Senate Commerce Committee Statement to Senate, No. 486 — State of New Jersey (March 14, 2022)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated March 14, 2022, reports favorably Senate Bill No. 486, which requires food delivery network companies and food delivery network company drivers to maintain certain automobile insurance. While a driver is logged on and available but not delivering, coverage must include primary liability of at least $50,000 per person, $100,000 per incident and $25,000 for property damage. While a driver is providing a prearranged delivery, liability coverage must be at least $1,500,000, plus medical payments of at least $10,000 per person per incident. A company may not let a driver accept a delivery request until it makes certain written disclosures to the driver.

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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 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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