News Release (PDF file)

Contact:
Michael Carlson
Executive Director
Personal Insurance Federation of Florida
Phone: 850-597-7425
Email: michael.carlson@piff.net
Ron Bartlett
Senior Vice President
Hill+Knowlton Strategies
Phone: 813-545-2399
Email: ron.bartlett@hkstrategies.com
FOR IMMEDIATE RELEASE
PIFF SUPPORTS TRANSPORTATION NETWORK COMPANY TECHNOLOGY,
URGES LEGISLATURE TO CLARIFY INSURANCE REQUIREMENTS
TALLAHASSEE, Fla., March 23, 2015 – Transportation network companies such as Uber and
Lyft represent a promising technology that has arrived and can serve consumers well in the
future, but Florida legislators should clarify the insurance requirements for these services in
state law in order to adequately protect both drivers and passengers, the Personal Insurance
Federation of Florida (PIFF) said today.
PIFF issued its position on the “Transportation Network Companies” (TNCs) as the Senate and
House take up bills that will address the legal, regulatory and insurance requirements for TNCs,
which are an increasingly popular alternative for consumers.
PIFF released a set of guiding principles on insurance coverages that it asked lawmakers to
consider as they craft legislation this session. (See attached at bottom of release.)
“TNCs such as Uber and Lyft are transforming the ‘for hire’ transportation industry, and we
believe that Florida should be at the forefront of adopting legislation protecting consumers,” said
Michael Carlson, PIFF’s executive directior. “While these services can offer a new option and
convenience to consumers, it is also critical that lawmakers clarify the insurance requirements
for them in state law so that both the drivers working for the services and their passengers are
adequately protected.’’
PIFF is a trade association whose charter members – Allstate and Castle Key Insurance
Companies, the Progressive Group of Insurance Companies and State Farm Insurance
Companies – represent about 45 percent of the auto insurance market in Florida.
While most insurers do not currently provide insurance products that cover TNC-related
activities, generally speaking the insurance industry has been actively studying the growth and
popularity of TNC business with an eye toward providing products that will serve this emerging
market, Carlson said.
Given that ride-sharing services rely on drivers who are using their personal vehicles to
transport passengers for hire, PIFF believes it is critical that the Legislature specify in state law
PIFF statement on TNCs
Page 2
the commercial insurance coverage that TNCs must provide to their drivers, by the TNC, the
driver, or a combination of the two. Private passenger auto coverage is not intended to cover
commercial activities such as trolling for fares or carrying passengers on a for-hire basis, which
is exactly what the TNC activities include.
PIFF members believe that TNC coverage should be the primary insurance coverage for both
drivers and their passengers during all phases of TNC activity. Commercial coverage should
begin the moment the driver turns on the ride-sharing application and should continue until the
driver is no longer seeking paying passengers and the application is turned off, Carlson said.
“Simply put, this technology and its popularity with consumers has grown so quickly that state
laws and auto insurance requirements are playing catch-up,” Carlson said. “PIFF supports
legislation that will protect TNC consumers and TNC drivers using their personal vehicles by
requiring that the commercial activities be insured through the TNC, its driver, or the TNC and
its driver. The coverage must be primary, with the initial duty to investigate and defend any
claims during TNC activity being the responsiblity of the TNC and its driver – not the driver’s
personal auto insurance provider.”
PIFF looks forward to working collaboratively with legislators, TNCs, other auto insurers and
consumers as the Legislature works on bills regarding these promising new technologies this
session, Carlson said.
###
The Personal Insurance Federation of Florida was formed in late 2010 with three charter
members - Allstate and Castle Key Insurance Company, the Progressive Group of
Insurance Companies, and State Farm Insurance Companies - to create a dynamic,
efficient, and competitive marketplace for personal insurance products for the benefit of
all Floridians. PIFF charter members represent 45 percent of the automobile insurance
market and more than 25 percent of the homeowners insurance market.
PIFF Guiding Principles for Transportation Network Insurance Legislation
The Personal Insurance Federation of Florida detailed several guiding principles lawmakers
should consider to address insurance concerns as TNC legislation continues to take shape.
PIFF’s guiding principles for clarity in the automobile insurance market as it relates to TNC
include:
PIFF Supports Market Innovation. We believe that clear guidelines for TNC insurance will
help spur innovation in the insurance and transportation network markets.
PIFF Supports Insurance Product Certainty. For private passenger auto policies, this means
preserving the “livery” or “for hire” exclusions from a policy and providing related clarity in the
law. We believe that the Legislature should:
•
•
Preserve the enforceability of private passenger automobile policy language to exclude
“livery” or “for hire” operation of a motor vehicle.
Preserve the ability of auto insurers to take rating and underwriting action in accordance
with the risk insured, including TNC activity, in private passenger automobile policies.
Protect TNC Consumers by Defining TNC Activity and TNC Insurance Requirements.
Ensure that TNC drivers are adequately covered for their commercial activities, which will
protect them and their customers. To do so, we believe that the Legislature should:
•
•
Define TNC activity as the period of time a driver is logged onto the TNC’s app to the time
the driver logs off or the ride is completed and the passenger has exited the vehicle,
whichever is later.
Require that TNCs and/or TNC drivers carry primary coverage that specifically covers TNC
activity as defined and require the TNC to demonstrate that required coverage in the given
jurisdiction is in place during this period.
Provide Clarity to Avoid Legal Disputes. Avoid unnecessary claims against private
passenger auto carriers and related litigation by making the law clear as to who has the duty to
defend the TNC driver and to require the sharing of information between the TNC and private
passenger auto carriers. We believe that the law should provide the following:
•
•
In the event of a dispute about whether the driver was engaged in TNC activities as defined,
require the insurer that specifically covers TNC activity to defend the driver until the dispute
is resolved.
The TNC shall share data and information in a timely fashion to facilitate resolution of the
dispute.