American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
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Nicole Mahrt Ganley, ACIC

Kara Cross, PIFC


916-440-1116 or Cell 916-616-5855






May 7, 2014

California Assembly Insurance Committee Approves Measure Requiring TNCs to Have Coverage App On to App Off

SACRAMENTO, Calif. – Today, the California Assembly Insurance Committee voted to approve legislation that will fill the insurance gaps for transportation network companies’ (TNCs) drivers.  TNC drivers use their personal vehicles to provide passengers a ride arranged through a smartphone app for a fee. Assembly Bill 2293 (Bonilla, D-Concord) closes the gaps in insurance coverage and requires TNCs to give drivers important disclosures. The bill was approved on a bipartisan vote.

“This bill takes a middle of the road approach and members of the Assembly understood why AB 2293 is a necessary public policy,” said Armand Feliciano, Association of California Insurance Companies vice president. “We recognize the importance of safeguarding business innovation but that must be balanced with also protecting the public. AB 2293 strikes that critical balance.”

Five property casualty insurance trade associations, representing nearly 100 percent of the California market offering both commercial and personal auto insurance, are supporting AB 2293. The trade associations include the American Insurance Association, the Association of California Insurance Companies, the National Association of Mutual Insurance Companies, the Pacific Association of Domestic Insurance Companies and the Personal Insurance Federation of California. These five trades want the public and TNC drivers to fully understand that the personal auto insurance policy does not cover the riskier and more costly commercial driving under TNC programs.

“We applaud members of the Assembly Insurance Committee for supporting AB 2293. TNC services and commercial activity begins when the TNC driver turns on the “app” and makes themselves available to provide rides. It is vital that primary insurance coverage for the TNC driver begins when the app is turned on,” said Kara Cross, PIFC general counsel. “AB 2293 is carefully crafted legislation that will clarify the insurance laws related to TNC activities without stifling business innovation.” 

AB 2293 AB 2293 will do four things:

1) Require TNCs to disclose to drivers upfront that their personal insurance may not apply when engaging in commercial TNC activities. 

2)  Define in statute that TNC activities begins once the “app” is turned on and the TNC services end when the “app” is turned off. 

3) AB 2293 clarifies that TNC insurance is primary coverage.

4) Require TNC’s liability insurance to defend and indemnify their drivers when they have a claim or accident.

AB 2293 will now move to the floor for a full vote of the Assembly.

The Association of California Insurance Companies (ACIC) is part of the Property Casualty Insurers Association of America (PCI). ACIC is PCI’s California Voice representing 363 property casualty insurance companies doing business in California. These members write $20.2 billion in premium in California insuring 36 percent of the property casualty insurance sold in the state. California members write 44 percent of personal auto insurance, 29 percent of homeowners insurance, 33 percent of commercial lines business insurance and 40 percent of private workers compensation insurance sold in California.