American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
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Nicole Mahrt Ganley







April 29, 2014

SB 125 Outlines TNCs’ Insurance Responsibilities

DENVER, CO – Today, the Colorado Senate voted to concur on House amendments to SB 125 and the bill is now on the its way to Gov. Hickenloopper, said the Property Casualty Insurers Association of America (PCI).   SB 125 is a bill to regulate Transportation Network Companies (TNCs). The following statement can be attributed to Kelly Campbell, PCI vice president.

“The final approved version of SB 125 deals with one of PCI’s critical priorities; it sets up the framework for TNCs to provide primary insurance coverage for all commercial activity including when the driver logs onto their app and is available for hire through the time period when they have a passenger in the vehicle and until the driver logs off the app and is no longer available to accept rides. 

The phased-in approach for procuring insurance coverage as outlined in SB 125, which requires coverage to be in place for all commercial activity by January 15, 2015, allows the TNCs and the insurance industry to adjust to this newly evolving market.  During this transition period, between now and January 15, 2015, it is critical that people engaged in TNC services as a driver or a passenger understand their insurance coverage.  SB 125 outlines the TNCs’ responsibility for providing insurance coverage for their drivers’ commercial activities and it also clearly states that the personal auto policy is not required to provide coverage for TNC services.  The bill also requires an interim study by the Division of Insurance to examine whether or not the coverage limits currently prescribed in SB 125 are appropriate.  Therefore, we expect more analysis and review will take place as the issue evolves in Colorado and across the country.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.