What Insurance Companies Are Competitive For Livery

What Insurance Companies Are Competitive For Livery

When it comes to the business of transportation, one of the most important aspects of these businesses involves having the proper insurance coverage. For those who operate commercial limousine services, bus charter services, or have a fleet of vehicles for other purposes, having livery insurance makes sense in a number of ways. Because these businesses rely on dealing with a wide variety of people on a daily basis, it’s virtually inevitable that situations will happen that result in the need for livery insurance coverage. In order to know what insurance companies are competitive for livery, there are a number of factors to take into consideration.

Coverage Limits
When a business owner is attempting to decide on the proper livery insurance, one of the first things to take into consideration is coverage limits. Whether a business has only one limo or a multitude of vehicles, knowing what insurance companies are competitive for livery can provide coverage limits from $5 million up to as much as $20 million, ensuring any business can be protected in the event an incident happens.

A Variety of Services
For businesses that are in need of insurance, determining what insurance companies are competitive for livery involves knowing what services are available. Some of the most common services used by personal transportation businesses include:
–Bodily Injury and Property Damage
–Physical Damage
–General Liability
–Garage Liability
Within these different types of coverage, some of the key components include uninsured motorist coverage, underinsured motorist coverage, medical payments, and personal injury protection.

Knowledge and Experience
Perhaps most of all, knowing what insurance companies are competitive for livery includes working with an insurance broker who has the knowledge and experience needed in this specialized area of insurance. By doing so, an agent can talk with you about the specific needs of your business, then tailor a policy that ensures as much coverage as possible for numerous situations. In addition to this, the best agents are often independent, allowing them to work with a number of different companies in order to get the best deals for their customers.

Contact an Agent Today
In order to have a complete understanding of what insurance companies are competitive for livery, the best thing to do is contact a knowledgeable and experienced insurance agent. By doing so, you and your business can begin to discover the many aspects of livery insurance, all of which can help protect your business in the event an accident or other incident occurs.

Best regards,
Gary Hanson
Professional Insurance Strategies, LLC
2822 W. Northern Ave
Phoenix, AZ 85051
Mailing
3655 W. Anthem Way A109-283
Anthem, AZ 85086
ghanson@proinsgroup.com
602-481-0161
623-463-9001 Fax

Cab Insurance Arizona

Cab Insurance Arizona

Operating a taxi can be a great way to make money in Arizona. People are always in need of rides to bars, to the airport or wherever else they need to go. However, it is important that you have sufficient insurance if you want to operate a legal taxi company or drive your own taxi within the law.

Cab Insurance Arizona Requirements

If you are going to operate a taxi in the state of Arizona, you must carry $250,000 of primary commercial coverage in addition to $250,000 of uninsured motorist coverage. However, this is only during times in which you are actually transporting a paying customer. Proof of insurance must be carried at all times and presented upon request to anyone who asks for it.

Cab Insurance Arizona Requirements When Not Transporting Customers

If you are driving a taxi in the state of Arizona without any passengers inside, your insurance requirements are the same as any other driver. This means that you only have to carry $25,000 of general liability for a single person and $50,000 to cover two or more people hurt in an accident. Furthermore, you must carry $20,000 of coverage to pay for any property damage that may occur in an accident.

What Happens After an Accident?

In the event that you get into an accident while driving a cab, an investigation will be performed. You are responsible for presenting proof of insurance and meeting all other requirements to act as a taxi driver or operator. Your cab insurance Arizona provider is also required to provide any information that would help an investigation proceed. After an investigation is complete, one party will be deemed to have been at fault, and legal proceedings may take place if applicable.

What Happens if Your Commercial Insurance Policy Lapses?

If your insurance lapses, you must either get a new policy or stop operating as a taxi. Your insurance company may allow you to renew your coverage automatically or otherwise alert you to the fact that your policy will lapse well before it actually happens. This gives you ample time to ensure that your policy remains valid.

Whenever you operate a motor vehicle whether for private or commercial purposes, don’t forget to have adequate insurance. It will help you avoid financial and legal penalties that can harm your personal finances as well as your ability to make a living driving your car.

Best regards,
Gary Hanson
Professional Insurance Strategies, LLC
2822 W. Northern Ave
Phoenix, AZ 85051
Mailing
3655 W. Anthem Way A109-283
Anthem, AZ 85086
ghanson@proinsgroup.com
602-481-0161
623-463-9001 Fax


Does Arizona Require Commercial Drivers License For A Tnc

Transportation network companies, otherwise known as TNCs, are becoming increasingly popular, and this includes companies like Lyft, Uber and Total Transit, to name a few. These companies each have unique reservation or transportation request methods, and they provide individuals with a fast, convenient and generally affordable way to get from one location to another. If you are thinking about becoming a TNC driver or if you are already a driver with one of these companies, you may wonder about licensing requirements. Does Arizona require commercial drivers license for a TNC?

Licensing Requirements
The question of does Arizona require commercial drivers license for a TNC is an increasingly common one, and this is because many people are using a TNC driving job as a way to make extra money on the side or even to earn a full-time living with flexible work hours. All drivers are required to have a driver’s license that is appropriate for the type of vehicle they are driving. Most will be driving their own private car, truck or SUV, so a standard driver’s license will suffice. However, there are insurance requirements that must be met for a TNC job.

The Basic Insurance Requirements
There are some insurance requirements in place for TNC drivers in Arizona. When providing personal transportation, the driver must maintain a liability policy of 25/50/20. This means that it provides $25,000 in benefits for bodily injury or death to one person, $50,000 for bodily injury or death to two or more people and $20,000 for personal property damage coverage. There are other requirements in place for TNC drivers in Arizona as well. For example, drivers must have a commercial liability policy of at least $250,000 per incident and insured motorist coverage of at least $250,000 per incident. Proof of coverage should be in the driver’s possession at all times the vehicle is in operation for commercial purposes.

In order to be in legal compliance on the road, drivers must be properly licensed as well as insured. Therefore, it is important to ask does Arizona require commercial drivers license for a TNC. Those who are thinking about becoming a TNC driver in Arizona can consider these points for both licenses and insurance before starting a new job. The licensing status and insurance will need to remain active while the driver is working for a TNC in Arizona.

 

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

 

Arizona State Rideshare Insurance

Today, ridesharing is more popular than ever, with companies like Uber and Lyft taking over a large part of the commercial driving business that was once only inhabited by traditional (and more expensive) taxi companies. Today, many people are avoiding the stress of dealing with traffic and of driving home from social events that involve drinking by utilizing rideshare companies. These new companies have seen explosive growth in recent times as they are easy to use and offer a largely safe and affordable alternative to taxis or driving a car.

One of the big issues involved in the growth of these newer ride sharing companies, however, is how they fit into the legal landscape once ruled only by the laws concerning commercial vehicles, like taxis. Since drivers for ridesharing companies use their own cars, or cars leased to them by the ridesharing companies, the legal issues involved with insurance in several states has been unclear. A new ruling pertaining to Arizona state rideshare insurance has just been put in place, however, and it is helping to clarify some of the complicated issues involved in the brave new world of ridesharing and the legal protections required.

New Insurance Bill Passed in Arizona for Ridesharing

While Uber and Lyft allowed many drivers to start driving for money without actually having a commercial license, the sticking point in states like Arizona has been the issue of commercial insurance, or lack thereof. Up until now, if a rideshare driver was in an accident, their own personal insurance coverage would not cover the costs of any damage or injury. Due to this, last year Arizona a bill was passed regarding Arizona state rideshare insurance that required rideshare drivers to carry commercial insurance.

The commercial insurance requirement bill seemed to solve the problem in Arizona of rideshare drivers being underinsured in case of accident, but ultimately it was cost prohibitive. To solve this, new legislation has been put in place that, while still requiring rideshare drivers to have commercial insurance, it can now be purchased as an add-on to their personal insurance policies.

There are now also similar laws passed in California and Colorado that cover the issue of having proper insurance in place for rideshare drivers. This has all come about due to the ongoing growth of the rideshare industry, and the many jobs it has created with its smartphone apps.

Arizona now sees itself in the forefront of states that are dealing head on with the complex issues involved with making ridesharing safe and legal, without hurting an industry that is quickly adding new jobs in the southwest. Arizona state rideshare insurance is definitely a breakthrough in legislation governing Uber, Lyft and other ridesharing app companies.

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

 

Adot Uber Changes

In recent years, the rapid ascent of Uber and Lyft has angered professional taxi drivers across the country, making them feel as if Uber and Lyft drivers have had unfair advantages due to a lack of regulations at the state and national levels.  However, as more complaints have poured in over recent months, one state that has taken action is Arizona.  The state’s Department of Transportation recently implemented numerous changes in the insurance requirements for Uber and Lyft drivers, with many of the drivers voicing their displeasure with the ADOT Uber changes.

Financial Responsibilities
What has set Uber and Lyft drivers apart from professional taxi drivers has been the large gap in financial responsibilities placed on the drivers.  As of July 3, 2015 those responsibilities changed dramatically, with the ADOT Uber changes making sure the playing field is level for everyone in the industry.  As of that date, Uber and Lyft drivers operating vehicles seating no more than eight passengers will be required to carry motor vehicle liability policies containing minimum coverage as well as uninsured motorist coverage in the amount of $250,000.

Software Applications
Because Uber and Lyft drivers rely on computer software to link up with those needing rides, insurance coverage will be critical when they are logged into their business software.  When a driver is logged into the software and actively available to provide transportation to customers, they are now required to maintain commercial coverage amounts of $25,000/$50,000/$20,000 as well as uninsured motorist insurance of $250,000.

Other ADOT Uber Changes
To make sure the insurance requirements are being met by Uber and Lyft drivers, ADOT has slightly changed the way it will conduct inspections of vehicles.  Random inspections and audits will be conducted every three years, rather than annually.  While seen by some as less stringent, others view it as a positive step toward getting Uber and Lyft drivers in line with more traditional taxi drivers and companies.  Working with insurance companies, other ADOT Uber changes include the provision that a motor vehicle insurance policy which has been in effect for at least 60 days may not be cancelled unless the person named on the policy is covered by a motor vehicle liability policy from another insurer.

While some Uber and Lyft drivers may object to these changes, taxi drivers working for traditional companies see the changes as a positive step in the right direction.  As more and more customers look to Uber and Lyft for rides, other changes may be necessary in the years ahead

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

.

Adot Uber Changes-Phoenix Arizona, Houston Texas, San Diego CA

In recent years, the rapid ascent of Uber and Lyft has angered professional taxi drivers across the country, making them feel as if Uber and Lyft drivers have had unfair advantages due to a lack of regulations at the state and national levels.  However, as more complaints have poured in over recent months, one state that has taken action is Arizona.  The state’s Department of Transportation recently implemented numerous changes in the insurance requirements for Uber and Lyft drivers, with many of the drivers voicing their displeasure with the ADOT Uber changes.

Financial Responsibilities
What has set Uber and Lyft drivers apart from professional taxi drivers has been the large gap in financial responsibilities placed on the drivers.  As of July 3, 2015 those responsibilities changed dramatically, with the ADOT Uber changes making sure the playing field is level for everyone in the industry.  As of that date, Uber and Lyft drivers operating vehicles seating no more than eight passengers will be required to carry motor vehicle liability policies containing minimum coverage as well as uninsured motorist coverage in the amount of $250,000.

Software Applications
Because Uber and Lyft drivers rely on computer software to link up with those needing rides, insurance coverage will be critical when they are logged into their business software.  When a driver is logged into the software and actively available to provide transportation to customers, they are now required to maintain commercial coverage amounts of $25,000/$50,000/$20,000 as well as uninsured motorist insurance of $250,000.

Other ADOT Uber Changes
To make sure the insurance requirements are being met by Uber and Lyft drivers, ADOT has slightly changed the way it will conduct inspections of vehicles.  Random inspections and audits will be conducted every three years, rather than annually.  While seen by some as less stringent, others view it as a positive step toward getting Uber and Lyft drivers in line with more traditional taxi drivers and companies.  Working with insurance companies, other ADOT Uber changes include the provision that a motor vehicle insurance policy which has been in effect for at least 60 days may not be cancelled unless the person named on the policy is covered by a motor vehicle liability policy from another insurer.

While some Uber and Lyft drivers may object to these changes, taxi drivers working for traditional companies see the changes as a positive step in the right direction.  As more and more customers look to Uber and Lyft for rides, other changes may be necessary in the years ahead.

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

Cab Insurance Phoenix Arizona

Cab drivers interested in starting their own business should think about investing in quality cab insurance Phoenix Arizona to make the most of their business opportunities. When cab drivers invest in insurance, they are providing their clients with quality peace of mind. They can help set themselves apart from other professionals in the field by providing their clients with additional benefits. However, there are many different types of insurance that professionals can choose to invest in, and knowing what to expect can allow these specialists to make the right choice. Learn about some of the following types of cab insurance to see how you can optimize your business approach.

Third Party Insurance

A cab that has third party only insurance will be working with an insurance obligation that is the lowest type legally allowed for the driver. It is the cheapest type of insurance that the cab driver can choose and it cannot be used to cover personal damages or other important costs. It can be a good idea for entry drivers and those who are interested in a quick start to the field, but eventually individuals will need to invest in other, stronger types of insurance.

Breakdown Recovery

When professionals are ready to expand their operations, it is strongly recommended for them to look into breakdown recovery insurance. This is a must have for taxi drivers, as breakdown recovery insurance can help provide drivers with necessary support when their vehicles break down. For the amount of driving that taxi drivers will be doing when compared to other motorists, this type of insurance ends up paying for itself, especially after a lengthy career.

Public Liability

All motorists should be sure to invest in some type of public liability coverage. This is a more advanced option for the vehicle, and the greater that the coverage is, the more expensive it will get. However, if you ever find yourself in a position where you will be liable for different types of damages in court, this cab insurance Phoenix Arizona will help clarify your position.

Comprehensive Coverage

Finally, and perhaps most importantly, drivers should consider investing in comprehensive coverage. This is generally believed to be the most beneficial type of cab insurance Phoenix Arizona coverage that taxi drivers need. The comprehensive coverage will offer insurance for just about all types of road accidents, no matter whether the driver is held liable or not. The driver will be able to make claims for things such as theft, vandalism and other events.

 

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

Livery Insurance AZ

If you are going to offer transportation services to the public for a fee, you are going to need to do your homework concerning insurance. When it comes to livery insurance AZ, it’s more complicated and expensive than a regular insurance policy. It’s understandable. You are going to be responsible for the welfare of other individuals. Be sure to consider all of your options for livery insurance AZ before you make a final decision. You are not only covering yourself in the event of liability and financial losses. You are protecting your passengers in the event that there is a mishap on the road.

Turn to a Company that Specializes in Livery Insurance
Whether you own a limousine service, run a taxi station, or provide any other type of transportation for a fee, such as trolley service in a tourist area, you need to be sure that you are properly insured. Companies that focus on livery insurance AZ will help you to protect your assets and be prepared for anything that may go wrong while you are carrying passengers.

How to Find Livery Insurance Companies
As you search for livery insurance AZ, you have many resources at your disposal. They include:

State insurance regulator listings
Online search results
The Chamber of Commerce

Be sure to review all of your alternatives. You want to rest assured that your business is meeting all state regulations and that your insurance is comprehensive. Otherwise, you could find yourself dealing with catastrophic losses.

One Size Does Not Fit All
Turn to a company that has experience and has been established when you need livery insurance AZ. A livery insurance broker should understand your needs and offer you choices that are tailored to suit you. Your insurance company should be geared for the transportation industry and be able to offer you quotes that are related to the size of your business. Your policy should include all of the features that will satisfy you, including driver training, proper procedures for drug and alcohol testing for your drivers, and DOT compliance if you are operating a large business. If you are involved in a small business that only involves you as a driver, you can opt for a basic policy. Your livery insurance broker can help you to choose the best policy to meet your needs.

 

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

Limousines And Taxi Insurance

In most states, there is a requirement that drivers must obtain a minimum amount of auto insurance, and Arizona, California and Nevada are included in these states. While there are auto insurance requirements related to personal vehicles, there are also other auto insurance requirements in place for different types of commercial vehicles. Limousines and taxi insurance is a special type of insurance that is in place for commercial vehicles that carry passengers. If you are involved in a livery business, you must obtain the proper commercial auto insurance based on the state’s requirements in order to drive legally.

Do You Need This Type of Insurance?
The requirements for limousines and taxi insurance vary by state, and you may be wondering if you need this type of coverage. It is generally intended for vehicles that are used for a commercial vehicle to transport one or more passengers through regular work activities on a for hire basis. The coverage amounts and type requirements vary by state, but generally, there are requirements for both liability and personal injury coverage for limousines and taxi insurance. While you must comply with the coverage requirements to meet the legal requirements, the coverage also is beneficial from a financial standpoint. For example, the liability coverage may be beneficial if you cause an accident in your vehicle and must pay another driver’s expenses.

How Much Insurance Do You Need?
When you are involved in a livery activity for your business, it is important that you understand the different requirements for limousines and taxi insurance. The requirements can become detailed. For example, in Arizona, the minimum coverage amount is $300,000. However, this can increase based on the type of vehicle that you drive as well as the number of passengers you transport. Each state will also have different requirements. Therefore, whether you plan to operate your commercial vehicle in Arizona, California or Nevada, it is important that you obtain coverage based on the state’s requirements, the type of vehicle you drive and the number of passengers you transport.

Limousines and taxi insurance, which may also be called livery insurance, is a requirement, and you must obtain it in each of these states in order to operate your commercial vehicle legally. The cost of this insurance can be high, and this is particularly true if your vehicle will be used to transport many people. By comparing quotes, you can find the best rate on your livery coverage.

Best regards,

 Gary Hanson

Professional Insurance Strategies, LLC

6708 W. Bethany Home Rd

Glendale, AZ 85301

 

ghanson@proinsgroup.com

602-481-0161

623-551-6716 Fax

Arizona Uber Insurance, Lyft, Livery, Taxi, TNC Insurance Requirements

Listed below is HB 2135 which establishes new insurance requirements for Uber, Lyft, Total Transit, Livery, Taxi, and other TNC Insurance Requirements:

Overview

HB 2135 establishes the transportation network companies (TNC) article governing TNCs and TNC drivers, and outlines financial responsibility requirements for TNCs and livery vehicles, taxis, and limousines.

History

The Arizona Department of Weights and Measures (DWM) is the primary authority for licensing and regulating taxi, livery vehicles and limousines in the state. Statute requires owners of livery vehicles, taxis and limousines to allow DWM to inspect criminal background checks and drug testing of vehicle operators and allow the inspection of vehicle maintenance records (Arizona Revised Statutes (A.R.S.) § 41-2097). Additionally, statute specifies the licensing requirements for taxi, livery vehicles and limousines (A.R.S. § 41-2091).

A.R.S. § 41-2051 defines livery vehicle and taxi. A livery vehicle is a motor vehicle that provides passenger services for a fare determined by a flat rate or flat hourly rate between geographic zones or within a geographic area. A taxi is defined as a motor vehicle that is registered as a taxi in this state or any other state and offers local transportation for a fare determined primarily on the basis of the distance traveled.

Provisions

Transportation Network Company

1. Requires a company to obtain a permit issued by DWM in order to operate a TNC in this state.

2. Directs DWM to charge and collect an application fee as determined by DWM.

3. Requires DWM to issue a permit to an applicant that meets the specified requirements.

4. Direct the TNC to maintain an agent for service of process in this state.

5. Requires the TNC to display trade dress to identify the TNC vehicle with a particular TNC while the vehicle is used to provide services. The TNC must file an illustration of the trade dress with DWM.

6. Permits a TNC to charge a fare for transportation network services provided to passengers, and disclose the calculation method of the fare on its website or within the digital network or software application.

7. Requires the TNC to provide the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC vehicle.

8. Requires the TNC digital network or software application to display a picture of the TNC driver and the license plate number of the motor vehicle used for providing the service.

9. Directs the TNC to transmit to the passenger an electronic receipt, within a reasonable period of time following the completion of the trip, indicating the following:

a. Origin and destination of trip.

b. Total time and distance of trip.

c. An itemization of the total fare paid, if any.

Transportation Network Company Zero-Tolerance Policy

10. Directs a TNC to implement a zero-tolerance policy on the use of drugs and alcohol while a TNC driver is providing services or is logged in to the TNC digital network or software application but not providing services, and that the policy be provided on the TNC website.

a. This policy must include procedures to file a complaint about a driver with whom a passenger was matched and who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the trip.

11. Mandates the TNC to immediately suspend (until completion of an investigation) the driver’s access to the TNC digital network or software application and to conduct an investigation upon receipt of a passenger complaint alleging a violation of the zero-tolerance policy.

12. Stipulates that the TNC must permanently deactivate the driver’s access to the TNC’s digital network or software application if the investigation confirms that the driver violated the zero-tolerance policy, and requires the TNC to maintain enforcement records for at least two years after the date a passenger complaint is received by the TNC and make the records available to DWM on request.

Transportation Network Company Drivers

13. Requires the TNC to do the following prior to a person accepting trip requests through a digital network or software application:

a. Require the person to submit an application to the TNC that includes the person’s name, address, age, driver license number, driving history, motor vehicle registration, motor vehicle insurance information and any other information requested by the TNC.

b. Conduct, or have a third party conduct, a local and national criminal background check for each applicant that includes a search of a multijurisdiction criminal records locator or similar, validated commercial nationwide database, and a national sex offender registry database.

c. Obtain and review a driving history report for the applicant.

d. Require that all TNC vehicles used by TNC drivers meet state vehicle safety and emissions standards for private vehicles and have at a minimum an annual brake and tire inspection performed by a qualified third party.

14. Prohibits a TNC from allowing a person to act as a TNC driver who:

a. Has had more than three moving violations or one major violation (attempting to evade the police, reckless driving or driving on a suspended or revoked license) in the preceding three years.

b. Has been convicted within the preceding seven years of serious felony violations, DUI, extreme DUI, or DUI on a suspended, cancelled, revoked or refused license.

c. Is listed in a national sex offender registry database.

d. Does not possess a valid driver license.

e. Does not possess proof of registration for the motor vehicle that will be used as the TNC vehicle.

f. Does not possess proof of financial responsibility for the motor vehicle that will be used as a TNC vehicle.

g. Is not at least 19 years of age.

15. Requires the TNC to maintain records of the criminal background check conducted of each driver and to make the records available to DWM on request.

Transportation Network Services

16. Specifies that a TNC driver shall accept rides booked exclusively through a TNC’s digital network or software application.

17. Authorizes DWM to impose a civil penalty of not more than $1,500 per violation or any TNC driver who is found to be soliciting or accepting street hails.

a. Does not apply to a TNC driver who is not required to accept rides booked exclusively through a TNC’s digital network or software application.

18. Directs the TNC to maintain individual trip records for at least one year after the date each trip was provided and the TNC driver records until the one-year anniversary of the date of the driver’s activation on the TNC’s digital network or software application has ended, to make records available to DWM on request.

TPT Exemption

19. Exempts a TNC with a permit and a TNC driver from paying the transaction privilege tax or any similar tax imposed by any taxing authority in this state on transactions in which a TNC driver is providing transportation network services.

Transportation Network Company Disclosures

20. Requires the TNC to disclose to its drivers in writing or electronic format, specified information before the driver may accept a request for services on the TNC’s digital network or software application.

21. Specifies the TNC insurer to issue a payment for a comprehensive or collision claim to the business repairing the vehicle or jointly to the owner of the vehicle and the primary lienholder on the covered vehicle.

Financial Responsibility Requirements

22. Requires a person that is subject to the financial responsibility requirements pursuant to statute for transporting passengers in vehicles with a seating capacity of not more than eight passengers including the driver to maintain a motor vehicle liability insurance policy containing one of the following:

a. Minimum coverage and uninsured motorist coverage in the amount of at least $250,000, or

b. Other minimum coverage amounts as prescribed by statute.

23. Outlines the financial responsibility requirements for TNCs, taxis, livery vehicles, and limousines as follows:

a. For a TNC that requires a driver to accept rides exclusively through a software application:

i. During the time the driver is logged into the software application but not providing transportation network services:

Ø Prior to March 1, 2016, coverage amounts of 25,000/50,000/20,000.

Ø After March 1, 2016, coverage amounts of 25,000/50,000/20,000. Further outlines how coverage is maintained.

ii. During the time the driver is providing transportation network services:

Ø Commercial coverage and uninsured motorist coverage in the amount of 250,000.

b. For a TNC that does not require a driver to accept rides exclusively through a software application:

i. During the time the driver is logged into the software application but has not accepted a ride request:

Ø Commercial coverage amounts of 25,000/50,000/20,000.

ii. During the time the driver has accepted a ride request and is providing passenger transportation:

Ø Commercial coverage and uninsured motorist coverage in the amount of 250,000.

c. For a taxi, livery vehicle, or limousine:

i. During the time the driver has not accepted a ride request and is not providing passenger transportation:

Ø Commercial coverage amounts of 25,000/50,000/20,000.

ii. During the time the driver has accepted a ride request and is providing passenger transportation:

Ø Commercial coverage and uninsured motorist coverage in the amount of 250,000.

Livery Vehicles, Taxis and Limousines

24. Removes the requirement for an owner to have drug testing records and vehicle maintenance records available for inspection at all times by DWM.

25. Removes the requirement for a preemployment drug test and random drug tests for a livery vehicle, taxi or limousine drivers.

26. Requires that owners ensure that all vehicles meet state vehicle safety and emissions standards for private vehicles as well as have at a minimum, an annual brake and tire inspection performed by a qualified party.

27. Requires owners to maintain vehicle safety and emissions inspection records for at least two years and make the records available to DWM on request.

28. Directs owners to implement a zero-tolerance policy on the use of drugs and alcohol while a driver is providing or is available to provide passenger transportation, and that this policy be provided on the company’s website or in the taxi, livery vehicle or limousine.

a. This policy must include procedures to file a complaint about a driver with whom a passenger was matched and who the passenger reasonably suspects was under the influence of drugs or alcohol during the course of the trip.

29. Mandates the owner to immediately suspend (until completion of an investigation) the driver’s access to the owner’s taxi, livery vehicle or limousine and conduct an investigation upon receipt of a passenger complaint alleging a violation of the zero-tolerance policy.

30. Stipulates that the owner must permanently prohibit the driver’s access to the owner’s taxi, livery vehicle or limousine if the investigation confirms that the driver violated the zero-tolerance policy, and that the owner must maintain enforcement records for at least two years after the date a passenger complaint is received by the owner and make the records available to DWM on request.

Miscellaneous

31. Provides definitions for pertinent terms.

32. Excludes from the motor vehicle definition, in relation to canceling or non-renewing an insurance policy, a vehicle that otherwise qualifies as a motor vehicle only while the driver of the vehicle is logged in to a TNC’s digital network or software application or is providing transportation network services, unless expressly covered by the private passenger policy, beginning March 1, 2016.

33. Adds that a motor vehicle insurance policy that has been in effect for 60 days, or that has been renewed, effective immediately, may not be canceled or nonrenewed unless, beginning March 1, 2016, the named insured or any other person who operates the motor vehicle insured under the policy uses the vehicle rated or insured as a TNC vehicle to provide transportation network services unless, while the driver is logged in to the TNC’s digital network or software application or is providing transportation network services, either:

a. Has procured an endorsement to the private passenger policy that expressly provides such coverage, or

b. Is covered by a motor vehicle liability insurance policy issued by another insurer specifically providing such coverage.

34. Specifies that an insurer may provide a private passenger policy endorsement which expressly provides coverage for a transportation network service, however that endorsement may not be treated as basic coverage and any termination of the endorsement may not be treated as a modification of basic coverage.

35. Allows an insurer to terminate an endorsement and requires a notification of termination to be sent to the policyholder at least 45 days prior to the effective date of the termination.

36. States the notice must include an explanation that providing further transportation network services may subject the insured to cancellation or nonrenewal of the private passenger motor vehicle policy.

37. Clarifies that an insurer is not required to offer or issue a policy or endorsement that includes coverage for any liability incurred while the TNC driver is logged in to the TNC’s digital network or software application or is providing transportation network services.

38. Expands the state preemption regarding municipal regulation to TNC vehicles and TNCs.

39. Exempts TNCs, TNC drivers, or TNC vehicles from the reregistration on becoming liable for weight fee statute.

40. States that a motor vehicle liability policy is not required to insure liability, beginning March 1, 2016, for a private passenger motor vehicle used while a TNC driver is logged in to a TNC’s digital network or software application or is providing transportation network services unless expressly authorized by the terms of the insurance policy or an endorsement or amendment to the policy.

41. Stipulates that, beginning March 1, 2016, the TNC driver’s policy and the vehicle owner’s personal policy are not required to provide any coverage for the motor vehicle, the TNC driver, the vehicle owner, or any third party while a TNC driver is logged in to the TNC software application or is providing services, unless the policy or endorsement expressly provides coverage.

42. Allows an insurer to offer one of the following coverages while a TNC driver is logged in or providing services:

a. A motor vehicle liability insurance policy expressly providing such coverage, or

b. An amendment or endorsement to an existing motor vehicle liability insurance policy specifically providing such coverage.

43. Specifies that the TNC, taxi, livery vehicle, or limousine driver must carry proof of insurance in the vehicle at all times while logged in to the software application or providing services.

44. Requires the TNC, taxi, livery vehicle, or limousine driver, if involved in an accident, to provide proof of insurance to the parties involved at the time of the accident and to notify the TNC or taxi, livery vehicle, or limousine owner of the accident.

45. Requires the TNC, or taxi, livery vehicle, or limousine owner and any insurer providing coverage to fully cooperate in the exchange of information in a claims coverage investigation.

46. States, beginning March 1, 2016, the financial responsibility requirements do not create an obligation for an insurer to provide coverage for any liability arising while the TNC driver is logged in to the digital network or software application or is providing services.

47. Allows an insurance policy to be offered by an authorized insurer or a surplus lines insurer.

48. Authorizes the Department of Insurance, as part of its annual survey of insurance companies, to request information from insurers regarding the availability of policies and policy endorsements offered to a TNC driver and how many such policies or endorsements have been purchased or cancelled during the survey period.

49. Exempts from the transporting classification TNCs that are subject to the permit fee, or TNC drivers on transactions involving services, as prescribed by statute.

50. Makes technical and conforming changes.

51. Contains a legislative intent clause.

52. Provides a temporary exemption from rulemaking requirements for DWM or the Arizona Department of Transportation (ADOT) for the purposes of implementing this act.

53. Directs Legislative Council to transfer and renumber applicable provisions should the responsibility of regulation of livery vehicles, taxis, and limousines be transferred from DWM to ADOT.

source was the 52nd Legislature

Best regards,
Gary Hanson
Professional Insurance Strategies, LLC
6708 W. Bethany Home Rd
Glendale, AZ 85301

ghanson@proinsgroup.com
602-481-0161
623-551-6716 Fax

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