AB 395

This bill generally requires that peer-to-peer motor vehicle sharing programs

assume liability, as specified under the bill, for the owners of shared vehicles and sets

certain other requirements on those programs.

Under the bill, a peer-to-peer motor vehicle sharing program is a business

platform that connects a motor vehicle owner with an individual to enable the

individual's use of the motor vehicle for financial consideration. The individual must

have a driver's license to be able to participate in the sharing program.

The bill requires the sharing program to assume liability for the shared vehicle

owner for bodily injury or property damage to third parties, or for uninsured and

underinsured motorist or personal injury protection losses, in amounts stated in the

sharing agreement, which cannot be less than the minimum coverage required

under Wisconsin law. However, the sharing program is not required to assume

liability if the vehicle owner makes an intentional or fraudulent material

misrepresentation or omission or is acting in concert with a driver who fails to return

the motor vehicle in accordance with the sharing agreement.

The bill also requires the sharing program to ensure that each shared vehicle

owner and driver are insured under a policy that provides coverage in amounts no

less than the minimum required under Wisconsin law. That required coverage may

be provided under primary insurance maintained by the shared vehicle owner, the

shared vehicle driver, the sharing program, or any combination of those. The bill

requires that the insurer, insurers, or sharing program providing coverage must

provide primary coverage if there is a dispute about who controlled the vehicle at the

time of the loss and the program does not retain information required under the bill

or if there is a dispute about whether the vehicle was dropped off at a location

specified in the sharing agreement. Under the bill, the sharing program's insurance

must cover the loss beginning with the first dollar and has the duty to defend if the

driver's or owner's insurance has lapsed or does not provide the required coverage.

The bill gives the sharing program an insurable interest in the motor vehicle during

the period it is being shared and allows the sharing program to own and maintain

coverage specified under the bill.

The bill allows insurers writing motor vehicle insurance to exclude coverage,

including liability for bodily injury and property damage and uninsured and

underinsured motorists coverage, and to refuse to defend or indemnify for any claim

under a shared vehicle owner's policy.

The bill exempts sharing programs and shared vehicle owners from liability in

accordance with a federal law that exempts a vehicle owner who rents or leases the

vehicle from liability for harm to persons or property that results from or arises out

of the use, operation, or possession of the vehicle during the rental or lease if the

owner is engaged in the business of renting or leasing motor vehicles and there is no

negligence or criminal wrongdoing on the part of the owner. The bill also exempts