WASHINGTON (3/28/15)--Legislation regulating Transportation Network Company (TNC) vehicles--covering services like Uber and Lyft and including insurance requirements--continues to be a hot topic in the states and among some credit unions.
A number of state credit union leagues are active--or have been in recent years--in advocating for rules that would protect credit unions and other lenders with an interest in a car being used as a TNC vehicle.
"The primary credit union concern," explained Shelton Roulhac, a CUNA director of advocacy, "is that the vehicles used for these services are personal vehicles and oftentimes, have loans on them.
"Credit unions and other lien holders require proper collision insurance to protect their collateral and personal auto insurance policies do not cover commercial use, thus leaving lapses in coverage."
Some TNCs have insurance policies that may, under certain circumstances, pay claims by drivers and passengers. However, Roulhac noted, depending on the policy terms, there still could be gaps in coverage, thus prompting legislation to require sufficient coverage.
Thus far in the 2015 session, TNC legislation has been enacted in Virginia and is awaiting the governor's signature in Utah. In 2014, bills were enacted in California, Colorado, Connecticut and Rhode Island.
And currently legislation is pending in 34 other states. See the resource link for a full listing of where TNC bills await final action.