Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas
 94th General Assembly                        A Bill
 Regular Session, 2023                                                             HOUSE BILL 1585
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 By: Representatives Maddox, Perry
 By: Senators Hill, Irvin
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                                     For An Act To Be Entitled
                 AN ACT TO CREATE THE DELIVERY NETWORK COMPANY
                 INSURANCE ACT; AND FOR OTHER PURPOSES.
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                                               Subtitle
                            TO CREATE THE DELIVERY NETWORK COMPANY
                            INSURANCE ACT.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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         SECTION 1.         Arkansas Code Title 23, Chapter 13, is amended to add an
 additional subchapter to read as follows:
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                  Subchapter 9 — Delivery Network Company Insurance Act
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         23-13-901.         Title.
         This subchapter shall be known and may be cited as the "Delivery
 Network Company Insurance Act".
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         23-13-902.         Definitions.
         As used in this subchapter:
                 (1)     "Delivery availability period” means the period when a
 delivery network company driver:
                            (A)   Has logged on to a digital network and is available to
 receive immediate requests to provide delivery services from a delivery
 network company;
                            (B)   Is operating a personal vehicle; and
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                      (C)   Is not providing delivery services or operating in the
 delivery service period;
             (2)   "Delivery network company" means an entity that:
                      (A)   Is a corporation, partnership, sole proprietorship, or
 other entity;
                      (B)   Operates in this state; and
                      (C)   Uses a digital network to connect a delivery network
 company customer to a delivery network company driver to provide delivery
 services;
             (3)   "Delivery network company customer" means a person:
                      (A)   Who orders the delivery of goods; and
                      (B)   Who directs the delivery network company driver as to
 the delivery location for the goods;
             (4)   "Delivery network company driver" means an individual who
 provides delivery services through a delivery network company's digital network
 using a personal vehicle;
             (5)   “Delivery service period" means the period that:
                      (A)   Begins when a delivery network company driver starts
 operating a personal vehicle en route to pick up goods for a delivery or
 series of deliveries as documented through a digital network controlled by a
 delivery network company;
                      (B)   Continues while the delivery network company driver
 transports the requested delivery or deliveries; and
                      (C)   Ends upon delivery of the requested goods to:
                             (i)    The location designated by delivery network
 company customer or the location designated by the last delivery network
 company customer in a series of deliveries; or
                             (ii)   A location designated by the delivery network
 company, including for purposes of returning the goods;
             (6)(A)     "Delivery services" means the fulfillment of delivery
 requests made by a delivery network company customer through a digital
 network, including the pickup of any goods by the delivery network company
 driver and the delivery of the goods to the location designated by the
 delivery network company customer.
                      (B)   "Delivery services" may include a series of deliveries
 to the designated locations of different delivery network company customers;
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              (7)   “Digital network” means any online application, software,
 website, or system offered or utilized by a delivery network company that
 enables deliveries with delivery network company drivers; and
              (8)   "Personal vehicle" means a motor vehicle that is:
                     (A)   Used by a delivery network company driver to provide
 delivery services through a digital network; or
                     (B)   Owned, leased, or otherwise authorized for use by the
 delivery network company driver.
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       23-13-903.    Interaction with other law.
       (a)   This subchapter does not limit the scope of federal or state law
 regarding delivery or transport of goods.
       (b)   A delivery made under this subchapter that is subject to any other
 law shall comply with the requirements of that law.
       (c)   If a conflict between this subchapter and another law dealing with
 the delivery or transport of goods arises, then the other law prevails.
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       23-13-904.    Insurance requirements.
       (a)   A delivery network company shall ensure that, during the delivery
 availability period, if applicable, and during the delivery service period,
 primary motor vehicle liability insurance is in effect that:
              (1)   Recognizes that the operator of the motor vehicle is a
 delivery network company driver; or
              (2)   Does not exclude coverage for use of a personal vehicle to
 provide deliveries.
       (b)   During the delivery service period and the delivery availability
 period, the delivery network company driver or delivery network company, or
 any combination of the two (2), shall maintain motor vehicle liability
 insurance coverage that insures the delivery network company driver for
 liability to third parties of not less than:
              (1)   Fifty thousand dollars ($50,000) for damages arising out of
 bodily injury sustained by any one (1) person in an accident;
              (2)   One hundred thousand dollars ($100,000) for damages arising
 out of bodily injury sustained by all persons injured in an accident; and
              (3)   Twenty-five thousand dollars ($25,000) for all damages
 arising out of damage to or destruction of property in an accident.
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       (c)   If the insurance coverage maintained by a delivery network company
 driver under subsections (a) and (b) of this section has lapsed or does not
 provide the required motor vehicle liability insurance coverage, then:
                (1)   The insurance coverage maintained by the delivery network
 company shall provide the motor vehicle liability insurance coverage required
 by subsections (a) and (b) of this section beginning with the first one
 dollar ($1.00) of a claim; and
                (2)   The insurance coverage maintained by the delivery network
 company shall provide that the motor vehicle liability insurer has the duty
 to defend the claim.
       (d)   Coverage under a motor vehicle liability insurance policy
 maintained by the delivery network company is not dependent upon another
 motor vehicle liability insurer first denying a claim, nor shall another motor
 vehicle liability insurance policy be required to first deny a claim.
       (e)   Insurance coverage required by this section may be obtained from
 an insurance company licensed to transact business under the insurance laws
 of this state or by an eligible surplus lines broker under the Surplus Lines
 Insurance Law, § 23-65-301 et seq.
       (f)   The coverage required under subsections (a) and (b) of this section
 shall be deemed to meet the requirements of the Motor Vehicle Safety
 Responsibility Act, § 27-19-101 et seq.
       (g)(1)     A delivery network company driver shall carry proof of
 insurance required under subsections (a) and (b) of this section at all times
 while using a personal vehicle in connection with a digital network.
                (2)   In the event of an accident, a delivery network company
 driver shall, upon request:
                       (A)   Provide insurance coverage information to the directly
 interested parties, insurers, and investigating law enforcement officers; and
                       (B)   Disclose to the directly interested parties, insurers,
 and investigating law enforcement officers whether or not the delivery
 network company driver was operating during the delivery availability period
 or the delivery service period at the time of the accident.
                (3)   The insurance coverage information required in § 23-89-213
 may be displayed or provided in either paper or electronic format.
       (h)(1)     In a claims coverage investigation, a delivery network company
 or an insurer of the delivery network company shall:
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                      (A)   Cooperate with all insurers that are involved in the
 claims coverage investigation to facilitate the exchange of information; and
                      (B)   Upon request by directly involved parties or an
 insurer of directly involved parties, immediately provide the times that a
 delivery network company driver began and ended the delivery availability
 period and the delivery service period on the delivery network company’s
 digital network in:
                            (i)    The twelve-hour period immediately preceding the
 accident; and
                            (ii)    The twelve-hour period immediately following
 the accident.
               (2)   An insurer potentially providing the coverage required in
 this section shall disclose upon request by any other insurer involved in the
 particular claim a clear description of the applicable coverage, exclusions,
 and limits provided under any motor vehicle liability insurance policies
 maintained in order to satisfy the requirements of this section.
       (i)   An insurer of a delivery network company providing coverage under
 subsections (a) and (b) of this section shall assume primary liability for a
 claim when:
               (1)   A dispute exists as to when the delivery availability period
 or the delivery service period began or ended; and
               (2)   The delivery network company does not have available, did not
 retain, or fails to provide the information required in subsection (h) of this
 section.
       (j)   A delivery network company shall not be deemed to control, direct,
 or manage a personal vehicle or delivery network company driver that connects
 to the delivery network company's digital network except if agreed to by
 written contract.
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       23-13-905.     Disclosures to delivery network company drivers.
       A delivery network company shall not permit a delivery network company
 driver to engage in delivery services on the delivery network company's
 digital network until the delivery network company discloses in writing to
 the delivery network company driver:
               (1)   The insurance coverage, including without limitation the
 types of coverage and the limits for each coverage, that the delivery network
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 company provides while the delivery network company driver uses a personal
 vehicle in connection with a delivery network company's digital network; and
             (2)    That the delivery network company driver's own motor vehicle
 liability insurance policy may not provide any insurance coverage during the
 delivery availability period, if applicable, or the delivery service period.
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       23-13-906.    Exclusions in motor vehicle liability insurance policies.
       (a)   An insurer that is licensed to write motor vehicle liability
 insurance in this state may exclude coverage and deny the duty to defend or
 indemnify for a claim of injury or loss that occurs during the delivery
 availability period and the delivery service period.
       (b)   The right to exclude all coverage under subsection (a) of this
 section may apply to any coverage included in the motor vehicle liability
 insurance policy, including without limitation:
             (1)    Liability coverage for bodily injury and property damage;
             (2)    Uninsured and underinsured motorist coverage;
             (3)    Medical payments coverage;
             (4)    Comprehensive physical damage coverage; and
             (5)    Collision physical damage coverage.
       (c)   This subchapter does not:
             (1)    Invalidate or limit an exclusion contained in a motor vehicle
 liability insurance policy, including any insurance policy in use or approved
 for use that excludes coverage for motor vehicles used for delivery or for
 any business use; or
             (2)    Invalidate, limit, or restrict an insurer's ability under
 existing law to:
                     (A)   Underwrite any insurance policy; or
                     (B)   Cancel and nonrenew an insurance policy.
       (d)   A motor vehicle liability insurer that defends or indemnifies a
 claim against a delivery network company driver that is excluded under the
 terms of its insurance policy may seek recovery against the insurer providing
 insurance coverage under § 23-13-904(a) and (b) if the claim:
             (1)    Occurs during the delivery availability period or the
 delivery service period; and
             (2)    Is excluded under the terms of its insurance policy.
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      SECTION 2.   EFFECTIVE DATE.   This act is effective on and after October
 1, 2024.
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