When Assemblywoman Susan Bonilla, D-Oakley, amended her measure to regulate transportation network companies, Uber, Lyft and others removed their opposition and are now supporting the bill.
Assembly Bill 2293 was agreed to on Wedensday by TNCs, which had opposed the bill. Following the agreement both the California State Senate and State Assembly voted to approve AB 2293.
AB 2293 provides protection for the public by establishing reasonable insurance limits and it creates a firewall that protects personal auto insurance from subsidizing commercial activities, according to the California Association of Insurance Companies, which also supports the bill.
“Through Assemblywoman Bonilla’s efforts, stakeholders were able to reach a middle ground that parties can support,” Armand Feliciano, ACIC vice president, said in a statement. “Consumers can be confident when using TNCs, there will be greater transparency on insurance matters for TNC drivers, personal auto insurance policies will be protected from commercial activities, a pathway for new insurance products has developed with reasonable insurance limits, and flexibility to allow for continued innovation.”
AB 2293 will now move to Gov. Jerry Brown’s desk.
The amendments to AB 2293 included:
- Establish a personal insurance firewall to ensure personal insurance auto policyholders will no longer cover the commercial activity of TNCs, beginning July 1, 2015.
- Lower the primary insurance coverage requirement in the timeframe formerly known as, “App On to Match,” to: $50,000/$100,000/$30,000 with excess coverage of $200,000.
- Ensure California Public Utilities Commission oversight of transportation network companies (TNC) such as Uber and Lyft.
- Expedite the approval process for new TNC insurance products.
- Have a delayed implementation date of July 1, 2015 in order for new products to be developed to meet the needs of the marketplace.
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