LIMOUSINE, TAXICAB, AND TRANSPORTATION NETWORK COMPANY ACT (EXCERPT)
Act 345 of 2016
***** 257.2125.new THIS NEW SECTION IS EFFECTIVE MARCH 21, 2017 *****
257.2125.new Terms of service; disclosure by transportation network company to prospective driver.
A transportation network company shall disclose prominently, with a separate acknowledgment of acceptance for subdivisions (a) and (c), to a prospective transportation network company driver in the transportation network company driver's written terms of service all of the following before that driver may accept a request for a transportation network company prearranged ride on the transportation network company's digital network:
(a) "Most personal auto insurance policies in Michigan exclude comprehensive and collision coverage while you carry passengers for charge in your motor vehicle and are logged into a transportation network company's digital network. I acknowledge that my personal auto insurance policy may exclude comprehensive and collision coverage while my motor vehicle is carrying passengers for charge.".
(b) "Is your motor vehicle subject to a lease, loan, or lien? Please indicate Yes or No: ________.".
(c) "Most auto loans and leases in Michigan require the borrower to ensure that the motor vehicle is protected by comprehensive and collision coverage. If your written agreement with your lessor or loan provider requires you to maintain comprehensive and collision insurance on the motor vehicle, using the motor vehicle while logged onto a transportation network company's digital network may violate your legal obligation to your lessor or loan provider under Michigan law. I acknowledge that I may breach the terms of my auto loan or lease if I fail to secure appropriate or additional comprehensive and collision coverage during the term of the loan or lease, while I carry passengers for charge in my motor vehicle.".
History: 2016, Act 345, Eff. Mar. 21, 2017
© 2015 Legislative Council, State of Michigan