(A) No person, firm or corporation shall operate any commercial vehicle, and it shall be unlawful to do so, unless there shall have been filed with the Clerk-Treasurer, duly approved and accepted by the Mayor thereof, a good and sufficient indemnity surety or indemnity company created under the laws of the state, or duly authorized to transact business thereunder, which the bond shall describe the motor vehicle by factory number, maker’s name, rated seating capacity and number of passengers capable of being accommodated therein at 1 time, and number of state and city license under which the same is operated.
(B) When the license or either of them are changed by the issuance of a new one, it shall be indicted on a bond by the attachment of a rider thereto. The bond shall provide, among other things, that the company issuing the same shall be liable for and pay all damages including injury to person or property not exceeding $300,000 to any 1 person, or $300,000 for any 1 accident that may be recovered in any action against the person, firm or corporation so licensed to operate the commercial vehicle by reason of the negligent use and operation of the same. However, when any claim has been made or an action commenced against a person, firm or corporation operating the commercial vehicle, described in the bond, growing out of an accident by reason of the operation thereof and while operating hereunder, the person, firm or corporation shall not further operate the commercial vehicle hereunder until another bond meeting the requirements of this section shall have been filed. Or in lieu of the furnishing and filing of the bond the person, firm or corporation shall have filed with the Clerk-Treasurer a liability contract of insurance issued him or her by an insurance company organized under the laws of the state, or authorized to transact business herein, providing among other things, for the payment of any final judgment that may be rendered against the insured for damages to property or bodily injury or death to others resulting from accident or collision for which the person, firm or corporation may be liable as a common carrier while operating the commercial vehicle described therein within the provisions hereof by reason of and growing out of the negligent operation of the commercial vehicle.
(C) The bond or insurance shall be in a sum not less than $300,000 to cover liability to property or person and $300,000 to cover liability and damages for property or persons as a result of any 1 accident.
(D) The policy contract of insurance or bond shall further, among other things, provide that in the event of a final judgment being rendered or sustained against the insured, within the provisions of the company’s assumed liability, payment thereof to the insured shall not be made, without the written consent of the person recovering the same, within a period of 1 year from the date the judgment was finally rendered or sustained. Thereafter, if not paid, the person recovering judgment may be subrogated to all of the rights and subject to the conditions of the insured and may directly enforce the company's liability, if it existed, and the contract shall further provide that the stipulations and the conditions therein contained which refer to the insured’s conduct with the company and company’s conduct with the insured, in reference to accidents and claims thereunder and any rules governing the conduct of the insured or company or any branch thereof shall not be a defense in any action brought to enforce a liability under a policy or bond by any person other than the insured. It shall be the duty of every person, firm or corporation to keep the insurance or bond in force during the full period of time for which he or she may be operating thereunder, and in case the policy contract of insurance or bond is canceled the city shall be notified and the contract shall so provide by suitable provision therein, and if any bond so filed shall become inoperative or the policy of insurance canceled, the commercial vehicle shall not be operated until a bond or policy of insurance meeting the requirements of this section shall have been filed.
(Am. Ord. 9-2004, passed 5-11-2004) Penalty, see § 114.99