American Property Casualty Insurance Association
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Nicole Mahrt Ganley






September 17, 2014

California Governor Signs Bill Fixing TNC’s Insurance Gaps  

ACIC says AB 2293 is a well-balanced law that protects the public and encourages new product innovation.

SACRAMENTO – Today, Governor Jerry Brown-D signed AB 2293 by Assemblywoman Susan Bonilla (D-Concord), legislation that will protect the public by establishing reasonable insurance requirements for Transportation Network Companies (TNCs) and their drivers. AB 2293 also creates a firewall that protects personal auto insurance policyholders from subsidizing commercial activities and gives TNCs flexibility to meet the new insurance requirements, says the Association of California Insurance Companies (ACIC).

“Once again California is leading the way in forging public policy to meet the needs of new innovations.  We applaud Governor Brown for signing this important legislation and Assemblywoman Bonilla for championing it through the legislative process,” said Armand Feliciano, ACIC vice president. “Assemblywoman Bonilla and Governor Brown brought stakeholders together and were able to reach a middle ground that most of the parties, including Uber and Lyft, could support. Consumers can be confident when using TNCs that they are protected and there will be greater transparency on insurance matters for TNC drivers.  Personal auto insurance policies will be protected from commercial activities, and a pathway for new insurance products has developed with reasonable insurance limits, and flexibility to allow for continued innovation.”

The California State Senate voted 30 to 4 to approve AB 2293.  The California State Assembly voted 67 to 0 for AB 2293.

“The measure protects consumers and encourages innovation in the insurance marketplace,” said Feliciano. “AB 2293 has a delayed implementation date of July 1, 2015, so insurers and the California Department of Insurance can develop and approve the necessary new products designed specifically to meet the needs of TNC drivers. Other states examining how to balance insurance and TNCs can look to California’s new law as a great starting place.”

AB 2293 will now take effect on July 1, 2015. 


Among its provisions, AB 2293:

·         Establishes a personal insurance firewall to ensure personal insurance auto policyholders will no longer cover the commercial activity of TNCs, beginning July 1, 2015.

·         Lowers 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.

·         Ensures California Public Utilities Commission oversight of transportation network companies (TNC) such as Uber and Lyft.

·         Expedites the approval process for new TNC insurance products.

·         Has a delayed implementation date of July 1, 2015 in order for new products to be developed to meet the needs of the marketplace.