Nevada Governor Approves Ridesharing Legislation

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.”

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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 $183 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, 27 percent of the homeowners market, 32 percent of the commercial property and liability market and 34 percent of the private workers compensation market.

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Quick facts

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.
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The bill requires $1.5 million in coverage during this period when a passenger is in the car, the same level required for taxis.
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Quotes

"We applaud both Gov. Sandoval and the Nevada Legislature for approving workable legislation that ensures TNC drivers have appropriate insurance coverage"
Mark Sektnan, PCI vice president
“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,”
-Mark Sektnan, PCI vice president