American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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  • November 18, 2014
  • PCI Addresses Insurance Gaps Involving Transportation Network Companies in North Carolina
  • The Property Casualty Insurers Association of America (PCI) testified today before the North Carolina Revenue Laws Study Committee regarding transportation network companies (TNCs) such as Uber and Lyft. The Committee is charged with studying the issue. The following statement can be attributed to Oyango Snell, counsel, state government relations, who is available for interviews and to provide background for reporters covering this issue.

    “PCI supports innovation, but it’s important that the insurance gaps are closed and the public is properly protected. PCI referenced AB2293, a new law in California, which protects consumers by closing the gaps in insurance coverage for commercial ridesharing activities. Both insurance industry and TNC companies worked together on this model legislation. The current ridesharing business model in North Carolina presents a number of insurance issues that need to be addressed to protect the interests of all drivers, passengers and the public.

    “Several TNCs boast of having $1 million liability insurance, but the drivers may be surprised to learn that it doesn’t always cover damage to their car or injuries sustained by the driver. Additionally, it should be made clear when the TNCs coverage on the vehicle is in effect and when it is not. A too narrow definition of when the ridesharing activity begins and ends may leave the public at risk and drivers uninsured. It’s important that the drivers are covered from the time when the app is turned on until the app is turned off.

    “PCI outlined a series of ‘essential elements' that require all stakeholders have a clear expectation of what insurance coverage is being provided, when it’s being provided and by whom.

    "While there is currently no pending legislation, many anticipate proposals will be considered next session. PCI will continue to be involved in this issue, and work with committee members to ensure they understand the implications of these gaps.”
  • PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $195 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 28 percent of the homeowners market, 33 percent of the commercial property and liability market and 35 percent of the private workers compensation market.
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