AB.TNC

Alberta has created a policy for ride-sharing providers like Uber. (TNC stands for Transportation Network Companies. ) The policy covers the companies and their drivers.   Forum

Pop Quiz

• What are 4 considerations regarding UBI (Usage-Based Insurance) data?
• Hint: @TASS (This is one of the harder pop-quizzes)

BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

• the concept of "use" periods and how they determine coverage

Since this is a relatively new paper, make sure to review the BattleCards as well as the old exam problems.

reference	part (a)	part (b)	part (c)	part (d)
E (2018.Fall #4)	"use" periods: - liable insurer / amount	"use" periods: - liable insurer / amount
E (2017.Fall #2)	"use" periods: - covered/(not covered)	"use" periods: - covered/(not covered)	"use" periods: - covered/(not covered)

In Plain English!

Intro

• This reading is topical. Many cities are struggling with ride-sharing. As insurers, our role is to offer coverage so that both providers and consumers of this service are protected. Albert'a s Standard Policy Form 9 (SPF9) is one example of how this is done.

• Question: What does SPF9 provide?

SPF9 provides auto insurance for Transportation Network Companies (TNCs) and their authorized TNC drivers.

Use Periods

• A use period is a unique aspect of TNC coverage. This concept arises because drivers use their personal vehicles and will have 2 separate insurance policies. The "normal" policy covers personal use, while the TNC policy is triggered when the personal vehicle is used for ride-sharing.

• Question: What are the 4 use periods? For each use period, if an accident occurs, which insurer should claims be reported to?

use period	description of use period	report claim to...	coverage
period 0	personal use: driver is not logged in to the TNC app	driver's own insurer	depends on driver's personal policy (no coverage from SPF9)
period 1	driver is logged in to the TNC app, but has not accepted a ride	driver's own insurer and TNC insurer	Third Party Liability, AccBen, no physical damage
period 2	driver has accepted a ride and is en route	TNC insurer	Third Party Liability, AccBenn, optional physical damage
period 3	passengers are in vehicle	TNC insurer	Third Party Liability, AccBenn, optional physical damage

• Note that for period 1, TNC coverage would be triggered only if the driver's own insurer denied the claim.

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Further Information

• Question: What 3 pieces of information must a TNC make available to the public and consumers?
  • a proper municipal license
  • a valid auto insurance policy (via public website or driver's smart-phone)
  • driver-specific Insurance Information Form (via driver's smart-phone)

• Question: Does SPF9 cover you while carrying street-hailed passengers or transporting cargo?
  • NO!!

• Question: If a TNC driver is involved in an accident, are the TNC, insurance company, insurance brokers required to facilitate the exchange of information between each other? Explain.
  • YES!!
  • Info they must share includes:
    • for accident: dates, times, circumstances
    • electronic info: precise times when driver was logged in and logged out of TNC app

• Insurance Information Form: This form, which must be made available to passengers, is really basic - things like name of insured, name of insurer, policy #, policy effective/expiration date, and vehicle description. I can't imagine the exam would ask you to memorize this, but you should have some idea of what it is.

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Brainstorming

• Brainstorming is always the fun part! The facts to memorize are listed above, but let's think a little more deeply about how this TNC reading fits within the syllabus
• My first thought is that this is somewhat similar to FSCO's paper on Usage-Based Insurance. UBI is another example of how technology is disrupting our insurance and transportation systems. So, a good exam question might be:

Identify two examples of technology that are disrupting the insurance and transportation marketplace.

• But that's too easy. That might be part (a) of a multi-part question. How can we build on that?

Identify and describe 1 similarity and 1 difference related to the insurance aspect of the technologies you identified in part (a)

• Similarity: Both require new technology to function. UBI requires a device installed in your car to capture driving data. Ride-sharing technology requires a smart-phone app to connect providers and customers.
• Difference: UBI is a way for insurance customers to lower their rates based on good driving habits. Ride-sharing technology requires a new type of insurance policy to cover the use of personal vehicles to carry paying customers.

• Now, with any new technology, there are dangers. For a possible part (c):

Identify and describe issues and dangers associated with the technologies you identified in part (a)

• UBI: collects personal data, so data privacy, and transparency regarding use of UBI data, are issues that must be addressed. (There are old exam questions for FSCO.UBI on this)
• Ride-sharing: must ensure that drivers have proper coverage to protect drivers and consumers (this is being addressed), but also the competitive impact to traditional taxi-drivers and taxi companies.

• Note that since the CAS has been moving away from strict memorization on exams, a favorite type of question is to compare and contrast a pair of related readings.

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The Adventures of Alice the Actuary

• Alice the Actuary is tired of studying for exams and likes to chill by using her personal vehicle for ride-sharing. Assume that she has a personal auto policy and is also covered by her TNC insurer. When she leaves her condo, she is not logged in to the TNC app. Who would provide coverage in each of the following accident situations?

1. Alice dings the car next to her while backing out of the ridiculously tight parking space in her condo's underground parking garage.
2. Alice successfully exits her parking garage, logs in to the TNC app, then waits on a side-street for notification of a fare. A skater-boarder with orange hair and an eyebrow piercing wipes out, and his flying skateboard dents her fender.
3. Alice receives a fare, then pulls out into traffic. She didn't see the bicyclist, and he accidentally damages her mirror with the handlebars of his bike.
4. Alice picks up an obviously inebriated couple. They are in the back seat and while she's stopped behind another car at a traffic light, they suddenly yell "Woo-hoo!!" Alice is startled and her foot jumps off the brake. She bumps the car in front of her, and one of the drunk passengers breaks his nose when he is thrust into the Alice's headrest from behind.

• Answers: The key here is to recognize the various use periods and to know which insurer is liable in each case.
  1. She is not logged in to the app (use period 0) so her own insurer would provide coverage, if appropriate.
  2. She is logged in but has not picked up a fare (use period 1). It isn't clear who would provide coverage. She would notify her own insurer first, but if they refused to provide coverage, she would notify the TNC insurer. (But she would discover that SPF9 doesn't provide physical damage in period 1, so she's out of luck!)
  3. She is enroute to a fare (use period 2) so the TNC insurer would provide coverage (if the optional physical damage coverage was purchased.)
  4. The passengers are in her car (use period 3) so the TNC insurer would provide coverage.

• Post-script: Alice decides that ride-sharing isn't so chill after all, and goes back to spending her nights and weekends studying.

BattleCodes

• Memorize:
  • purpose of Alberta SPF9 (Standard Policy Form 9)
  • defns of use periods and applicable insurance provider
  • 3 pieces of insurance-related information a TNC must make available to providers and customers
  • 5 items of post-accident information whose exchange must be facilitated between the TNC, insurance providers & brokers
  • purpose and basic layout of the Insurance Information Form

• conceptual:
  • similarities and differences between ride-sharing and UBI
  • how to identify which insurance provider should be contacted after an accident (based on use periods)

• Calculational:
  • none

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  Forum

POP QUIZ ANSWERS

• 4 considerations regarding UBI data: @TASS
• @T: (@ Termination) ensure that no further data is (captured, transferred, analyzed) after (UBIP, policy) termination
• A: (accuracy) ensure (compliance with UBIP discount, data errors fixed, customer disputes resolved, customer hasn't tampered w/data)
• S: (security) ensure data (capture, transfer, analysis) done in secure environment
• S: (storage) ensure that data is (deleted, anonymized) when there is no longer a clear business need (Exs: opt-out, doesn't renew, data not relevant for disc)