6.74.050 - Liability insurance required.
A. Before any certificate of public convenience and necessity shall be issued under this chapter by the MTLC director, or before the renewal of such certificate shall be granted, the applicant shall certify under oath to the MTLC director that all insurance coverage as required in this section is in place.
B. Minimum insurance requirements.
1. Holders of certificates of public convenience and necessity shall maintain commercial general (public) liability insurance, inclusive of contractual liability, in an amount of not less than one million dollars written on an occurrence basis.
2. Such holders shall also maintain commercial automobile liability insurance in an amount of not less than an amount to be set by the MTLC by rule, in consideration of the type of vehicle and the number of passengers it is designed to carry, and uninsured/underinsured motorist insurance coverage in an amount not less than twenty-five thousand dollars (bodily injury per person)/fifty thousand dollars (per accident)/fifteen thousand dollars (for property damage). All vehicles permitted under a single certificate shall be covered under one master policy held by that certificate holder with coverage of not less than one million dollars combined single limit. The holder of the certificate of public convenience and necessity shall certify under oath to the MTLC that it has met and will continue to meet all requirements as necessary to ensure that coverage remains in force for each passenger vehicle for hire currently or in future affiliated with the holder of the certificate of public convenience and necessity. Documentation of compliance with these requirements shall be available to the MTLC staff upon request. In the case of a TNC, the TNC's commercial automobile liability insurance coverage and uninsured/underinsured motorist insurance coverage shall be consistent with the provisions of subsections B.3. and C. below.
3. Automobile liability insurance with regard to TNC vehicles may either be consistent with subsection C., below, or be a policy of the TNC operator in which case the TNC operator's minimum policy limits shall consist of amounts to be set by the MTLC by rule, including for bodily injury per person, per accident, property damage and uninsured/underinsured motorist insurance coverage for bodily injury, per accident and property damage, for incidents occurring while the TNC operator is active on the TNC digital platform or with regard to uninsured/underinsured motorist insurance coverage, for incidents occurring while there is a passenger in the TNC vehicle.
4. The insurance company must be licensed to do business in the State of Tennessee or an eligible surplus line with the Tennessee Department of Commerce and Insurance and have a rating from AM Best or another other equivalently reliable rating system that meets the requirements of the rules or regulations adopted by the MTLC. Surplus line insurance may be required to have a higher rating than insurance from a company licensed to do business in the State of Tennessee.
C. Insurance Alternatives for TNC's.
1. To cover TNC operators that do not maintain a personal automobile liability policy as provided in subsection B.3, above, the holder of a TNC's certificate of public necessity and convenience shall, in the alternative, maintain one master commercial automobile liability policy held by that holder of the certificate of public convenience and necessity with coverage of not less than one million dollars combined single limit, under which all vehicles permitted under that holder's single certificate of public convenience and necessity and not already covered by a policy of the TNC operator meeting the requirements of subsection B.3., above, shall be covered, and which policy shall provide primary coverage for any incident that arises out of the operation of a TNC vehicle affiliated with that TNC any time after the TNC operator operating that TNC vehicle has accepted a ride on the TNC digital network or dispatch system until the passenger exits the vehicle. The TNC shall also provide uninsured/underinsured motorist insurance coverage, to be effective while there is a passenger in the TNC vehicle, in an amount not less than twenty-five thousand dollars (bodily injury per person)/fifty thousand dollars (per accident)/fifteen thousand dollars (for property damage).
2. The TNC's policy shall be supplemental to the TNC operator's personal policy at times when the TNC operator is logged onto the TNC digital network or dispatch system but has not accepted a ride or is not carrying a passenger, but, in the event that with regard to a claim that arises out of TNC operations during this time period, the TNC operator's personal insurance policy is not in place, denies coverage, or does not cover the full amount of the damages, the TNC's insurance shall become primary coverage for the TNC vehicle of that particular TNC operator up to limits for this period to be set by the MTLC by rule.
3. The holder of the TNC's certificate of public convenience and necessity shall certify under oath to the MTLC that it has met and will continue to meet all requirements as necessary to ensure that coverage remains in force for each TNC vehicle currently or in future affiliated with the TNC and not already covered by a policy of the TNC operator meeting the requirements of subsection B.2., above. Documentation of compliance with these requirements shall be available to the MTLC staff upon request.
D. Effect of no insurance. The failure of a holder to maintain continuous coverage of insurance as required by this section or to ensure that coverage is maintained shall be deemed sufficient cause for revocation of the certificate of public convenience and necessity. The holder of the certificate of public convenience and necessity shall quarterly certify to the MTLC director that they maintain current endorsements including all of the applicable above-described coverages as to each permitted driver and vehicle pertaining to said certificate holder's certificate or that they ensure that such endorsements are maintained, and shall promptly make all such documentation available to the MTLC director upon request.
(Amdt. 1 to Ord. BL2014-952 § 1, 2014; Ord. BL2014-952 § 1, 2014)
