LEGISLATIVE COUNSEL'S DIGEST
AB 1871, as amended, Jones.
Private passenger motor
vehicle insurance coverage: personal vehicle sharing.
Existing law prohibits an insured motor vehicle from being
classified as a common carrier, livery, or for-hire vehicle solely
for the reason that the named insured is performing volunteer
services for a nonprofit charitable organization or governmental
agency consisting of providing social service transportation, as
defined.
This bill would prohibit a private passenger motor vehicle
,
as defined, from being classified for insurance purposes as a
commercial, for-hire, or permissive use vehicle, or livery solely on
the basis of it being used for personal vehicle sharing, as defined,
if the annual revenue received by the
motor vehicle's owner that is generated by personal vehicle sharing does
not exceed the annual expenses of owning and operating the vehicle,
including, but not limited to, depreciation, interest, lease
payments, auto loan payments, insurance, maintenance, parking, and
fuel, and the personal vehicle sharing is conducted pursuant to a
personal vehicle sharing program.
The bill would define a personal vehicle sharing program as a
legal entity qualified to do business in the state that facilitates
personal vehicle sharing, as specified. The bill would require a
personal vehicle sharing program, among other things, during all
times that the vehicle is engaged in personal vehicle sharing, to
provide insurance coverage, as specified, and collect, maintain, and
make available to the vehicle owner and the vehicle owner's primary
automobile liability insurer verifiable electronic records
identifying the date, time, initial and final locations of the
vehicle, and miles driven when it is being used as part of the
personal vehicle sharing program.
The The bill would limit the circumstances under which the
motor vehicle owner's
automobile liability insurance can be subject to liability, and require that
automobile insurance policies not be canceled, voided, terminated,
rescinded, or nonrenewed solely on the basis that the
private
passenger motor vehicle has been made available for personal
vehicle sharing. The bill would authorize the insurer of the vehicle
to exclude any and all coverage afforded under the vehicle owner's
automobile insurance policy while the vehicle is used by a person
other than the owner as part of a personal vehicle sharing program
, and would provide the primary and excess insurers
of owners, operators, and maintaining of the vehicle with
the right to inform the insured that it has no duty to defend or
indemnify any person or organization for liability for any loss that
occurs during use of the vehicle in a personal vehicle
sharing program .
Comments/questions on AB 1871 (Jones): Private passenger motor vehicle insurance coverage: personal vehicle sharing.
