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American Insurance Association Hails Passage of AB 2293; Urges Governor Brown to Sign TNC Insurance Bill into Law

WASHINGTON, D.C., September 2, 2014 - Steven Suchil, Western region assistant vice president for the American Insurance Association (AIA), issued the following statement today following the passage of AB 2293, legislation that will fix gaps in insurance coverage of Transportation Network Companies (TNCs).  AB 2293, authored by Assemblywoman Susan Bonilla, requires TNCs to:

  1. Establish insurance liability and coverage amounts while designating when each amount would enter into effect;
  2. Inform drivers of the TNC`s insurance coverage and liability limits;
  3. Cooperate with insurers in claims coverage investigations;
  4. Disclose that the driver`s personal auto policy will not provide comprehensive or collision coverage from log-on until log-off.

The bill passed the California State Senate by a vote of 30 to 4 and now goes to Governor Jerry Brown (D-CA).  If signed into law, AB 2293 will take effect on July 1, 2015. 

Mr. Suchil`s statement follows:

"AIA hails the passage of AB 2293 and thanks Assemblywoman Susan Bonilla for her leadership on this legislation.  We urge Governor Brown to sign AB 2293 into law.

"The primary insurance concern regarding the use of TNCs is about ensuring that drivers and passengers are appropriately protected when using ride-sharing services.  Personal automobile policies are not, and were never, designed to cover acts conducted on a commercial basis.  AB 2993 addresses these concerns by fixing the current gaps in insurance coverage."

Media Contact:

Benjamin Tomchik
(202) 828-7129

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Source: American Insurance Association via GlobeNewswire