A peer-to-peer car sharing program must provide specified liability insurance and assume certain liability during the car sharing period, subject to listed exceptions.
(a) Except as provided in subsection (b), a peer-to-peer car sharing program shall assume liability of a shared vehicle owner for bodily injury or property damage to third parties during the car sharing period in an amount stated in the peer-to-peer car sharing program agreement. The amount shall not be less than the proof of financial responsibility required under Chapter 7 of Title 32. (b) Notwithstanding the definition of “car sharing termination time,” the assumption of liability under subsection (a) does not apply to any shared vehicle owner under either of the following circumstances: (1) When a shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the peer-to-peer car sharing program before the car sharing period in which the loss occurred. (2) When a shared vehicle owner acts in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the terms of the peer-to-peer car sharing program agreement. (c) Notwithstanding the definition of “car sharing termination time,” the assumption of liability under subsection (a) applies to bodily injury or property damage to third parties as required under Chapter 7 of Title 32. (d) A peer-to-peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that does all of the following: (1) Provides insurance coverage in amounts no less than the minimum amounts required for proof of financial responsibility described under Section 32-7-2. (2) Does either of the following: a. Recognizes that the shared vehicle insured under the policy is made available and used through a peer-to-peer car sharing program. b. Does not exclude the use of a shared vehicle by a shared vehicle driver. (e) The insurance required under subsection (d) may be purchased by any of the following: (1) A shared vehicle owner. (2) A shared vehicle driver. (3) A peer-to-peer car sharing program. (4) Any combination of a shared vehicle owner, a shared vehicle driver, or a peer-to-peer car sharing program. (f) The insurance described in subsection (e), which is satisfying the requirement of subsection (d), shall be primary during each car sharing period. If a claim occurs in another state with minimum financial responsibility limits higher than those described in Section 32-7-2, during the car sharing period, the insurance maintained under subsection (e) shall satisfy the difference in minimum coverage amounts, up to the applicable policy limits. (g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under subsection (d) or (e) shall assume primary liability for a claim when either of the following occurs: (1) A dispute exists as to who was in control of the shared vehicle at the time of the loss and the peer-to-peer car sharing program does not have available, did not retain, or fails to provide the information required by Section 32-15A-6. (2) A dispute exists as to whether the shared vehicle was returned to the alternatively agreed upon location as required under Section 32-15A-2(4)b. (h) If insurance purchased by a shared vehicle owner or shared vehicle driver pursuant to subsection (e) has lapsed or does not provide the required coverage, insurance maintained by a peer-to-peer car sharing program shall provide the coverage required by subsection (d) beginning with the first dollar of a claim and shall have the duty to defend the claim except under circumstances as set forth in subsection (b). (i) Coverage under an automobile insurance policy maintained by the peer-to-peer car sharing program may not be dependent on another automobile insurer first denying a claim and may not require another automobile insurance policy to first deny a claim. (j) Nothing in this section does either of the following: (1) Limits the liability of a peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program which results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer car sharing program. (2) Limits the ability of the peer-to-peer car sharing program to seek indemnification, by contract, from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement.