CARSON CITY, NV – Legislation signed by Gov. Brian Sandoval(R) on Friday will now allow transportation network companies (TNCs) to operate in the State of Nevada and ensure that TNC drivers, passengers and the public are safe and protected from any insurance gaps, according to the Property Casualty Insurers Association of America (PCI).
“We applaud both Gov. Sandoval and the Nevada Legislature for approving workable legislation that ensures TNC drivers have appropriate insurance coverage that specifically covers the driver for TNC activity from the time the app is turned on until the app is turned off,” said Mark Sektnan, PCI vice president. “This long awaited legislation solves the insurance coverage gaps and enables TNCs to bring their services to the citizens of Nevada.”
AB 176 defines transportation services as the period when a driver accepts a ride request until the passenger leaves the car and the app is turned off. The bill requires $1.5 million in coverage during this period when a passenger is in the car, the same level required for taxis. Drivers or TNCs will be required to have $50,000 for bodily injury or death of one person during the period when there is no passenger inside the vehicle and no less than $100,000 for bodily injury or death for two or more people in one accident. TNCs and drivers will be required to carry $25,000 for injury or destruction of property of others in one accident while the driver is logged into the digital network. This bill includes language contained in model legislation supported by insurers and TNCs.
“This bill provides the necessary protection to meet the unique needs of the growing sharable economy while also allowing the insurance industry to innovate new products for this new market,” said Sektnan. “Insurers are stepping up and designing innovative products which provide appropriate coverage for an affordable cost for drivers and TNCs.”