S486

An Act concerning food delivery network companies and insurance and supplementing P.L.2017, c.26 (C.39:5H-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. A food delivery network company driver, food delivery network company, or any combination of the two shall maintain primary automobile insurance that recognizes that the driver is a food delivery network company driver, or otherwise uses a personal vehicle to provide prearranged food delivery, and covers the driver: (1) while the driver is logged on to the food delivery network company's digital network but is not providing a prearranged food delivery; or (2) while the driver is providing a prearranged food delivery.

b. Whenever a food delivery network company driver is logged on to the food delivery network company's digital network and is available to receive a prearranged food delivery request, but is not providing a prearranged food delivery, the food delivery network company driver, food delivery network company, or any combination of the two shall maintain the following insurance coverage:

(1) primary automobile liability insurance in the amount of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage;

(2) primary personal injury protection benefits that provide coverage amounts selected pursuant to section 4 of P.L.1972, c.70 (C.39:6A-4); and

(3) uninsured and underinsured motorist coverage to the extent required pursuant to section 2 of P.L.1968, c.385 (C.17:28-1.1).

c. Whenever a food delivery network company driver is providing a prearranged food delivery, the food delivery network company driver, food delivery network company, or any combination of the two shall maintain the following insurance coverage:

(1) primary automobile liability insurance in the amount of at least $1,500,000 for death, bodily injury, and property damage;

(2) primary automobile insurance for medical payments benefits in an amount of at least $10,000 per person per incident, which shall only apply to and provide coverage for the benefit of the food delivery network company driver; and

(3) uninsured and underinsured motorist coverage in an amount of at least $1,500,000.

d. If the insurance coverage maintained by a food delivery network company driver pursuant to subsections b. and c. of this section has lapsed or does not provide the required coverage, insurance maintained by the food delivery network company shall provide the coverage required by subsections b. and c. of this section beginning with the first dollar of a claim and the food delivery network company shall have the duty to defend the claim.

e. Coverage under an automobile insurance policy maintained by the food delivery network company shall not be dependent upon a private passenger automobile insurer first denying a claim nor shall a private passenger automobile insurance policy be required to first deny a claim.

f. Insurance coverage required by this section may be obtained from an insurance company duly licensed to transact business under the insurance laws of this State or by an eligible surplus lines insurer under section 11 of P.L.1960, c.32 (C.17:22-6.45).

g. The coverage required pursuant to subsections b. and c. of this section shall be deemed to meet the financial responsibility requirements of the "Motor Vehicle Security-Responsibility Law," P.L.1952, c.173 (C.39:6-23 et seq.), P.L.1972, c.197 (C.39:6B-1 et seq.), and P.L.1972, c.70 (C.39:6A-1 et seq.).

h. A food delivery network company driver shall carry proof of insurance required pursuant to subsections b. and c. of this section at all times while using a personal vehicle in connection with a food delivery network company's digital network. In the event of an accident, a food delivery network company driver shall, upon request, provide insurance coverage information to the directly interested parties, automobile insurers, and investigating law enforcement officers. The insurance coverage information may be displayed or provided in either paper or electronic form as provided in R.S.39:3-29. A food delivery network company driver shall, upon request, disclose to the directly interested parties, automobile insurers, and investigating law enforcement officers whether the driver was logged on to a digital network as a driver or whether the driver was providing a prearranged food delivery at the time of the accident.

i. If a food delivery network company's insurer makes a payment for a claim for damage to a motor vehicle in which a lienholder holds a security interest, then the food delivery network company shall cause its insurer to issue the payment directly to the business repairing the motor vehicle or jointly to the owner of the motor vehicle and the primary lienholder on the covered motor vehicle.

j. The limitation on lawsuit option set forth in subsection a. of section 8 of P.L.1972, c.70 (C.39:6A-8) shall not be assertable by a food delivery network company or a food delivery network company driver in any action for damages arising from a prearranged food delivery, or be asserted against any party not receiving personal injury protection benefits in any action for damages arising from a prearranged food delivery.

k. As used in this act:

“Food delivery network company” means a corporation, partnership, sole proprietorship, or other entity that is registered as a business in the State or operates in this State, and uses a digital network to connect a food delivery network company customer to a food delivery network company driver to provide for the prearranged delivery of food.

“Food delivery network company customer” or “customer” means a person who uses a food delivery network company’s digital network to connect with a food delivery network company driver to receive a prearranged delivery of food from the driver using the driver’s personal vehicle.

“Food delivery network company driver” or “driver” means a person who receives connections to potential customers and related services from a food delivery network company in exchange for payment of a fee to the food delivery network company, and uses a personal vehicle to offer or provide a prearranged food delivery to a customer upon connection through a digital network controlled by a food delivery network company in return for compensation or payment of a fee.

"Prearranged food delivery" means the delivery of prepared, ready-to-serve food by a food delivery network company driver to a food delivery network company customer, beginning when a driver accepts a delivery requested by a customer through a digital network controlled by a food delivery network company, continuing while the driver transports the customer’s requested food, and ending upon delivery of the food. A prearranged food delivery shall not include transportation provided using an autocab, taxi, limousine, autobus, jitney, motor bus, or other for-hire vehicle.

2. A food delivery network company shall not permit a food delivery network company driver to accept a request for a prearranged food delivery on the food delivery network company's digital network until the food delivery network company discloses in writing to the driver:

a. the insurance coverage, including the types and limits of coverage, that the food delivery network company provides while the driver uses a personal vehicle in connection with a food delivery network company's digital network; and

b. that the driver's own private passenger automobile insurance policy, depending on the driver's private passenger automobile insurance policy, may or may not provide any coverage while the driver is logged on to the food delivery network company's digital network as a driver and is available to receive requests for prearranged food deliveries or is providing a prearranged food delivery.

3. This act shall take effect on first day of the sixth month following the date of enactment.

STATEMENT

This bill requires food delivery network companies and food delivery company network drivers to maintain certain levels of automobile insurance. Pursuant to the bill, a “food delivery network company” means a corporation, partnership, sole proprietorship, or other entity that is registered as a business in the State or operates in this State, and uses a digital network to connect a food delivery network company customer to a food delivery network company driver to provide for the prearranged delivery of prepared, ready-to-serve food.

Under the bill, a food delivery network company driver, food delivery network company, or any combination of the two is to maintain primary automobile insurance that recognizes that the driver is a food delivery network company driver, or otherwise uses a personal vehicle to provide prearranged food delivery, and covers the driver: while the driver is logged on to the food delivery network company's digital network but is not providing a prearranged food delivery; or while the driver is providing a prearranged food delivery.

The bill provides that whenever a food delivery network company driver is logged on to the food delivery network company's digital network and is available to receive a prearranged food delivery request, but is not providing a prearranged food delivery, the food delivery network company driver, food delivery network company, or any combination of the two is to maintain the following insurance coverage:

(1) primary automobile liability insurance in the amount of at least $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage;

(2) primary personal injury protection benefits that provide coverage amounts selected pursuant to section 4 of P.L.1972, c.70 (C.39:6A-4); and

(3) uninsured and underinsured motorist coverage to the extent required pursuant to section 2 of P.L.1968, c.385 (C.17:28-1.1).

In addition, under the bill, whenever a food delivery network company driver is providing a prearranged food delivery, the food delivery network company driver, food delivery network company, or any combination of the two is to maintain the following insurance coverage:

(1) primary automobile liability insurance in the amount of at least $1,500,000 for death, bodily injury, and property damage;

(3) uninsured and underinsured motorist coverage in an amount of at least $1,500,000.

The bill also provides that a food delivery network company is not to permit a food delivery network company driver to accept a request for a prearranged food delivery on the food delivery network company's digital network until the food delivery network company makes certain written disclosures to the driver.