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MCUA Supports Bill to Clarify Insurance Coverage for TNC's

The Missouri Credit Union Association (MCUA) testified in support of a bill that will help protect lienholders of vehicles being used by drivers who partner with a transportation network company (TNC) - such as Uber or Lyft.  HB 781, sponsored by Rep. Don Gosen (R-District 101), requires drivers to be insured by TNC insurance at all times - either provided by the driver or by the TNC's policy.

"Currently, there is an insurance coverage gap for TNC drivers and this has drastic implications for both the driver and the lienholder," says David Kent, director of state legislative affairs for MCUA, who testified on the bill.  "A TNC's insurance coverage only applies when a passenger is inside the vehicle.  If the driver causes an accident while on the way to pick up a passenger, however, the TNC's coverage may not apply.  And without commercial insurance, it's likely the driver would bear the entire financial loss, including any balance remaining on the loan for the vehicle.  This bill makes sure the driver is covered at all times."

The bill also stipulates TNC drivers must notify the lienholder that the vehicle is being used for transportation services.

The bill was heard in the House Property, Casualty, and Life Insurance Committee on March 2.  The committee is expected to vote on the bill March 9.

(Photo:  Rep. Don Gosen)

Committee Hears Bill to Allow Certain Auto-Dealers 60 Days to Deliver Title

A bill that will allow certain auto-dealers - those that have secured a surety bond not less than $100,000 - up to 60 days to deliver title to the buyer was heard in the Senate Commerce, Energy and the Environment Committee on March 4.  SB 456 is sponsored by Senator Mike Kehoe (R-District 6).

MCUA worked with the bill sponsor and other groups to share credit union concerns and provide information on the legislation prior to it being filed.  Below is a  brief overview of the bill:

  • Dealer is liable if the lienholder and/or the buyer is damaged;
  • Stipulates a process for buyer to receive the title, even if the dealer is not able to provide it within the agreed timeframe;
  • Buyer must provide proof of comprehensive and collision coverage on the vehicle;
  • The ‘written agreement’ serves as ‘proof of ownership’ for all purposes other than a subsequent transfer of ownership;
  • The Department of Revenue may refuse to issue or renew a dealer's license for repeated violations under this new law.

(Photo:  Senator Mike Kehoe)

Bills You Want to Know About

Click here for an overview of the bills with potential impact to credit unions.  MCUA provides information each week, with regular updates as more bills are introduced and tracked.

Overview of the Week - March 2 - 5

Activities this week were abbreviated due to the funeral of State Auditor Tom Schweich. Upon returning from the funeral, the House and Senate both convened on Tuesday afternoon. Hearings continued on Wednesday morning and both chambers spent some time perfecting bills on Tuesday and Wednesday. 

The Select Budget Committee finished its work in committee on the state’s operating budget and forwarded the bills to the Rules Committee.  The Rules Committee voted the bills out and the bills will now be placed on the Perfection Calendar.  It’s anticipated the House will take up the budget bills this week. 

The Senate cut-off date for filing of new bills was on February 28.  New bills continue to be filed in the House.

For more information on any of the above, please contact Amy McLard or David Kent.