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Senate Commerce Committee Statement to Senate, No. 486 (March 14, 2022)

Summary

This is the Senate Commerce Committee Statement to Senate, No. 486, State of New Jersey, dated March 14, 2022. The committee reports favorably Senate Bill No. 486, which requires food delivery network companies and food delivery company network drivers to maintain certain levels of automobile insurance. While a driver is logged on to the digital network and available to receive a request but not providing a prearranged food delivery, the bill calls for primary automobile liability insurance of at least $50,000 for death or bodily injury per person, $100,000 per incident, and $25,000 for property damage. While a driver is providing a prearranged food delivery, it calls for primary automobile liability insurance of at least $1,500,000 for death, bodily injury, and property damage, and medical payments coverage of at least $10,000 per person per incident.

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“Senate Commerce Committee Statement to Senate, No. 486 (March 14, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-03-14-scm-s486-s1-badbd5f18b/, SHA-256 caf4ab69aaba6b00cfbdf8eda66a059549a0323839bd2f96a05ddd3e5cd47b7d.

Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                   SENATE, No. 486

 STATE OF NEW JERSEY
                     DATED: MARCH 14, 2022

   The Senate Commerce Committee reports favorably Senate Bill
No. 486.
   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
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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;
   (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.
   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.
    This bill was pre-filed for introduction in the 2022-2023 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed.

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