HB266 Alabama 2016 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2016

Title

Transportation, transportation network companies, insurance coverage and disclosure requirements, provided for

Summary

HB266 would require transportation network companies (TNCs) and their drivers in Alabama to carry specified auto insurance and provide clear disclosures about when coverage applies, with minimum limits for on-network and prearranged ride periods.

What This Bill Does

It requires TNC drivers (and the firms on their behalf) to maintain primary auto insurance that covers them while they are logged onto the TNC network and during a prearranged ride, with defined minimum limits ($50,000/$100,000/$25,000 when not on a ride; $1,000,000 during a prearranged ride). If the driver’s insurance lapses, the TNC’s insurance must cover from the first dollar. The bill also requires the TNC to disclose to the driver the specific coverage and limits before the driver can accept a ride, and to share accident-related coverage information when needed. It allows insurers to exclude certain coverages for losses occurring while the driver is on the network or providing a ride, but imposes reporting and disclosure requirements to coordinate among insurers and with law enforcement.

Who It Affects

• TNC drivers in Alabama, who must carry primary insurance meeting the specified limits and keep proof of coverage with them at all times when using the TNC network.
• TNCs and automobile insurers, who must implement the coverage requirements, provide required disclosures to drivers, and handle exclusions, coordination, and reporting in claims

Key Provisions

• Definitions establishing what counts as a digital network, personal vehicle, prearranged ride, TNC, TNC driver, and TNC rider.
• Insurance requirements (Section 2): within 90 days of the act, drivers or the TNC must maintain primary insurance recognizing TNC activity for both (a) when the driver is logged onto the digital network but not on a ride (minimum $50,000 per person/$100,000 per incident/$25,000 property damage, plus state-required coverage) and (b) during a prearranged ride (minimum $1,000,000 for death, bodily injury, and property damage, plus state-required coverage).
• Coverage may be provided by the driver, the TNC, or both, and this coverage must apply if the driver’s own insurance lapses.
• The TNC driver must carry proof of coverage and disclose coverage details to involved parties and insurers, including times logged on/off the network around an accident.
• The TNC must disclose in writing to drivers, before they can accept a ride, the coverage and limits it provides and that driver policies may not cover certain periods.
• Insurance exclusions (Section 4): insurers may exclude coverage for losses that occur while the driver is logged onto the network or providing a prearranged ride, across various policy types, and such exclusions do not invalidate other preexisting policy exclusions.
• Coordination and disclosure requirements (Sections 4(j) and 4(i)): insurers must disclose applicable coverages, exclusions, and limits to other insurers on request, and TNCs must provide precise logging times around accidents when requested.
• Claims and defense: insurers denying coverage for excluded claims have no duty to defend or indemnify those claims, and there may be contributions between insurers under a multi-insurer situation.
• Effective date: the act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Transportation