(a) Before an escort license is issued to the owner or operator of a private motor vehicle escort agency, or before the renewal of an escort license is granted, the applicant shall file with the city secretary a standard policy of public liability and property damage insurance, to be executed by an insurance company authorized to do business in the state and performable in the county, which is approved by the city manager, insuring the general public against loss or damage that may result to any person or property from the operation of the motor vehicle escort service.
(b) The insurance policy shall insure each vehicle operated by the motor vehicle escort agency and shall have limits of not less than $100,000 for injury to one person, $300,000 for injuries to two or more persons resulting from one accident, and $50,000 for damage to property resulting from one accident. The insurance shall be for the protection of passengers riding in a funeral cortege being escorted and for protection of the public, but not for personal injuries sustained by the servants, agents or employees of the motor vehicle escort agency. The policy of insurance shall be for a period of one year and the date of the policy shall coincide with the date of the license issued under this article and shall contain a provision for a continuing liability up to the full amount, notwithstanding any recovery thereon.
(c) If the chief of police determines after a hearing, that a licensee’s policy of insurance provides less protection to the public than when originally filed, he shall require a new or an additional policy to bring the protection of the insurance to its original amount, and the licensee shall, within 10 days after receiving written notice of this requirement, provide the required new or additional policy. The license of a licensee shall be revoked by the chief of police upon the licensee’s failure to provide the required policy.
(d) If an insurer desires to be released from a policy required by this section, he may give written notice to the chief of police by filing the notice with the city secretary at least 30 days before liability is to be released, and the chief of police shall authorize the city secretary by personal delivery, or by mail, to give written notice to the licensee with the demand that the licensee shall furnish new insurance by the expiration of a 10 day period.
(e) If a policy is cancelled upon the request of the insurer and no new policy is filed by the licensee before the cancellation of the original insurance, then the license to operate a motor vehicle escort service issued to the licensee shall be revoked. (Ord. 14584)