Legislative Document No. 2027 S.P. 717 In Senate, January 14, 2020
An Act To Clarify Insurance Requirements under the Peer-to-peer Car Sharing Insurance Act
(EMERGENCY)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 203. Reference to the Committee on Health Coverage, Insurance and Financial Services suggested and ordered printed.
DAREK M. GRANT Secretary of the Senate
Presented by Senator SANBORN, H. of Cumberland. Cosponsored by Representative TEPLER of Topsham and Senator: FOLEY of York.
Printed on recycled paper 1 Emergency preamble. Whereas, acts and resolves of the Legislature do not 2 become effective until 90 days after adjournment unless enacted as emergencies; and
3 Whereas, current law requires a peer-to-peer car sharing program provider to 4 provide property and casualty coverage, including comprehensive and collision 5 protection, for physical loss to the shared vehicle during the time that the vehicle is in the 6 custody of the provider or shared vehicle driver in an amount not less than the 7 replacement cost of the shared vehicle beginning June 1, 2020; and
8 Whereas, this legislation allows a peer-to-peer car sharing program provider to 9 provide satisfactory evidence of solvency and a financial ability to pay in lieu of property 10 and casualty coverage, including comprehensive and collision protection; and
11 Whereas, this legislation must be enacted before June 1, 2020 so that both options 12 are available to a peer-to-peer car sharing program provider; and
13 Whereas, in the judgment of the Legislature, these facts create an emergency within 14 the meaning of the Constitution of Maine and require the following legislation as 15 immediately necessary for the preservation of the public peace, health and safety; now, 16 therefore,
17 Be it enacted by the People of the State of Maine as follows:
18 Sec. 1. 24-A MRSA §7403, sub-§4, ¶A, as enacted by PL 2019, c. 367, §1, is 19 amended by amending subparagraph (2) to read: 20 (2) Beginning June 1, 2020, property and casualty coverage, including 21 comprehensive and collision protection, for physical loss to the shared vehicle 22 during the time that the vehicle is in the custody of the provider or shared vehicle 23 driver in an amount not less than the replacement cost of the shared vehicle. In 24 lieu of property and casualty coverage, the provider may submit satisfactory 25 evidence to the superintendent of solvency and financial ability to provide 26 payment for physical loss to the shared vehicle as required in this subparagraph; 27 Sec. 2. 24-A MRSA §7404, sub-§1, as enacted by PL 2019, c. 367, §1, is 28 amended to read:
29 1. Provider liable as if owner. Notwithstanding any provision of law to the 30 contrary or any provision in a motor vehicle insurance policy, in the event a loss or injury 31 occurs during a car sharing period or while a motor vehicle is under the control of a 32 provider, the provider is deemed the owner of the motor vehicle under Title 29-A, section 33 1652 and any provision of law that may impose liability upon the owner of a motor 34 vehicle solely based on ownership of the motor vehicle. The provider retains liability 35 regardless of any lapse in the provider's policy or whether that liability is covered under 36 the provider's policy or any other insurance policy under which the provider is insured. 37 The liability of a provider under this subsection may not exceed 3 times the minimum 38 requirements for liability in Title 29-A, section 1605.
39 Sec. 3. 24-A MRSA §7404, sub-§3 is enacted to read:
Page 1 - 129LR2931(01)-1 1 3. Fraud or material misrepresentation. The assumption of liability in subsection 2 1 and the insurer's duty to defend and indemnify required in subsection 2 do not apply to 3 a provider when a shared vehicle owner or shared vehicle driver commits intentional 4 fraud or makes a material misrepresentation to the provider and the loss or injury during a 5 car sharing period or while a motor vehicle is under the control of the provider resulted 6 from the fraud or material misrepresentation.
7 Sec. 4. 24-A MRSA §7405, sub-§3, as enacted by PL 2019, c. 367, §1, is 8 amended to read:
9 3. Filing of rates and forms. For the purposes of any insurance policy written in 10 accordance with this section, the insurer shall file rates and forms with the superintendent 11 for approval. For the purposes of any surplus lines insurance policy, the insurer shall file 12 any information required by the superintendent necessary to determine compliance with 13 this section.
14 Emergency clause. In view of the emergency cited in the preamble, this 15 legislation takes effect when approved.
16 SUMMARY 17 This bill makes the following changes to clarify the Peer-to-peer Car Sharing 18 Insurance Act.
19 1. It allows a peer-to-peer car sharing program provider to provide satisfactory 20 evidence of solvency and a financial ability to pay in lieu of comprehensive and collision 21 insurance coverage.
22 2. It limits the liability of a peer-to-peer car sharing program provider for a loss or 23 injury during a car sharing period or while a motor vehicle is under the control of a 24 provider to no more than 3 times the State's minimum financial responsibility 25 requirements.
26 3. It provides that a peer-to-peer car sharing program provider is not liable for a loss 27 or injury during a car sharing period or while a motor vehicle is under the control of a 28 provider and the insurer of such a provider does not have a duty to defend and indemnify 29 a shared vehicle owner or shared vehicle driver when a shared vehicle owner or shared 30 vehicle driver commits intentional fraud or makes a material misrepresentation to a 31 provider and the loss or injury resulted from the fraud or material misrepresentation.
32 4. It clarifies that surplus lines insurance may be used.
Page 2 - 129LR2931(01)-1