NAIC Adopts Transportation Network Company Ride-Sharing Guidance White Paper
Mar 31, 2015
At the close of the 2015 Spring National Meeting today, March 31, 2015, the National Association of Insurance Commissioners (“NAIC”) adopted a white paper on insurance coverage issues in the “sharing economy” for transportation.
Ride-sharing services offered by Transportation Network Companies (“TNCs”) such as Uber, Sidecar and Lyft present new insurance coverage challenges, the NAIC explained in a news release issued this afternoon. State insurance regulators are helping state legislators consider how best to address insurance coverage gaps associated with TNCs, as legislation regarding TNCs is pending in at least 35 states.
The paper, entitled Transportation Network Company Insurance Principles for Legislators and Regulators, outlines insurance considerations to guide state and local policy-makers when adopting laws or regulations on TNCs.
“With any emerging insurance issue, the NAIC is committed to giving regulators and legislators the tools they need to protect consumers,” said NAIC President and Montana Commissioner of Securities and Insurance Monica J. Lindeen. “I’m pleased that the NAIC was able to develop the TNC paper so quickly, as these services are growing rapidly across the country.”
The paper discusses the perspectives of the insurance industry, TNCs, traditional livery services like cabs and limousines, regulators, drivers and passengers. It also recommends a range of potential state-based regulatory solutions. Issues including insurance coverage gaps, coverage amounts, and types of coverage are discussed, as well as the need for consumer outreach and education regarding these new transportation services.
“States across the country are grappling with the issue of how best to make sure that TNC drivers, passengers, and the rest of the public are covered when there is an accident with a TNC driver,” said California Insurance Commissioner Dave Jones, who chairs the NAIC Sharing Economy Working Group that developed the paper. “Traditional personal auto insurance policies do not typically provide coverage, so there are insurance coverage gaps that states need to close. This is an area where insurance regulators and state legislators in each state can work together to make sure that consumers are protected.”
To view the white paper, click here.
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