MarchReport-toFlip - page 6

Pro Seniors
carrying passengers. Indeed, personal
automobile policies explicitly exclude
the use of your personal vehicle for hire
or commercial use, known as a livery or
commercial use exclusion. However, to
date, the Insurance Services Office (ISO)
has not released a standard ridesharing
exclusion.
Below is an explanation of the three
separate periods involved in a rideshar-
ing transaction:
• Period One:
The driver is logged
into the app and driving around
looking to obtain business. There
are no passengers in the vehicle. The
driver has not been contacted and
has not accepted a ride request.
• Period Two:
The driver has been
contacted by phone or through the
app, has accepted the ride request,
and is traveling to pick up the pas-
senger.
• Period Three:
The driver arrives,
picks up the passenger, and actually
drives the passenger to his or her
destination.
When a driver pulls away after drop-
ping a customer off, his or her personal
insurance becomes their primary cover-
age; the ridesharing companies only offer
secondary coverage. If a driver gets in
a wreck during such times, it can take
a long time to sort out which insurance
company is responsible. So far, there is
little to no published, noteworthy case
law on point. Clarity may be provided
in Sacramento, where a 24-year-old Lyft
passenger, Shane Holland, was killed in
an accident in November 2014. This is the
first time a Lyft passenger has died in an
accident.
As a result of the so-called insur-
ance coverage gap, since 2014, a total of
29 states and numerous towns and cities
have implemented legislation requiring
heightened regulation of the ridesharing
industry. Even more states are expected
to join this rapid trend in 2016. Most of
the statutes are very similar in nature,
with the primary differences focusing
on the amount of coverage ridesharing
companies are required to provide. Is
your state next?
Ohio House Bill 237
Ohio House bill 237 becomes effec-
tive on March 21, 2016. Under the law:
• Ridesharing companies must obtain
a $5,000 permit from PUCO to use a
digital network to prearrange rides
between riders and drivers.
• Ridesharing companies must
disclose how fares are calculated,
provide a receipt, conduct back-
ground checks on drivers, and
maintain records for two years.
• Ridesharing companies must insti-
tute non-discrimination policies,
accommodate service animals, and
provide a method for requesting
wheelchair accessible vehicles.
• Drivers must be 19 years or older,
pass criminal background checks,
and must not have committed any
type of serious vehicle-related of-
fense in the last 13 years.
• The bill specifies drivers are not em-
ployees, nor agents of the companies,
unless a written contract between
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March 2016 CBA REPORT
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