American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
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  • February 10, 2015
  • Kansas House Insurance Committee to Hear Legislation Closing TNC Insurance Gaps
  • TOPEKA, KS – The Kansas House Committee on Insurance will hold a hearing Wednesday, February 11 to consider legislation that closes the insurance gaps for transportation network companies (TNCs), such as Uber and Lyft, that provide commercial ridesharing services.  House Bill 2249 will ensure that TNCs and their drivers have consumer protections in place including appropriate insurance coverage, said the Property Casualty Insurers Association of America (PCI).

    “House Bill 2249 is a step in the right direction for drivers, passengers and the Sunflower state’s consumers because it protects Kansas drivers from subsidizing the insurance costs of TNCs,” said Kelly Campbell, PCI vice president for state affairs. “This bill contains the essential elements that are critical in protecting consumers and ensuring that drivers and passengers understand what is covered, when and by what insurance product.”

    House Bill 2249 requires TNCs to disclose to drivers that their personal auto policy will not provide coverage when they use their personal car in a commercial ridesharing program.  TNCs or their drivers will be required to have primary insurance for drivers of no less than $1,000,000, while engaged in a prearranged ride.  While a driver has the app on and is available to accept rides HB 2249  requires TNCs or the driver to have no less than $50,000 for death and personal injury per person, $100,000 dollars for death and personal injury per incident, and $25,000 for property damage.  The committee’s legislation also clearly spell outs that the personal auto policy will not provide coverage when a personal car is used in a commercial ride-sharing program.

    “This bill also encourages development of new insurance products to meet the needs of the growing commercial ridesharing services,” said Campbell.  “Insurers are responding to the new market by designing new products and making them available in the states that are enacting common sense sound regulatory structures for TNC services.”

  • PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $195 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 28 percent of the homeowners market, 33 percent of the commercial property and liability market and 35 percent of the private workers compensation market.
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