An agreement between leading U.S. insurance providers and Transportation Network Companies, like Uber and Lyft would clarify how much ride-share services must insure drivers…anytime they are working.

Ride-share companies have been criticized for gaps in their insurance coverage and cab drivers and local governments have sought regulations that would put companies like Uber and Lyft on a more level playing field with taxi companies.

The so-called TNC Insurance Compromise Model Bill resembles a California law taking effect in July. Uber and Lyft had opposed that legislation, but eventually reached a compromise.

In a letter to legislators, participating insurers and trade groups said the Bill strikes a balance between support for innovative transportation and a strong regulatory framework that protects consumers and ensures proper auto insurance coverage.

The agreement, which will be sent to state legislators across the country, does not specify who would pay for insurance coverage, and encourages insurers to develop new products for ride-hail drivers.

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