(A) A company shall maintain and by its acceptance of a franchise specifically agrees that it will maintain, throughout the term of its franchise, liability insurance insuring the Town and the company in the minimum amount of:
(1) One million dollars for property damage due to any one person;
(2) One million dollars for property damage due to any one accident;
(3) One million dollars for personal injury due to any one person; and
(4) One million dollars for personal injury due to any one accident.
(B) In order to comply with this section, the insurance policy must be obtained by a company from an insurance company licensed to do business in Tennessee and rated not less than AA by Best or a comparable insurance rating service. Certificates of insurance along with written evidence of payment of required premiums shall be filed and maintained with the Town during the term of a franchise and may be changed from time to time to reflect changing liability limits. The company shall immediately advise the Town of any litigation that may develop that would affect this insurance.
(C) Nothing contained herein or in any franchise document shall limit the liability of a company to the Town.
(D) All insurance policies maintained pursuant to a franchise shall contain the following endorsement: “It is hereby understood and agreed that this insurance policy may not be canceled or not renewed until 30 days after receipt by the Town, by certified mail, of a written notice of such intention to cancel or not to renew.”
(`83 Code, § 13-515)