Michigan Laws 257.2125 – Terms of service; disclosure by transportation network company to prospective driver
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Terms Used In Michigan Laws 257.2125
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Transportation network company: means a person operating in this state that uses a digital network to connect transportation network company riders to transportation network company drivers who provide transportation network company prearranged rides. See Michigan Laws 257.2102
- Transportation network company driver: means an individual who satisfies all of the following:
(i) Receives connections to potential passengers and related services from a transportation network company in exchange for payment of a fee to the transportation network company. See Michigan Laws 257.2102Transportation network company prearranged ride: means the provision of transportation by a transportation network company driver to a transportation network company rider, beginning when a transportation network company driver accepts a ride requested by a transportation network company rider through a digital network controlled by a transportation network company, continuing while the transportation network company driver transports the requesting transportation network company rider, and ending when the last requesting transportation network company rider departs from the personal vehicle. See Michigan Laws 257.2102
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.”.