(A) An MCS provider may be required to secure and maintain, for as long as it provides multi-channel service to subscribers, public liability, property damage insurance, and umbrella coverage in at least the following amounts:
(1) Public liability: $2,000,000 per person/per occurrence;
(2) Property damage: $2,000,000 per any one claim;
(3) Umbrella liability: $4,000,000 with up to a $50,000 deductible and/or base insurance.
(B) Note well, however, that insurance requirements should be consistent for MCS providers who offer multi-channel service to more than 10% of the residents within the city. Consequently, the Council/franchising authority may not impose more restrictive or burdensome insurance requirements on any other MCS providers who meet the above service thresholds, except as provided in division (E) below.
(C) An MCS provider's public and personal liability and property damage insurance policy shall specifically include the city, the Mayor, and the Council/franchising authority as additional insureds.
(D) The public and personal liability and property damage insurance policy shall be issued by an agent or representative of an insurance company licensed to do business in the state, and which has one of the three highest or best ratings from the Alfred M. Best Company.
(E) Should the Council/franchising authority make a formal determination that due to the financial, operational, technical, or legal status (or lack thereof) or condition of the MCS provider, the above-referenced requirements for minimal insurance are inadequate, then the Council/franchising authority may require the MCS provider to obtain and maintain insurance for greater minimal amounts, up to but not exceeding $5,000,000 for public liability, $5,000,000 for property damage, and $10,000,000 for umbrella liability.
(F) The public liability and property damage insurance policy shall contain an endorsement obligating the insurance company to furnish the Council/franchising authority with at least 30 days written notice in advance of the cancellation of the insurance.
(G) Renewal or replacement policies or certificates shall be delivered to the Council/franchising authority at least 10 days before the expiration of the insurance which such policies are to renew or replace.
(H) Before a multi-channel system provides multi-channel service to subscribers, the MCS provider shall deliver the policies or certificates representing the insurance to the Council/franchising authority, and each policy or certificate delivered shall be accompanied by evidence of payment of the premium thereon.
(I) If the state permits an MCS provider to self-insure, then the MCS provider may exercise its right to self-insure, so long as the minimal amounts of insurance coverage outlined in this section are met and maintained for the entire period of that the affected MCS provider is self-insured. However, for the reasons listed in division (E) of this section, the Council/franchising authority may make a formal determination and require an increase in the minimal amounts of insurance coverage.
(Ord. 4-1994-20, passed 4-12-94)