Bill Text: CA AB2474 | 2015-2016 | Regular Session | Amended
Bill Title: Automobile insurance: personal vehicle sharing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2474 Detail]
Download: California-2015-AB2474-Amended.html
BILL NUMBER: AB 2474 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 16, 2016
INTRODUCED BY Assembly Member Mullin
FEBRUARY 19, 2016
An act to amend Section 12901 11580.24
of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2474, as amended, Mullin. Insurance Commissioner:
conflict of interest. Automobile insurance: personal
vehicle sharing.
Existing law defines a "personal vehicle sharing program" as a
legal entity qualified to do business in the State of California
engaged in the business of facilitating the sharing of private
passenger motor vehicles for noncommercial use by individuals within
the state. Existing law requires the personal vehicle sharing program
to facilitate the installation, operation, and maintenance of
computer hardware and software and signage necessary for a private
passenger motor vehicle to be used in a personal vehicle sharing
program, including payment of the cost of damage or theft of that
equipment and any damage caused to the vehicle by the installation,
operation, and maintenance of that equipment.
This bill would delete the above-described requirements.
Existing law requires the personal vehicle sharing program to be
liable for a loss or injury that occurs during any time period when
the private passenger motor vehicle is under the operation and
control of a person, other than the vehicle owner, pursuant to a
personal vehicle sharing program, or otherwise under the control of a
personal vehicle sharing program. A personal vehicle sharing program
continues to be liable until specified events occur, including, but
not limited to, that the private passenger motor vehicle is returned
to a location designated by the personal vehicle sharing program.
This bill would instead require that one of the triggering events
be that the private passenger motor vehicle is returned to the
location designated and agreed to by both the vehicle owner and the
user of the vehicle, consistent with the terms and policies of the
personal vehicle sharing program.
Existing law establishes the office of the Insurance Commissioner
and provides that the commissioner shall be elected by the people in
the same time, place, and manner as the Governor not to exceed 2
4-year terms. Existing law requires the commissioner to be a person
competent and fully qualified to perform the duties of the office, as
specified. Existing law also prohibits the commissioner, any deputy,
or employee, during his or her tenure of office, from being be an
officer, agent, or employee of an insurer or directly or indirectly
interested in any insurer or licensee, except as specified.
This bill would make technical, nonsubstantive changes to those
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11580.24 of the
Insurance Code is amended to read:
11580.24. (a) No A private
passenger motor vehicle insured by its owner pursuant to a policy of
insurance subject to Section 11580.1 or 11580.2 shall not
be classified as a commercial vehicle, for-hire vehicle, permissive
use vehicle, or livery solely because its owner allows it to be used
for personal vehicle sharing as long as all of the following
circumstances apply:
(1) The personal vehicle sharing is conducted pursuant to a
personal vehicle sharing program.
(2) The annual revenue received by the private passenger
motor vehicle's owner which that
was generated by the personal vehicle sharing of the vehicle does not
exceed the annual expenses of owning and operating the vehicle,
including depreciation, interest, lease payments, auto loan payments,
insurance, maintenance, parking, fuel, cleaning, automobile repair,
and costs associated with personal vehicle sharing, including, but
not limited to, the installation, operation, and maintenance of
computer hardware and software, signage identifying the vehicle as a
personal sharing vehicle, and any fees charged by a personal vehicle
sharing program.
(3) The owner of the private passenger motor vehicle does not
knowingly place the vehicle into commercial use, as defined by
Section 675.5, by a personal vehicle sharing user while engaged in
personal vehicle sharing.
(b) For purposes of this section the following definitions apply:
(1) "Personal vehicle sharing" means the use of private passenger
motor vehicles by persons other than the vehicle's owner, in
connection with a personal vehicle sharing program.
(2) "Personal vehicle sharing program" means a legal entity
qualified to do business in the State of California engaged in the
business of facilitating the sharing of private passenger motor
vehicles for noncommercial use by individuals within the state.
(3) "Private passenger motor vehicle" means a vehicle that is
insured, or is subject to being insured, under a personal automobile
liability insurance policy insuring a single individual or
individuals residing in the same household, as the named insured, or
meets the requirements of Section 16058 of the Vehicle Code, but does
not include a vehicle with fewer than four wheels.
(c) A personal vehicle sharing program shall, for each
private passenger motor vehicle that it facilitates the use of,
do all of the following:
(1) During all times that the private passenger motor
vehicle is engaged in personal vehicle sharing, provide insurance
coverages for the vehicle and operator of the vehicle that are equal
to or greater than the insurance coverages maintained by the vehicle
owner and reported to the personal vehicle sharing program. However,
the personal vehicle sharing program shall not provide liability
coverage less than three times the minimum insurance requirements for
private passenger motor vehicles. Compliance with the
terms and conditions of this paragraph shall be deemed to avoid the
application of the limitation on damage recoveries set forth in
Section 3333.4 of the Civil Code.
(2) Provide the registered owner of the private passenger
motor vehicle with a Department of Motor Vehicles Form REG 5085
or other suitable proof of compliance with the insurance requirements
of this section and the requirements of the California Financial
Responsibility Law in Section 1656.2 of the Vehicle Code, a copy of
which shall be maintained in the vehicle by the vehicle's registered
owner during any time when the vehicle is operated by any person
other than the vehicle's owner pursuant to a personal vehicle sharing
program.
(3) Collect, maintain, and make available to the private
passenger motor vehicle's owner, the vehicle owner's primary
automobile liability insurer on file with the Department of Motor
Vehicles, and to any other government agency as required by law, at
the cost of the personal vehicle sharing program, verifiable
electronic records that identify the date, time, initial and final
locations of the vehicle, and miles driven when the vehicle is under
the control of a person other than the vehicle's owner pursuant to a
personal vehicle sharing program.
(4) Provide the private passenger motor vehicle's owner
and any person that operates the vehicle pursuant to a personal
vehicle sharing program with a disclosure that contains information
explaining the terms and conditions contained in this section.
(5) Not knowingly permit the private passenger motor
vehicle to be operated for commercial use by a personal vehicle
sharing user while engaged in personal vehicle sharing.
(6) Use only private passenger motor vehicles.
(7) Facilitate the installation, operation, and maintenance of
computer hardware and software and signage, necessary for a vehicle
to be used in a personal vehicle sharing program, including payment
of the cost of damage or theft of that equipment and any damage
caused to the vehicle by the installation, operation, and maintenance
of that equipment.
(d) Notwithstanding any other provision of law
or any provision in a private passenger motor vehicle owner's
automobile liability insurance policy, in the
event of a loss or injury that occurs during any time period when the
vehicle is under the operation and control of a person, other than
the vehicle owner, pursuant to a personal vehicle sharing program, or
otherwise under the control of a personal vehicle sharing program,
the personal vehicle sharing program shall assume all liability of
the owner and shall be considered the owner of the vehicle for all
purposes. Nothing in this section limits the liability of the
personal vehicle sharing program for its acts or omissions that
result in injury to any persons as a result of the use or operation
of a personal vehicle sharing program.
(e) A personal vehicle sharing program shall continue to be liable
pursuant to subdivision (d) until both of the following occur:
(1) The private passenger motor vehicle is returned to a
location designated by the personal vehicle sharing program.
the location designated and agreed to by both the
vehicle owner and the user of the vehicle, consistent with the terms
and policies of the personal vehicle sharing program.
(2) The earliest of one of the following occurs:
(A) The expiration of the time period established for the
particular use of the private passenger motor vehicle.
(B) The intent to terminate the personal vehicle sharing use is
verifiably communicated to the personal vehicle sharing program.
(C) The private passenger motor vehicle's owner takes
possession and control of the vehicle.
(f) The personal vehicle sharing program shall assume liability
for a claim in which a dispute exists as to who was in control of the
private passenger motor vehicle when the loss occurred
giving rise to the claim, and the vehicle's private passenger motor
vehicle insurer shall indemnify the personal vehicle sharing program
to the extent of its obligation under the applicable insurance
policy, policy if it is determined that
the vehicle's owner was in control of the vehicle at the time of the
loss.
(g) In the event that the owner of the private passenger
motor vehicle is named as a defendant in a civil
action, action for a loss or injury that occurs
during any time period when the vehicle is under the operation and
control of a person, other than the vehicle's owner, pursuant to a
personal vehicle sharing program, or otherwise under the control of a
personal vehicle sharing program, the personal vehicle sharing
program shall have the duty to defend and indemnify the vehicle's
owner, subject to the provisions of subdivisions (d) and (f).
(h) Notwithstanding any other provision of law
or any provision in a private passenger motor vehicle
owner's automobile liability insurance policy, while a
private passenger motor vehicle is used by a person other
than its owner pursuant to personal vehicle sharing facilitated
through a personal vehicle sharing program, all of the following
shall apply:
(1) The insurer of that private passenger motor vehicle
on file with the Department of Motor Vehicles may exclude any and
all coverage afforded pursuant to its policy.
(2) The primary and excess insurer or insurers of the owners,
operators, and maintainers of the private passenger motor vehicle
used in a personal vehicle sharing program shall have the right to
notify an insured that it has no duty to defend or indemnify any
person or organization for liability for any loss that occurs during
use of the vehicle in a personal vehicle sharing program.
(i) No A policy of insurance that is
subject to Section 11580.1 or 11580.2 shall not be
canceled, voided, terminated, rescinded, or nonrenewed solely on the
basis that the private passenger motor vehicle has been made
available for personal vehicle sharing pursuant to a personal vehicle
sharing program that is in compliance with the provisions of this
section.
SECTION 1. Section 12901 of the Insurance Code
is amended to read:
12901. (a) The commissioner shall be a person competent and fully
qualified to perform the duties of the office. Neither the
commissioner nor a deputy or employee shall, during his or her tenure
of office, be an officer, agent, or employee of an insurer or
directly or indirectly interested in an insurer or licensee under
this code, except (1) as a policyholder, or, (2) by virtue of
relationship by blood or marriage to a person interested in an
insurer or licensee.
(b) If the commissioner, a deputy, or an employee holds a license
or permit issued under this code, he or she shall surrender it for
cancellation within 10 days after appointment and qualification. Upon
termination of his or her office or employment that license or
permit shall be reissued for the balance of the then current license
or permit year without fee or penalty.
