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City of Portland

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16.40.230 TNC Insurance Requirements.

A.  TNC Service Periods Defined. In order to provide protection to the public, the Transportation Network Company shall provide levels of insurance in accordance pursuant to all requirements of Chapter 16.40. Transportation Network Service is defined by three distinct periods:

1.  Period 1: The TNC Driver has logged into the App. The App is open and the driver is waiting for a match.

2.  Period 2: A passenger match has been accepted – the passenger is not yet picked up (i.e. the driver is on his/her way to pick up the passenger).

3.  Period 3: The Passenger is in the vehicle and until the passenger exits the vehicle at the destination.

B.  Providing TNC Services. All periods of TNC Service shall be covered by a general commercial liability and primary automobile insurance policy secured by the TNC, the TNC Driver, or a combination of both. Evidence of TNC insurance requirements shall be received and approved by the City prior to a TNC receiving a TNC permit.

C.  Additional Insured and Notification of Policy Changes. The TNC shall provide certificates of insurance naming the City of Portland, its officers, agents and employees as an additional insured party and give at least 30 calendar days’ notice to the Director before a policy is canceled, expires, or has a reduction in coverage. Insurance coverage requirements include commercial general liability, primary commercial vehicle insurance, worker’s compensation and employer’s liability insurance (as required by state law).

D.  Ensuring Driver and Vehicle Insurance. TNC Drivers shall be responsible for ensuring appropriate personal motor vehicle liability insurance required by State law.

E.  Insurance Requirements. Insurance requirements of this section shall be satisfied by insurance issued by a licensed insurer or an eligible surplus lines insurer in the State of Oregon.

F.  Commercial Business Insurance. TNC permit holders shall secure and maintain a Commercial General Liability policy reflecting limits of no less than $1 million per occurrence and $2 million aggregate for covered claims arising out of, but not limited to, Bodily Injury, and Property Damage, in the course of the permit holder’s work under a for-hire transportation TNC permit.

G.  Automobile Insurance. All TNC permit holders shall provide the City with proof of the following coverages:

1.  Primary insurance coverage during Period 1 with minimum liability limits of $50,000 per person for death and injury, $100,000 per incident for death and injury and $25,000 for property damage, plus any other state compulsory coverage to the extent required by law. Coverage is to be maintained by the TNC.

2.  Primary insurance coverage during Periods 2 and 3 with minimum liability limits of $1 million in combined single limit coverage for death, personal injury and property damage per incident; and $1 million in combined single limit under/uninsured motorist coverage for death, personal injury and property damage per incident. Coverage is to be maintained by the TNC.

3.  The required Automobile Liability policy shall specifically recognize the driver’s provision of TNC services or other for hire transportation and shall comply with the mandatory laws of the State of Oregon and/or other applicable governing bodies.

H.  Certification of Auto Insurance. TNCs shall provide proof of current, valid insurance for Director certification covering all affiliated TNC Drivers and Vehicles operating for such company and satisfying the minimum requirements of Periods 1, 2 and 3 in the event the insurance maintained by the driver has lapsed or does not provide the required coverage.

I.  Insurance Limits Subject to Statutory Changes. The insurance limits are subject to statutory changes as to maximum limits of liability imposed on municipalities of the State of Oregon during the permit’s term;

J.  Subject to Approval by the City Attorney’s Office. The adequacy of insurance coverage outlined in this Section is subject to the review and approval of the City Attorney’s Office.

K.  Continuous and Uninterrupted Coverage. The permit holder shall maintain continuous, uninterrupted coverage for the duration of the permit. Any lapse in insurance coverage, even if it is later backdated by the insurance company, is subject to a civil penalty.

L.  Insurance Rating. All insurance companies issuing policies within this Section shall be rated by A.M. Best Company and carry at least a rating of A.M. Best A- or better;

M.  Additional Policy Conditions: Polices required under Section 16.40.230 must also contain, include, provide for or comply with the following:

1.  A TNC shall not require or encourage a TNC Driver to secure a primary personal automobile insurance policy providing coverage for TNC activities as a condition to becoming affiliated on the TNC’s digital network, nor shall a TNC provide any incentive to any TNC Driver who secures a primary personal automobile insurance policy providing coverage for TNC activities in periods as defined in Subsection 16.40.230 G.

2.  A TNC shall disclose in writing to affiliated TNC Drivers that drivers are not required to purchase or maintain an insurance policy that provides coverage for TNC activities in any periods as defined in Section 16.40.230 G as a condition of providing TNC Services on behalf of an affiliated TNC. Additionally, a TNC shall disclose in writing to affiliated TNC Drivers that securing such a policy will not result in any material benefit or incentive of any kind provided by the affiliated TNC to the TNC Driver. A TNC shall disclose in writing to affiliated TNC Drivers that insurance maintained by the TNC pursuant to Section 16.40.230 does not include collision coverage for affiliated TNC Drivers, unless the policy secured and maintained by the TNC expressly states otherwise.

3.  A TNC shall disclose in writing to affiliated TNC Drivers the insurance coverage, including the types of coverage and limits for each coverage that the TNC provides while the affiliated TNC Driver uses an affiliated TNC Vehicle to provide TNC Services. The TNC shall also advise affiliated TNC Drivers in writing that the driver’s personal automobile insurance policies may be subject to cancellation in accordance to ORS 742.562 or might not provide coverage because the driver uses a vehicle in connection with an affiliated TNC, as specified by the terms of the policy. A TNC shall provide written disclosure to the affiliated TNC Driver that coverage required pursuant to Subsection 16.40.230 G. shall be provided by the affiliated TNC on a primary basis from the first dollar of every claim, unless a policy secured and maintained by a TNC Driver expressly states otherwise.

4.  A TNC Driver is not prohibited from voluntarily securing a primary automobile insurance policy covering the TNC Vehicle and providing coverage in any period as defined in Subsection 16.40.230 G.  A TNC Driver’s or the TNC Vehicle owner’s personal automobile insurance policy may only provide coverage during periods as defined by Section 16.40.230 to the driver, vehicle owner or any third party, if the policy expressly provides coverage for TNC activities during periods defined by Section 16.40.230 as specified by the terms of the policy.

5.  Failure to comply with all requirements defined in Section 16.40.230 shall result in the issuance of civil penalties pursuant to Section 16.40.930 and/or the suspension or revocation of a TNC permit pursuant to Section 16.40.940.