(a) Licensee. In the operation of a vehicle immobilization service, a licensee shall comply with the terms and conditions of the vehicle immobilization service license and, except to the extent expressly provided otherwise by the license, shall comply with this chapter, rules and regulations established under this chapter, and other law applicable to the operation of a vehicle immobilization service.
(b) Operator. While on duty, a vehicle immobilization operator shall comply with this chapter, regulations established under this chapter, and orders issued by the licensee employing the vehicle immobilization operator in connection with the licensee’s discharging of its duty under its vehicle immobilization service license and this chapter. (Ord. 27629)
(a) A licensee shall establish policy and take action to discourage, prevent, or correct violations of this chapter by vehicle immobilization operators who are employed by the licensee.
(b) A licensee shall not permit a vehicle immobilization operator who is employed by the licensee to immobilize a vehicle if the licensee knows or has reasonable cause to suspect that the operator has failed to comply with this chapter, the rules and regulations established by the director, or other applicable law. (Ord. 27629)
(a) A licensee shall procure and keep in full force and effect commercial general liability and business automobile liability insurance written by an insurance company that:
(1) is approved, licensed, or authorized by the State of Texas;
(2) is acceptable to the city; and
(3) does not violate the ownership/ operational control prohibition described in Subsection (i) of this section.
(b) The insurance must be issued in the standard form approved by the Texas Department of Insurance, and all provisions of the policy must be acceptable to the city. The insured provisions of the policy must name the city and its officers and employees as additional insureds. 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 vehicle immobilization service by the licensee, including but not limited to damage to an immobilized vehicle caused directly or indirectly by improper installation or removal of a boot.
(c) The commercial general liability insurance must be on a broad form and must provide coverage for, but is not limited to, premises/operations and personal and advertising injury with minimum combined bodily injury (including death) and property damage limits of not less than $500,000 per occurrence and a general aggregate limit of not less than $1,000,000 for all occurrences for each policy year.
(d) The business automobile liability insurance must provide a combined single limit of liability for bodily injury (including death) and property damage of not less than $500,000 for each occurrence for each vehicle owned, hired, or otherwise used in the vehicle immobilization service by the licensee or the licensee’s employees.
(e) Insurance required by this section may be obtained from an assigned risk pool if:
(1) all of the policies and coverages are managed by one agent; and
(2) one certificate of insurance is issued to the city.
(f) The insurance required under this section must include:
(1) a cancellation provision in which the insurance company is required to notify the director in writing not fewer than 30 days before canceling, failing to renew, or making a material change to the insurance policy;
(2) a provision to cover all boots and other immobilization equipment, whether owned or not owned by the licensee, that are operated under the license; and
(3) a provision requiring the insurance company to pay every claim on a first-dollar basis.
(g) A license will not be granted or renewed unless the applicant or licensee furnishes the director with such proof of insurance as the director considers necessary to determine whether the applicant or licensee is adequately insured under this section.
(h) If the insurance of a licensee lapses or is canceled and new insurance is not obtained, the director shall suspend the license until the licensee provides evidence that insurance coverage required by this section has been obtained. A person shall not operate a vehicle immobilization service while a license is suspended under this section whether or not the action is appealed. A $52 fee must be paid before a license suspended under this section will be reinstated.
(i) No person with any direct or indirect ownership interest in the licensee’s vehicle immobilization service may have any operational control, direct or indirect, in any insurance company that provides insurance required by this section to the vehicle immobilization service. For purposes of this subsection, “operational control” means holding any management position with the insurance company (including, but not limited to, the chief executive officer, the president, any vice- president, or any person in a decision-making position with respect to insurance claims) or having the right to control the actions or decisions of any person in such a management position in the insurance company. (Ord. Nos. 27629; 30215)
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