# Title 26.1 — Insurance

## Chapter 26.1-40.1 — Transportation Network Company Insurance

### § 26.1-40.1-01. Definitions.

As used in this chapter and chapter 39-34, unless the context otherwise requires:
1. "Application off stage" of operation means the time period when the driver is operating
the vehicle for personal noncommercial reasons and not engaged in any manner or
operation for the transportation network company.
2. "Application on stage" means the time period the driver is logged onto the
online-enabled application of a transportation network company and available for hire
but not engaged and there is no passenger on board.
3. "Engaged stage" means the time period from the moment a participating driver
accepts a ride request on the transportation network company's online-enabled
application or platform until the passengers on-board stage begins.
4. "Participating driver" or "driver" means an individual who:
a. Receives connections to potential passengers and related services from a
transportation network company in exchange for payment or a fee to the
transportation network company; and
b. Uses a personal vehicle to offer or provide prearranged transportation services to
a passenger upon connection through an online-enabled application or platform
controlled by a transportation network company in return for compensation or
payment of a fee.
5. "Passengers on-board stage" means the time period when there are passengers in the
vehicle pursuant to the driver's participation in a transportation network company.
6. "Personal injury protection" means basic no-fault benefits as defined under
subsection 2 of section 26.1-41-01.
7. "Transportation network company" means a person operating in this state which uses
an online-enabled application or platform to connect a passenger with an independent
participating driver who provides prearranged transportation services using a personal
vehicle. A transportation network company may not be deemed to control, direct, or
manage the personal vehicles or participating drivers that connect to the transportation
network company's online-enabled application or platform, unless agreed to by written
contract.
8. "Transportation network company insurance" means an insurance policy that covers a
driver's use of a vehicle in connection with a transportation network company's
online-enabled application or platform.
### § 26.1-40.1-02. Required disclosures.

1. A transportation network company shall disclose in writing or electronic form to
participating drivers, as part of its agreement with those drivers, the insurance
coverage and limits of liability that the transportation network company provides while
the driver uses a vehicle in connection with a transportation network company's online-
enabled application or platform and shall advise a participating driver that the driver's
personal automobile insurance policy may not provide coverage under the agreement.
2. A transportation network company shall disclose in writing or electronic form to
participating drivers, as part of its agreement with those drivers, of when the driver's
personal automobile insurance policy may not provide collision or comprehensive
coverage, under the agreement.
3. A transportation network company shall provide notice in writing or electronically to the
driver instructing the driver to notify the driver's personal automobile insurer of the
driver's participation in the transportation network.

### § 26.1-40.1-03. Insurance coverage required during the passenger on-board stage.

A transportation network company and any participating driver shall maintain transportation
network company insurance that provides for the following requirements that apply to
transportation network company insurance during the passenger on-board stage.
1. Transportation network company liability insurance is primary and in the amount of one
million dollars for death, bodily injury, and property damage. The requirements for the
coverage required by this subsection may be satisfied by:
a. Transportation network company insurance maintained by a participating driver.
b. Transportation network company insurance maintained by a transportation
network company.
c. Any combination of subdivisions a and b.
2. Transportation network company insurance coverage provided under this section for
uninsured motorist coverage must meet the requirements under section 26.1-40-15.2,
which is primary coverage.
3. Transportation network company insurance coverage provided under this section for
underinsured motorist coverage must meet the requirements under section
26.1-40-15.3, which is primary coverage.
4. Transportation network company insurance coverage must provide primary personal
injury protection to drivers, passengers, and pedestrians under chapter 26.1-41.
5. The primary insurer, in the case of insurance coverage provided under subsection 1,
has the sole duty to defend and indemnify the insured.
6. Coverage under a transportation network company insurance policy may neither be
dependent on a driver's personal automobile insurance policy carrier first denying a
claim nor a personal automobile insurance policy carrier being required to first deny a
claim.
7. If transportation network company insurance maintained by a participating driver to
fulfill the insurance obligations of this section has excluded coverage according to its
policy or ceased to exist, the transportation network company shall provide the
coverage required by this section beginning with the first dollar of a claim.
### § 26.1-40.1-04. Insurance coverage during the application on stage with no passengers

in vehicle.
1. During the application on stage and during the engaged stage, the transportation
network company insurance must include:
a. Motor vehicle liability coverage that is primary coverage. The coverage must
include at least fifty thousand dollars per person and one hundred thousand
dollars per incident for death and bodily injury and at least twenty-five thousand
dollars for property damage.
b. Uninsured motorist coverage under section 26.1-40-15.2 which is primary
coverage.
c. Underinsured motorist coverage under section 26.1-40-15.3 which is primary
coverage.
d. Personal injury protection under chapter 26.1-41 which is primary coverage.
2. The requirements for coverage under this section may be satisfied by:
a. Transportation network company insurance maintained by a participating driver;
b. Transportation network company insurance maintained by a transportation
network company; or
c. Any combination of subdivisions a and b.
3. The following apply to insurance requirements under this section:
a. The primary insurer, in the case of insurance coverage provided under
subdivision a of subsection 1, has the sole duty to defend and indemnify the
insured.
b. Coverage under a transportation network company insurance policy may neither
be dependent on a driver's personal automobile insurance policy carrier first
denying a claim nor a personal automobile insurance policy carrier being required
to first deny a claim.

c. If transportation network company insurance maintained by a participating driver
to fulfill the insurance obligations of this section has excluded coverage according
to its policy or ceased to exist, the transportation network company shall provide
the coverage required by this section beginning with the first dollar of a claim.
### § 26.1-40.1-05. Automobile insurers.

Insurers that write personal automobile insurance may allow no-fault insurance coverage to
be conditional on transportation network company no-fault insurance coverage under sections
### § 26.1-40.1-06. Liability of transportation network company beyond required limits.

This chapter does not limit the liability of a transportation network company arising out of an
automobile accident involving a participating driver in any action for damages against a
transportation network company for an amount above the required insurance coverage.
### § 26.1-40.1-07. Discretionary personal insurance where offered by personal automobile

insurer.
A personal automobile insurer may offer an automobile liability insurance policy, or an
amendment or endorsement to an existing policy that covers a private passenger vehicle or
similar type of vehicle with a passenger capacity of less than eight persons, including the driver,
while used in connection with a transportation network company's online-enabled application or
platform.
### § 26.1-40.1-08. Duty to cooperate.

In a claims coverage investigation involving a participating driver, a transportation network
company or its insurer shall cooperate with insurers that are involved in the claims coverage
investigation to facilitate the exchange of information, including the provision of dates and times
at which an accident occurred involving a participating driver and the precise times that the
participating driver logged on and off the transportation network company's online-enabled
application or platform.
### § 26.1-40.1-09. Financial responsibility.

Transportation network company insurance that meets the requirements of this chapter is
deemed to satisfy the financial responsibility requirements of chapter 39-16.
### § 26.1-40.1-10. Proof of insurance.

A participating driver of a transportation network company shall carry proof of transportation
network company insurance coverage at all times during the driver's use of a vehicle in
connection with a transportation network company's online-enabled application or platform. In
the event of an accident, a participating driver shall provide this insurance coverage information
to any other party involved in the accident and to a police officer, upon request.
### § 26.1-40.1-11. Authorized or eligible carrier.

Transportation network company insurance required by this chapter may be placed with an
insurer authorized to do business in the state or with a surplus lines insurer eligible under
section 26.1-44-03.
