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MemoranduminOpposition:A8195B

Re:A.8195B(Cahill)ANACTtoamendtheinsurancelaw,inrelationtotransportationnetworkcompanies

UberisaTransportationNetworkCompany(TNC)operatingincloseto500citiesthroughouttheworld,andin45
statesandtheDistrictofColumbiaintheUS.NewYorkremainsoneoftheonlystatesinthecountryinwhichaTNC
cannotmaintaininsuranceforTNCdriversinconnectionwithitsdigitalnetwork.Whilewehadtechnicalconcerns
withtheoriginalversionofthisbill,thelatestversion,unfortunately,wouldlikelymakeridesharinginsurance
prohibitivelyexpensiveinNewYorkespeciallyintheupstatecommunitiesthatmostneedtransportationoptionsand
economicopportunities.Insurancelimitsproposedwithinthebillare,inmanycases,upwardsof6timeshigherthan
whatisrequiredoftaxisthroughoutNewYorkandwhenaTNCdriverisonthewaytopickupapassengerora
passengerisinthecar,therequirementsare30timeshigherthanmosttaxisinNewYorkState(even5timeshigher
thanNewYorkCitytaxis).Additionally,otherinsurancerequirementsembeddedinthebill,someofwhicharelaidout
below,wouldsimplymakeridesharingunaffordableinNewYork.Ridesharingshouldbeavailabletocommunitiesof
allsizes..Forthesereasons,andotherslaidoutbelow,weurgeAssemblymemberstoopposeA8195B.

TheCoverageRequirementsForPeriod1AreTooHigh
Thecurrentproposalis6timeshigherthanwhatcurrentdriversarerequiredtomaintainforapersonalautoinNew
York(atleastastothetotalavailableforbodilyinjury$50Kvs.$300K).Period1activityissimilartopersonaluseof
thevehicle,becausetherisksduringthattimearenearlyidenticaltoadriversownpersonaluseofavehicle.Most
insurersnationallyareonlycharging1020%moretoextendcoverageduringthisperiod.Itisimportanttonotethat
thisminimumrequirementmandatedinlegislationisonlyafloor.Individualsarefreeto,andmanymaychooseto,
maintainmorecoveragethantheminimumrequirement.Morethan30states,NCOIL,theinsuranceindustry,andthe
ridesharingindustryhaveallsetthelimitsforPeriod1at$50k/$100korlower.

ForComparison:TaxiRequirementsinNYS:
Albany:$25K/$50KBuffalo:$25K/$50KSyracuse:$10K/$20KUtica:$25K/$50KBinghamton:
$25K/$50KSuffolk/Nassau:$25K/$50K

A.8195BJeopardizesDriversPrivacy
InordertoaddressnotificationrequirementsneededunderNewYorksnofaultlaws,thisbillsuggestsproviding
driversvehicleinformationtotheDepartmentofMotorVehiclesinamethodthatisregularlyavailabletothegeneral
public.Simplelanguagesolutionsexistthatbalanceprivacyrisksandalsoaddressthenofaultnotificationconcerns.

ComprehensiveandCollisionCoverageShouldNotBeRequired(OptionalCoverage)
ComprehensiveandcollisioncoverageisnotacompulsorycoverageforanyotherautomobileinNY.Thisisbecauseit
isnotapublicsafetyissue.Instead,thisisapuredisclosureissue,atbest.Requiringcomprehensiveandcollision
createsaclearmoralhazardandwillactuallyleadtomoreuninsureddriversonNYroadsaspeopleattempttogame
buyingtheirowndaytodayinsuranceandinsteaddrivewithaTNCappinthebackground.

NoLocalPreemptionofInsurance
Statewidestandardscreateauniformregulatoryregimethatallowcommunitiesofallsizestoenjoythebenefitsof
ridesharing.Failingtoaddressthiswilllikelyreducetheviabilityofridesharingtoonlythelargestcommunities,at
best.SensiblestateregulationsforexamplehaveallowedcommunitieslikeFargo,NDandAmes,IAtoenjoythe
benefitsofridesharing,andUpstateNewYorkshouldbenodifferent.

TNCCoverageShouldNotbeConsideredGroupInsurance
NonownedautoinsurancepoliciesarealreadyapprovedbyDFSinNYforhomehealthcareaidesandpizzadelivery.
TNCscanusethistypeofnonownedautopolicyandshouldnotbelimitedtosolelygroupinsurance.Nonownedauto
istheclearnationwidestandardhereineverysinglestatewhereUberoperatesridesharing.