North Carolina General Statutes 20-280.4. Financial responsibility
(a) Except as provided in subsection (n) of this section, TNC drivers or transportation network companies must maintain primary automobile insurance that meets all of the following requirements:
(1) Recognizes that the driver is a TNC driver or uses a vehicle to transport passengers for compensation.
Terms Used In North Carolina General Statutes 20-280.4
- Contract: A legal written agreement that becomes binding when signed.
- Dependent: A person dependent for support upon another.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- in writing: may be construed to include printing, engraving, lithographing, and any other mode of representing words and letters: Provided, that in all cases where a written signature is required by law, the same shall be in a proper handwriting, or in a proper mark. See North Carolina General Statutes 12-3
- Lien: A claim against real or personal property in satisfaction of a debt.
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(2) The following automobile insurance requirements apply while a TNC driver is logged on to the transportation network company’s online-enabled application or platform but is not providing TNC service:
a. Primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) because of death of or bodily injury to one person in any one accident and, subject to said limit for one person, one hundred thousand dollars ($100,000) because of death of or bodily injury to two or more persons in any one accident, and at least twenty-five thousand dollars ($25,000) because of injury to or destruction of property of others in any one accident.
b. Combined uninsured and underinsured motorist coverage that complies with the requirements of N.C. Gen. Stat. § 20-279.21(b)(3) and (b)(4).
(3) The following automobile insurance requirements apply while a TNC driver is engaged in TNC service:
a. Primary automobile liability insurance in the amount of at least one million dollars ($1,000,000) because of death of one or more persons, bodily injury to one or more persons, injury to or destruction of property of others, or any combination thereof, in any one accident.
b. Combined uninsured and underinsured motorist coverage that complies with the requirements of N.C. Gen. Stat. § 20-279.21(b)(3) and (b)(4).
(4) The coverage requirements of subdivisions (2) and (3) of this subsection may be satisfied by any of the following:
a. Automobile insurance maintained by the TNC driver.
b. Automobile insurance maintained by the transportation network company.
c. Any combination of sub-subdivisions a. and b. of this subdivision.
(b) If insurance maintained by the TNC driver under subsection (a) of this section has lapsed or does not provide the required coverage, insurance maintained by the transportation network company must provide the coverage required under subsection (a) of this section beginning with the first dollar of a claim and must provide the defense of the claim.
(c) Insurance coverage under an automobile insurance policy maintained by the transportation network company must not be dependent on a personal automobile insurer denying a claim.
(d) Insurance required by this section may be placed with an insurer licensed in the State or with a surplus lines insurer eligible to write policies in the State.
(e) Insurance satisfying the requirements of this section satisfies the financial responsibility requirement for a motor vehicle.
(f) A TNC driver must carry proof of coverage satisfying the requirements of this section at all times during use of a vehicle in connection with a transportation network company’s online-enabled application or platform. In the event of an accident, a TNC driver must provide insurance coverage information directly to interested parties, automobile insurers, and investigating police officers, upon request. Upon such request, a TNC driver must also disclose to directly interested parties, automobile insurers, and investigating police officers whether the TNC driver was logged on or off of the transportation network company’s online-enabled application or platform at the time of the accident.
(g) Before any vehicle is used in connection with a transportation network company’s online-enabled application or platform, a TNC driver must notify both the insurer of the vehicle and any lienholder with an interest in the vehicle of the TNC driver’s intent to use the vehicle in connection with a transportation network company’s online-enabled application or platform.
(h) Transportation network companies must disclose in writing to potential TNC drivers the following before the TNC driver provides TNC service:
(1) The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the TNC driver uses a private passenger vehicle in connection with a transportation network company’s online-enabled application or platform.
(2) The TNC driver may not have any coverage under a personal automobile insurance policy while using the transportation network company’s online-enabled application or platform.
(3) The following notice in a distinctive clause: “If the vehicle with which you provide transportation network company services has a lien against it, you must notify the lienholder prior to providing transportation network company services of your intent to provide transportation services with the vehicle. You may disclose to the lienholder all insurance coverage information provided to you by the transportation network company. If you fail to provide the required insurance coverage under the terms of your contract with the lienholder or show evidence to the lienholder of the coverage provided by the transportation network company, you may violate the terms of your contract.”
(i) Insurers that write automobile insurance in the State may exclude coverage under the policy issued to an owner or operator of a personal vehicle for any loss that occurs while the driver is logged on to a transportation network company’s online-enabled application or platform or while the driver provides TNC service. This right to exclude all coverage applies to any coverage included in an automobile insurance policy, including all of the following:
(1) Liability coverage for bodily injury and property damage.
(2) Personal injury protection coverage.
(3) Uninsured and underinsured motorist coverage.
(4) Medical payments coverage.
(5) Comprehensive physical damage coverage.
(6) Collision physical damage coverage.
(j) Automobile insurers that exclude the coverage described in subsection (i) of this section have no duty to defend or indemnify any claim expressly excluded. An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy has a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of this section.
(k) No insurer is required to sell a policy of insurance providing the coverage required by this section.
(l) Notwithstanding N.C. Gen. Stat. § 58-37-35(b)(1)e., no insurance policy providing coverage required by this section is cedable to the North Carolina Reinsurance Facility due solely to the requirements of this section.
(m) In a claims coverage investigation or accident, a TNC driver, transportation network companies, any insurer potentially providing coverage under this section, and other directly involved parties must exchange the following information:
(1) Description of the coverage, exclusions, and limits provided under any insurance policy.
(2) Precise times that a TNC driver logged on and off of the transportation network company’s online-enabled application or platform in the 12-hour period immediately preceding and in the 12-hour period immediately following the accident.
(3) Precise times that a TNC driver provided TNC service in the 12-hour period immediately preceding and in the 12-hour period immediately following the accident.
(n) This section does not apply to brokering transportation network companies. (2015-237, s. 1; 2022-46, s. 22(a).)