(a) An operating authority shall procure and keep in full force and effect no less than the insurance coverage required by this article through a policy or policies written by an insurance company that:
(1) is 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;
(2) is acceptable to the city; and
(3) does not violate the ownership or operational control prohibitions described in Subsection (e) of this section.
(b) The insured provisions of the policy must name the city and its officers and employees as additional insureds, and the coverage provisions must provide coverage for any loss or damage that may arise to any person or property by reason of the operation of a transportation-for-hire vehicle when driven by any authorized driver.
(c) Insurance required under this article must:
(1) include a cancellation provision in which the insurance company is required to notify the director in writing not fewer than 30 days before cancelling the insurance policy (for a reason other than non-payment) or before making a reduction in coverage;
(2) include a cancellation provision in which the insurance company is required to notify the director in writing not fewer than 10 days before cancelling for non-payment;
(3) cover all transportation-for-hire vehicles during all times that the vehicles are operating in furtherance of the operating authority's business, whether the vehicles are owned, non-owned, hired, rented, or leased by the operating authority, and whether the vehicles are or are not listed on a schedule of vehicles provided to the insurance company;
(4) include a provision requiring the insurance company to pay every covered claim on a first-dollar basis;
(5) require notice to the city of Dallas if the policy is cancelled or if there is a reduction in coverage; and
(6) comply with all applicable federal, state, or local laws.
(d) A driver must keep proof of any and all liability insurance policies applicable to the driver or vehicle in the vehicle while the driver is providing transportation-for-hire services.
(e) No person who has a 20 percent or greater ownership interest in the operating authority may have any interest in the insurance company.
(f) The operating authority may not be self-insured.
(g) Any insurance policy required by this article must be on file with the city within forty-five (45) days of the issuance of the initial operating authority permit, and thereafter within 45 days of the expiration or termination of a previously issued policy. (Ord. Nos. 29596; 30180)