American Property Casualty Insurance Association
  • Staff Contact: Jeffrey Brewer     
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Contact:

Jeffrey Brewer

Phone:

847-553-3763

Email:

Jeffrey.brewer@pciaa.net

 

 

FOR RELEASE ON RECEIPT

June 3, 2014

Ride Share Legislation with Consumer Protections Passes Illinois Legislature

CHICAGO – The Illinois Legislature took a positive step toward providing a uniform statewide approach to regulating transportation networking companies (TNCs) and closing insurance gaps by passing House Bills 4075 and 5331 this session, according to the Property Casualty Insurers Association of America (PCI).

“While supporting innovation and competition in the transportation and insurance marketplaces, PCI has been adamant in Illinois and across the country that TNC legislation address the gaps in insurance coverage and ensure that drivers, passengers and the public are protected if there is an accident,” said Jeffrey Junkas, regional manager for PCI. “Key for insurance concerns, the Illinois Legislature is requiring commercial liability insurance to be primary and that it is in effect the entire time a driver’s app is on and he or she is available to accept or has a passenger. This creates a bright line rule that will help to ensure that commercial insurance exposure is not inappropriately shifted to personal auto insurance, as that could force premiums for all drivers to increase.”

Together HB 4075 and 5331 will establish regulations on TNCs that are like those that apply to other similar commercial driving enterprises. It requires background checks on drivers, vehicle inspections and chauffeur licenses for drivers who work more than 36 hours in any 2 week (14 consecutive day) period. Additionally, the legislation requires conspicuous disclosure to TNC drivers about insurance coverages provided by the TNC.

The bills are now eligible to be sent to the governor.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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