The Mississippi Insurance Department this month added a new duty to their workload: overseeing ride-sharing companies.
Governor Phil Bryant signed into law last week House Bill 1381, which gives the department and state commissioner charge over companies like Uber and Lyft and requires each to pay a $5,000 license fee to the department.
The bill also requires the driver or the ride-share company to have insurance covering the transportation of passengers. When passengers are in the car, the driver must be insured for up to $1 million.
Companies must also conduct criminal background checks on potential drivers, and display a driver’s picture and license plate number online before a passenger is picked up.
The move is unusual as states begin to exert regulatory control over Uber and other ride-sharing platforms. Typically, cities oversee such services rather than insurance departments.
The law takes effect July 1, making Mississippi the 30th state to pass legislation creating regulatory framework for ride-sharing companies.
