Autonomous Vehicles

This Act defines autonomous technology and autonomous vehicle and provides legislative intent regarding vehicles with autonomous technology. It authorizes the operation of autonomous vehicles and provides requirements for autonomous vehicles, including liability for autonomous vehicles. The legislation also requires the department of highway safety and motor vehicles to submit a report to the President of the Senate and the Speaker of the House of Representatives recommending additional legislative or regulatory action that may be required for the safe testing and operation of motor vehicles equipped with autonomous technology.

Submitted as: Florida CS/HB 1207 (Enrolled version) Status: Enacted into law in 2012.

Suggested State Legislation

(Title, enacting clause, etc.)

Section 1. [Short Title.] This Act shall be cited as “The Autonomous Vehicles Act.”

Section 2. [Legislative Intent.] It is the intent of the [legislature] to encourage the safe development, testing, and operation of motor vehicles with autonomous technology on the public roads of the state. The [legislature] finds that the state does not prohibit or specifically regulate the testing or operation of autonomous technology in motor vehicles on public roads.

Section 3. [Definitions.] As used in this Act: (1) “Autonomous technology” means technology installed on a motor vehicle that has the capability to drive the vehicle on which the technology is installed without the active control or monitoring by a human operator. The term excludes a motor vehicle enabled with active safety systems or driver assistance systems, including, without limitation, a system to provide electronic blind spot assistance, crash avoidance, emergency braking, parking assistance, adaptive cruise control, lane keep assistance, lane departure warning, or traffic jam and queuing assistant, unless any such system alone or in combination with other systems enables the vehicle on which the technology is installed to drive without the active control or monitoring by a human operator. (2) “Autonomous vehicle” means any vehicle equipped with autonomous technology.

Section 4. [Autonomous Vehicles.] (A) An autonomous vehicle registered in this state must continue to meet federal standards and regulations for a motor vehicle. (B) The vehicle shall: (1) Have a means to engage and disengage the autonomous technology which is easily accessible to the operator. (2) Have a means, inside the vehicle, to visually indicate when the vehicle is operating in autonomous mode.

27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 (3) Have a means to alert the operator of the vehicle if a technology failure affecting the ability of the vehicle to safely operate autonomously is detected while the vehicle is operating autonomously in order to indicate to the operator to take control of the vehicle. (4) Be capable of being operated in compliance with the applicable traffic and motor vehicle laws of this state. (C) Federal regulations promulgated by the National Highway Traffic Safety Administration shall supersede this section when found to be in conflict with this section.

Section 5. [Operating Autonomous Vehicles.] (A) A person who possesses a valid driver license may operate an autonomous vehicle in autonomous mode. (B) A person shall be deemed to be the operator of an autonomous vehicle operating in autonomous mode when the person causes the vehicle’s autonomous technology to engage, regardless of whether the person is physically present in the vehicle while the vehicle is operating in autonomous mode. (C) Vehicles equipped with autonomous technology may be operated on roads in this state by employees, contractors, or other people designated by manufacturers of autonomous technology for the purpose of testing the technology. For testing purposes, a human operator shall be present in the autonomous vehicle and they shall have the ability to monitor the vehicle’s performance and intervene, if necessary, unless the vehicle is being tested or demonstrated on a closed course. Prior to the start of testing in this state, the entity performing the testing must submit to the [department of highway safety and motor vehicles] an instrument of insurance, surety bond, or proof of selfinsurance acceptable to the [department] in the amount of [$5 million]. (D) The original manufacturer of a vehicle converted by a third party into an autonomous vehicle shall not be liable in, and shall have a defense to and be dismissed from, any legal action brought against the original manufacturer by any person injured due to an alleged vehicle defect caused by the conversion of the vehicle, or by equipment installed by the converter, unless the alleged defect was present in the vehicle as originally manufactured. (E) By [insert date] the [department of highway safety and motor vehicles] shall submit a report to the [President of the Senate and the Speaker of the House of Representatives] recommending additional legislative or regulatory action that may be required for the safe testing and operation of motor vehicles equipped with autonomous technology.

Section 6. [Severability.] [Insert severability clause.]

Section 7. [Repealer.] [Insert repealer clause.]

Section 8. [Effective Date.] [Insert effective date.]

Beneficiaries’ Bill of Rights

This Act defines a “Retained Asset Account” as “any mechanism whereby the settlement of proceeds payable under a life insurance policy, including but not limited to the payment of cash surrender value, is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account where those proceeds are retained by the insurer, pursuant to a supplementary contract not involving annuity benefits.” The legislation precludes insurers from using a retained asset account as the mode of settlement of payment to a life insurance beneficiary unless the insurer discloses the use of a retained asset account to the beneficiary or the beneficiary's legal representative prior to the transfer of life insurance proceeds to a retained asset account. The Act requires insurers to inform a beneficiary about the right to receive a lump-sum payment of life insurance proceeds in the form of a bank check or similar other immediate full payment of benefits. It requires insurers to disclose all payment options available to beneficiaries, in written or electronic format, upon the distribution of anything other than a lump-sum payment of life insurance proceeds. The bill sets forth specific disclosure requirements upon the use of a retained asset account rather than a lump-sum payment. It establishes annual insurer reporting requirements to the department of insurance about retained asset accounts. The legislation requires all marketing materials, disclosure statements, and supplemental contract forms used in connection with retained asset accounts to be filed with the department of insurance prior to their use. The Act authorizes the commissioner to disapprove any materials, statements, or forms that are inconsistent with the provisions of the section or are otherwise untrue, unfair, deceptive, false, or misleading. The legislation requires insurers to return any balance held in a retained asset account to the beneficiary if no funds are withdrawn from the account, or if no affirmative directive has been provided to the insurer by the beneficiary, during any continuous three-year period.

Submitted as: Kentucky HB 309 Status: Enacted into law in 2011.

Suggested State Legislation

(Title, enacting clause, etc.)

Section 1. [Short Title.] This Act shall be cited as “The Beneficiaries’ Bill of Rights Act.”

Section 2. [Definitions.] (1) As used in this section, “retained asset account” means any mechanism whereby the settlement of proceeds payable under a life insurance policy, including but not limited to the payment of cash surrender value, is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account where those proceeds are retained by the insurer, pursuant to a supplementary contract not involving annuity benefits. (2) (a) An insurer may not use a retained asset account as the mode of settlement unless the insurer discloses the use of a retained asset account to the beneficiary or the beneficiary’s legal representative prior to the transfer of life insurance proceeds to a retained asset account.

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 (b) A beneficiary shall be informed, prior to the distribution of any life insurance proceeds, of his or her right to receive a lump-sum payment of life insurance proceeds in the form of a bank check or other form of immediate full payment of benefits. (3) (a) A complete listing and clear explanation of all life insurance proceeds payment options available to the beneficiary shall accompany, in written or electronic format, the use of a retained asset account. The complete listing and clear explanation of life insurance proceeds payment options shall accompany the disclosure required by subsection (2)(b) of this section. (b) Pursuant to paragraph (a) of this subsection, the use of a retained asset account shall require the following to be included in the complete listing and clear explanation disclosure: 1. The recommendation to consult a tax, investment, or other financial advisor regarding tax liability and investment options; 2. The initial interest rate, the circumstances and time frames under which interest rates may change, and any dividends and other gains that may be paid or distributed to the account holder; 3. The custodian of the funds or assets of the account; 4. The coverage guaranteed by the Federal Deposit Insurance Corporation (FDIC), if any, and the amount of the coverage; 5. The limitations, if any, on the number or amount of withdrawals or transfers of funds from the account, including any minimum or maximum withdrawal amounts for payment of life insurance proceeds; 6. The delays, if any, that the account holder may encounter in completing authorized transactions and the anticipated duration of such delays; 7. The services provided for a fee, including a list of the fees and the method of their calculation; 8. The nature and frequency of statements of account; 9. The payment of some or all of the life insurance proceeds may be by the delivery of checks, drafts, or other instruments to access the available funds; 10. The entire life insurance proceeds are available to the account holder by the use of [one (1)] check, draft, or other instrument; 11. The insurer or a related party may derive income, in addition to any fees charged on the account, from the total gains received on the investment of the balance of funds in the account; 12. The telephone number, address, and other contact information, including a Web site address, to obtain additional information regarding the account; and 13. The following statement, “FOR FURTHER INFORMATION, PLEASE CONTACT YOUR STATE DEPARTMENT OF INSURANCE.” (c) The writings produced to satisfy the requirements of this subsection shall be written in plain language and printed in bold in no smaller than a [twelve (12) point] font. (4) (a) Insurers shall, on at least an annual basis, report the following information to the [department of insurance]: 1. The number and dollar amount of retained asset accounts: a. In force at the beginning of the year; b. Issued or added during the year; c. Closed or withdrawn during the year; d. In force at the end of the year; and e. That are transferred annually pursuant to [insert citation]; 2. The dollar amount of investment earnings or interest credited to retained asset accounts during the year; 3. The dollar amount of fees and other charges assessed during the year;

4. A narrative description of how the retained asset accounts are structured. The description shall include: a. All of the interest rates paid to retained asset account holders during the reporting year, as well as the number of times changes were made to interest rates during the reporting year; b. A list of all applicable fees charged by the reporting entity directly or indirectly associated with the retained asset accounts; and c. Whether the retained asset accounts were the default method for satisfying life insurance claims; 5. The number and dollar amount of retained asset accounts in force at the end of the current year as compared to the prior year segregated by the following ages of the outstanding retained asset accounts: a. [Zero (0) to twelve (12) months]; b. [Thirteen (13) to twenty-four (24) months]; c. [Twenty-five (25) to thirty-six (36) months]; d. [Thirty-seven (37) to forty-eight (48) months]; e. [Forty-nine (49) to sixty (60) months]; and f. [Greater than sixty (60) months]; 6. The identity of any entity or financial institution that administers retained asset accounts on behalf of the insurer; and 7. Any other information relating to retained asset accounts as requested or required by the [commissioner of the department of insurance]. (b) All marketing materials, disclosure statements, and supplemental contract forms utilized in connection with retained asset accounts shall be filed with the [department of insurance] prior to their use. The [commissioner] shall disapprove any materials, statements, or forms submitted under this section that are inconsistent with subsection (3) of this section or are otherwise untrue, unfair, deceptive, false, or misleading. (5) An insurer shall immediately return any remaining balance held in a retained asset account to the beneficiary when the account becomes inactive. A retained asset account shall become inactive for purposes of this subsection if no funds are withdrawn from the account, or if no affirmative directive has been provided to the insurer by the beneficiary, during any continuous [three (3) year] period. (6) The [commissioner] may promulgate administrative regulations implementing this section.

Section 3. [Severability.] [Insert severability clause.]

Section 4. [Repealer.] [Insert repealer clause.]

Section 5. [Effective Date.] [Insert effective date.]