(a) Financial responsibility of transportation network companies. A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that:
(1) Recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport passengers for compensation and covers the driver:
A. While the driver is logged on to the transportation network company's digital network; or
B. While the driver is engaged in a prearranged ride.
(2) The following automobile insurance requirements shall apply while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride:
A. Primary automobile liability insurance in the amount of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident, and $25,000 for property damage.
B. Uninsured and underinsured motorist coverage at the minimum limits required by SDCL § 58-11-9.4.
C. The coverage requirements of this division may be satisfied by any of the following:
1. Automobile insurance maintained by the transportation network company driver; or
2. Automobile insurance maintained by the transportation network company; or
3. Any combination of subparagraphs (1) and (2).
(3) The following automobile insurance requirements shall apply while a transportation network company driver is engaged in a prearranged ride:
A. Primary automobile liability insurance that provides at least $1,000,000 for death, bodily injury and property damage;
B. Uninsured and underinsured motorist coverage at the minimum limits required by SDCL § 58-11-9.4.
C. The coverage requirements of this subsection may be satisfied by any of the following:
1. Automobile insurance maintained by the transportation network company driver; or
2. Automobile insurance maintained by the transportation network company; or
3. Any combination of subparagraphs (2) and (3).
(4) If insurance maintained by driver in division (a) has lapsed or does not provide the required coverage, insurance maintained by a transportation network company shall provide the coverage required by division (a) beginning with the first dollar of a claim and have the duty to defend such claim.
(5) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.
(6) Insurance required by division (a) may be placed with an insurer licensed in the state or with a surplus lines insurer eligible under Chapter 58-32 of the South Dakota Insurance Code.
(7) A transportation network company driver shall carry physical or digital proof of coverage satisfying division (a) with him or her at all times during his or her use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, automobile insurers and investigating police officers, upon request pursuant to Chapter 32-35 of the South Dakota Insurance Code. Upon such request, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether he or she was logged on to the transportation network company's digital network or on a prearranged ride at the time of an accident.
(8) In a claims coverage investigation, transportation network companies shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the 12 hour period immediately preceding and in the 12 hour period immediately following the accident and disclose to one another a clear description of the coverage, exclusions and limits provided under any automobile insurance maintained under division (a).
(b) A TNC automobile insurance policy shall not be modified or canceled without 30 days' actual notice to the city's licensing specialist.
(c) The cancellation or other termination of any required automobile insurance policy shall automatically revoke and terminate all licenses issued for the TNC, unless another policy(ies), complying with this section, shall be provided and in effect at the time of such cancellation or termination.
(Ord. 108-15, passed 11-2-2015)