§ 46-549. Insurance.

(a)

Notwithstanding any other provision of this article to the contrary, no permit shall become effective nor shall wheelchair accessible service be provided until the permittee has filed with the director the requisite proof of insurance insuring the general public against any loss or damage that may result to any person or property from the operation of a wheelchair accessible vehicle used as a vehicle for hire covered by the permit.

(b)

The insurance required in subsection (a) shall be in a form of automobile liability coverage with limits of not less than $1,000,000.00 combined single limit per accident issued by either a company listed as an authorized auto liability lines carrier on the Texas Department of Insurance's List of Authorized Insurance Companies or a surplus lines insurer listed on the Texas Department of Insurance's List of Eligible Surplus Lines Insurance Companies. The eligible surplus lines insurance company is required to have a Best's Rating of at least B+ and a Best's Financial Size Category of Class VI or better according to the most current edition of Best's Key Rating Guide, Property-Casualty, United States.

(c)

The insurance shall be for the protection of the passengers of wheelchair accessible vehicle used as a vehicle for hire as well as for the general public. The required insurance shall name the city as an additional insured. The policies issued under this section shall contain a provision for a continuing liability thereon up to the full amount thereof, notwithstanding any recovery thereon, and a provision requiring that 30 days written notice shall be given the city before cancellation of the policy is effective.

(d)

If any insurer desires to be released from any insurance policy filed under this section, he may do so by giving written notice to the director at least 30 days before he desires to be released from liability. The director shall thereupon give written notice to the permittee and demand that the permittee furnish evidence of new insurance obtained before the expiration of the policy.

(e)

If any policy is cancelled as herein provided, or expires and no new policy is filed by the permittee before the cancellation or expiration of the original insurance, the permit shall automatically be suspended, and the permittee shall discontinue the operation of the affected vehicles within the city. If a proper replacement policy is not provided to the director on or before the tenth business day after the date of termination or cancellation of the policy, the license shall automatically terminate.

(f)

Proof of coverage shall be accepted only in the authorized form approved by the Texas Department of Insurance for that purpose.

(Ord. No. 2015-998, § 6(Exh. A), 10-14-2015)