404(k.1)(3)(iv) that differs from
the NAIC list in paragraph (4), the lead state regulator shall
provide documented justification to the NAIC and other states.
(4) Upon determination that a jurisdiction outside of the
United States no longer meets one or more of the requirements to
recognize and accept the group capital calculation, the
commissioner, as the lead state regulator, may provide a
recommendation to the NAIC that the jurisdiction outside the
United States be removed from the list of jurisdictions that
recognize and accept the group capital calculation.
Section 4. Section 1405(a)(1) of the act is amended by
adding subparagraphs and the subsection is amended by adding a
paragraph to read:
Section 1405. Standards and Management of an Insurer within
an Insurance Holding Company System.--(a) (1) Transactions
within an insurance holding company system to which an insurer
subject to registration is a party shall be subject to all of
the following standards:
* * *
(vi) (A) If the commissioner deems an insurer subject to
this act to be in hazardous financial condition, as determined
by the commissioner under 31 Pa. Code Ch. 160 (relating to
standards to define insurers deemed to be in hazardous financial
condition) or a condition that would be grounds for supervision,
conservation or a delinquency proceeding, the commissioner may
require the insurer to secure and maintain a deposit, held by
the commissioner, or a bond, as determined by the insurer at the
insurer's discretion, for the protection of the insurer for the
duration of the contract or agreement, or the existence of the
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condition for which the commissioner required the deposit or
bond. In determining whether a deposit or bond is required, the
commissioner may consider whether concerns exist with respect to
the affiliated person's ability to fulfill the contract or
agreement if the insurer were to be put into liquidation.
(B) If the insurer is deemed to be in a hazardous financial
condition or a condition that would be grounds for supervision,
conservation or a delinquency proceeding, and a deposit or bond
is necessary, the commissioner has discretion to determine the
amount of the deposit or bond, not to exceed the value of the
contract or agreement in any one year, and whether the deposit
or bond should be required for a single contract, multiple
contracts or a contract only with a specific person.
(vii) (A) All records and data of the insurer held by an
affiliate are and remain the property of the insurer, are
subject to control of the insurer, are identifiable, and are
segregated or readily capable of segregation, at no additional
cost to the insurer, from all other persons' records and data.
(B) Records and data under clause (A) include all records
and data that are otherwise the property of the insurer, in
whatever form maintained, including claims and claim files,
policyholder lists, application files, litigation files, premium
records, rate books, underwriting manuals, personnel records,
financial records or similar records within the possession,
custody or control of the affiliate.
(C) At the request of the insurer, the affiliate shall
advise that the receiver may obtain a complete set of all
records of any type that pertain to the insurer's business,
obtain access to the operating systems on which the data is
maintained, obtain the software that runs those systems either
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through assumption of licensing agreements or otherwise and
restrict the use of the data by the affiliate if it is not
operating the insurer's business.
(D) The affiliate shall provide a waiver of any landlord
lien or other encumbrance to give the insurer access to all
records and data in the event of the affiliate's default under a
lease or other agreement.
(viii) Premiums or other funds belonging to the insurer that
are collected by or held by an affiliate are the exclusive
property of the insurer and are subject to the control of the
insurer. Any right of offset in the event an insurer is placed
into receivership shall be subject to Article V of the act of
May 17, 1921 (P.L.789, No.285), known as "The Insurance
Department Act of 1921."
* * *
(6) Supervision, seizure, conservatorship or receivership
proceedings. The following shall apply:
(i) An affiliate that is party to an agreement or contract
with a domestic insurer that is subject to section 1405(a)(2)(v)
shall be subject to the jurisdiction of any supervision,
seizure, conservatorship or receivership proceedings against the
insurer and to the authority of any supervisor, conservator,
rehabilitator or liquidator for the insurer appointed pursuant
to supervision and receivership acts for the purpose of
interpreting, enforcing and overseeing the affiliate's
obligations under the agreement or contract to perform services
for the insurer that:
(A) are an integral part of the insurer's operations,
including management, administrative, accounting, data
processing, marketing, underwriting, claims handling, investment
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or any other similar functions; or
(B) are essential to the insurer's ability to fulfill its
obligations under insurance policies.
(ii) The commissioner may require that an agreement or
contract under subsection (a)(2)(v) for the provision of
services under clauses (A) and (B) specify that the affiliate
consents to the jurisdiction under this paragraph.
* * *
Section 5. Sections 1406.2(j) and 1407 of the act are
amended to read:
Section 1406.2. Group-wide Supervision for International
Insurance Groups.--* * *
[(j) As used in this section, the following words and
phrases shall have the meanings given to them in this subsection
unless the context clearly indicates otherwise:
"Group-wide supervisor." The chief insurance regulatory
official authorized to engage in conducting and coordinating
group-wide supervision activities who is from the jurisdiction
determined or acknowledged by the department under subsection
(c) to have sufficient significant contacts with the
international insurance group.
"International insurance group." An insurance group
operating internationally that includes an insurer registered
under section 1404.]
Section 1407. Confidential Treatment.--(a) All information,
documents, materials and copies thereof in the possession or
control of the department that are produced by, obtained by or
disclosed to the department or any other person in the course of
an examination or investigation made pursuant to section 1406 or
investigation made pursuant to section 1406.1 or 1406.2 and all
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information reported pursuant to sections 1402(b)(11.1) and
(11.2), 1404 and 1405 are recognized as being proprietary and
constituting intellectual property, and shall be privileged and
given confidential treatment and shall not be:
(1) Subject to discovery or admissible in evidence in a
private civil action.
(2) Subject to subpoena.
(3) Subject to the act of February 14, 2008 (P.L.6, No.3),
known as the "Right-to-Know Law."
(4) Made public by the department or any other person,
except to regulatory or law enforcement officials of other
jurisdictions or group supervisors or members of a supervisory
college in accordance with subsection (c), without the prior
written consent of the insurer to which it pertains unless the
department, after giving the insurer and its affiliates who
would be affected thereby notice and opportunity to be heard,
determines that the interest of policyholders, shareholders or
the public will be served by the publication thereof, in which
event it may publish all or any part thereof in such manner as
it may deem appropriate.
(a.1) For purposes of the information reported and provided
to the department under section 1404(k.1)(2), the commissioner
shall maintain the confidentiality of the group capital
calculation report and supporting disclosures and any group
capital information received from an insurance holding company
system supervised by the Federal Reserve Board or any United
States group-wide supervisor.
(a.2) For purposes of the information reported and provided
to the department under section 1404(k.1)(6), the commissioner
shall maintain the confidentiality of the liquidity stress test
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results and supporting disclosures and any liquidity stress test
information received from an insurance holding company system
supervised by the Federal Reserve Board and and a group-wide
supervisor located outside the United States.
(b) The commissioner, department or any individual or person
who receives documents, materials or other information while
acting under the authority of the commissioner or department or
with whom such documents, materials or other information are
shared under this article shall not be permitted or required to
testify in any private civil action concerning any confidential
documents, materials or information covered under this section.
(c) In order to assist in the performance of its duties, the
department may do any of the following:
(1) Share confidential and privileged documents, materials
or other information covered under this section, including
proprietary and intellectual property, documents, materials and
information, with regulatory or law enforcement officials of
this Commonwealth or other jurisdictions, the IAIS, the NAIC and
its affiliates and subsidiaries, group supervisors and members
of any supervisory college under section 1406.1, and any third
party consultants retained by the commissioner, enforcement
officials, the IAIS, the NAIC, group-wide supervisor or members
of a supervisory college, provided that prior to receiving the
documents, materials or other information, the recipient
demonstrates by written statement the necessary authority and
intent to provide the same confidential treatment to the
documents, materials and information as required by this
article. The department may only share confidential and
privileged documents, materials or information reported under
section 1404(k.1) with state insurance regulators having
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statutes or regulations substantially similar to subsection (a)
and who have agreed in writing not to disclose such confidential
and privileged documents, materials and information.
(2) Receive and maintain as confidential and privileged any
documents, materials or other information, including proprietary
and intellectual property, documents materials and information,
from the IAIS or the NAIC and its affiliates and subsidiaries or
from regulatory and law enforcement officials of this
Commonwealth or other jurisdictions in which the documents,
materials or other information are confidential by law in those
jurisdictions. Documents, materials or other information
obtained under this section shall be given confidential
treatment, may not be subject to subpoena and may not be made
public by the department, commissioner or any other person.
(d) The department shall enter into written agreements with
the IAIS or the NAIC and any third-party consultant retained by
the commissioner, the IAIS or the NAIC governing the sharing and
use of information provided under this article, that include all
of the following:
(1) Specific procedures and protocols regarding the
confidentiality and security of information shared with the IAIS
or the NAIC [and its affiliates and subsidiaries] or a third-
party consultant retained by the commissioner, the IAIS or the
NAIC under this article, including procedures and protocols for
sharing by the IAIS or the NAIC or a third-party consultant
retained by the commissioner, the IAIS or the NAIC with other
Federal, state or international regulators. The agreement shall
provide that the recipient agrees in writing to maintain the
confidentiality and privileged status of the documents,
materials or other information and has verified in writing the
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legal authority to maintain the confidentiality.
(2) Provisions specifying that ownership of information
shared with the IAIS or the NAIC [and its affiliates and
subsidiaries] or a third-party consultant under this article
remains with the department and that the use of the information
by the IAIS or the NAIC or a third-party consultant retained by
the commissioner, the IAIS or the NAIC is subject to the
approval of the department.
(2.1) A provision specifying that, with the exception of
documents, material or information under section 1404(k.1)(6),
the NAIC, or a third-party consultant under this article, is
prohibited from storing information shared under this article in
a permanent database after the underlying analysis is completed.
(3) A provision providing that the IAIS or the NAIC and its
affiliates and subsidiaries, or a third-party consultant under
this article, will, where permitted by law, give prompt notice
to the department and the insurer regarding any subpoena,
request for disclosure or request for production of the
insurer's confidential information in the possession of the IAIS
or the NAIC or a third-party consultant under this article.
(4) A requirement that the IAIS or the NAIC and its
affiliates and subsidiaries, or a third-party consultant under
this article, will consent to intervention by an insurer in any
judicial or administrative action in which the IAIS or the NAIC
and its affiliates and subsidiaries, or a third-party consultant
under this article may be required to disclose confidential
information about the insurer that was shared with the IAIS or
the NAIC and its affiliates and subsidiaries, or a third-party
consultant under this article.
(5) For documents, materials or information reporting under
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section 1404(k.1)(6), in the case of an agreement involving a
third party consultant, a provision for the notification of the
identity of the consultant to the department and applicable
insurers.
(e) The sharing of information by the department under this
article shall not constitute a delegation of regulatory
authority or rulemaking.
(f) The department is solely responsible for the
administration, execution and enforcement of the provisions of
this article.
(g) The sharing of information by the department as
authorized by subsection (c) shall not constitute a waiver of
any applicable privilege or claim of confidentiality in the
documents, materials or information.
(h) Documents, materials or other information in the
possession or control of the IAIS or the NAIC or a third-party
consultant as provided under this article shall:
(1) Be confidential and privileged.
(2) Not be subject to the "Right-to-Know Law."
(3) Not be subject to subpoena.
(4) Not be subject to discovery or admissible in evidence in
any private civil action.
(i) The group capital calculation results and supporting
disclosures and any group capital calculation information
required under section 1404(k.1)(2) and the liquidity stress
test results and supporting disclosures and any liquidity stress
test information required under section 1404(k.1)(7) are
regulatory tools for assessing group capital adequacy, group
liquidity and associated risks. These tools are not intended as
a means to rank insurers or insurance holding company systems
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generally and will be used in accordance with the following
standards:
(1) Except as otherwise required under this article,
directly or indirectly, making, publishing, disseminating,
circulating or placing before the public in a newspaper,
magazine or other publication, or in the form of a notice,
circular, pamphlet, letter or poster, or over any radio or
television station or any electronic means of communication
available to the public, or in any other way as an
advertisement, announcement or statement containing, a
representation or statement with regard to the group capital
calculation results, the liquidity stress test results and
associated supporting disclosures and information of any insurer
or any insurer group, or of any component derived in the
calculation by any insurer, broker, or other person engaged in
any manner in the insurance business, is misleading and
prohibited.
(2) If any materially false statement with respect to the
group capital calculation, resulting group capital ratio, an
inappropriate comparison of any amount to an insurer's or
insurance group's group capital calculation or resulting group
capital ratio, liquidity stress test result, supporting
disclosures for the liquidity stress test or an inappropriate
comparison of any amount to an insurer's or insurance group's
liquidity stress test result or supporting disclosures is
published in any written publication and the insurer is able to
demonstrate to the commissioner with substantial proof the
falsity of such statement or the inappropriateness, as the case
may be, then the insurer may publish announcements in any
written publication if the sole purpose of the announcement is
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to rebut the materially false statement.
Section 6. The act is amended by adding a section to read:
Section 1414. Compliance with Group Capital Calculation and
Liquidity Stress Test Requirements.--(a) An insurer that is
part of an internationally active insurance group shall comply
with the requirement to file a group capital calculation report
under section 1404(k.1)(2) upon the effective date of this
section. All other insurers shall comply with the requirement to
file a group capital calculation no later than January 1, 2026.
(b) An insurer shall be subject to the liquidity stress test
requirements of section 1404(k.1)(7) on January 1, 2023.
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
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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
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
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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
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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-
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,
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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.
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
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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
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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.--
(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:
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(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
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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.
(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
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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-
PEER CARSHARING PROGRAM MAY NOT ENTER INTO A CARSHARING PROGRAM
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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
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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 <