Department:

City of Seattle

Department of Finance and Administrative Services Rule No:

FOR-HIRE TRANSPORTATION 06-2021 Supersedes:

Clerk File 319803

Publication:

8/20/2021

Effective:

11/22/2021

Subject:

Temporary Changes to Insurance Requirements for Taxicabs and For-Hire Vehicles Code and Section Reference(s):

SMC 6.310.140 and SMC 6.310.300.C.5 and SMC 6.310.300.C.6

Approved:

Division Director

Business Unit Officer

Calvin W. Goings, Department Director

Date

Date

Date

King County / Department of Executive Services

Document Code No.: LIC-8-6-PR

Repeals: New

Title: Temporary Changes to Insurance Requirements for Taxicabs and For-Hire Vehicles

Effective Date: November 22, 2021

Authorities: KCC 6.64.021 and KCC 6.64.350

Keywords: Insurance, taxi, taxicab, for-hire vehicle

Sponsoring Agency: Records and Licensing Services Division (RALS)

Department Director signature:________________________________________________________

Date signed: ________________________________________________________________________

City of Seattle and King County For-Hire Transportation Rules

________________________________________

City of Seattle Director's Rule FOR-HIRE TRANSPORTATION 06-2021 and King County Public Rule LIC-8-6-PR Temporary Changes to Insurance Requirements for Taxicabs and For-Hire Vehicles

Pursuant to an interlocal agreement, the City of Seattle and King County work cooperatively to regulate for-hire passenger transportation. The following Rule supersedes City of Seattle Clerk File 319803. King County adopts this Rule as new.

I. Purpose. The City and the County have established insurance requirements for taxicabs and for-hire vehicles. As permitted by SMC 6.310.300.C.5.a and KCC 6.64.350.A.1, this Rule amends those requirements because taxicabs and for-hire vehicles lack viable insurance options. The requirements of this Rule are temporary and will be reassessed as insurance conditions change. This Rule does not change the insurance requirements for transportation network company vehicles.

Two primary insurance companies currently serve taxicabs and for-hire vehicles operating in the greater Seattle area. The City and County estimate the average cost of coverage at $500 per month. Typically, insurance represents one of the most expensive operating costs incurred by taxicab and for-hire vehicle owners. As taxicabs and for-hire vehicles resume operations following the coronavirus pandemic, the City and County intend to adjust the requirements to allow viable opportunities for insurance coverage.

II. Definitions. This term has the following meaning when used in this Rule:

A. "Director" means the director of King County's Department of Executive Services and/or the City of Seattle's Director of Finance and Administrative Services, or their designees.

III. Requirements. The insurance policy requirements in King County Code (KCC) 6.64.350.A and in Seattle Municipal Code (SMC) 6.310.300.C.5 are listed below. The column on the right notes whether they are temporarily amended or remain unchanged:

King County Code 6.64.350.A Seattle Municipal Code 6.310.300.C Temporary Changes to Insurance Requirements Enacted by this Rule

(2) The policy shall be issued by an admitted carrier in the state of Washington, with an A.M. Best Rating of not less than B VII. (5.a) Be issued by an admitted carrier in the State of Washington with an A.M. Best's Rating of not less than B and be not less than A.M. Best's Financial Size Category VII. Changes A.M. Best Rating for an admitted carrier in the state of Washington from B to B- (A.M. Best Financial Size Category VII).

Allows for surplus lines from an insurer with an A.M. Best Rating of not less than B (A.M. Best Financial Size Category VII).

(3) King County, its officers, officials, agents and employees shall be named as an additional insured on the insurance policy. (5.b) Name The City of Seattle as an additional insured. No change

(1) The policy shall also provide that the insurer notify the Director of any cancellation in writing at least thirty days before cancellation of the policy. (5.c) Provide that the insurer will notify the Director, in writing, of any cancellation at least 30 days before that cancellation takes effect. Changes the cancellation notification period from no less than thirty (30) days for any reason to no less than ten (10) days for nonpayment, and to no less than thirty (30) days for any other reason.

(4) The policy shall not include aggregate limits or named driver requirements or exclusions. Other limitations or restrictions beyond standard business insurance services office business auto policy form are subject to approval by the director. (5.d) Not include aggregate limits, or named driver requirements or exclusions. Other limitations or restrictions beyond standard insurance services office (ISO) business auto policy form are subject to approval by the Director. Removes the prohibition on named driver exclusions. Any person listed as an excluded driver is prohibited from driving the vehicle covered by that policy.

Other limitations or restrictions beyond standard insurance services office (ISO) business auto policy form are subject to approval by the Director.

(5) All applicants shall maintain a policy of underinsured motorist coverage which runs to the benefit of passengers. The policy declarations or a certificate of insurance shall indicate a minimum coverage of one hundred thousand dollars per person and three hundred thousand dollars per accident.

(6) Include a certificate of underinsured motorist coverage indicating a minimum coverage of $100,000 per person, and $300,000 per accident. No change

IV. Implementation. These requirements take effect thirty (30) days after the Director files this Rule with the Seattle City Clerk and with the King County Archives, Records Management, and Mail Services Section (ARMMS).

V. Rule Maintenance. The Director will periodically consult with industry stakeholders, including vehicle owners and insurance company representatives, on the availability and cost of insurance coverage to determine whether this Rule needs revision.

VI. Rule Enforcement. The Director will review insurance documentation submitted by vehicle owners to ensure compliance with the requirements outlined herein.