A. Surety Bond; Deposit:
1. Required: When a bond is required for any license, the applicant shall file with the city clerk a good and sufficient corporate surety bond, or in lieu of it, cash in the amount for which the bond is required or United States government bonds of an equivalent market value.
2. Minimum Amount: Except where otherwise provided, the bond or other security shall be in the sum of at least five thousand dollars ($5,000.00).
3. Indemnification: The bond or other security shall be conditioned that the licensee will comply with all requirements of law and of this code pertaining to the licensed activity and that the licensee will indemnify the city and save it harmless from all loss or damage by reason of any act or omission of the licensee or agents or employees of the licensee. (1982 Code § 7.113)
B. Liability Insurance:
1. Required: When liability insurance is required for any license, the licensee shall have on file with the city clerk at all times a currently effective liability insurance policy issued by a reliable insurance company authorized to do business in Minnesota.
2. Minimum Coverage: Except where otherwise provided, coverage shall be in the amount of at least one hundred thousand dollars ($100,000.00) for one person and three hundred thousand dollars ($300,000.00) for more than one person arising out of a single occurrence.
3. Payment: The policy shall specifically provide for the payment by the insurance company on behalf of the insured of all sums which the insured shall become obligated to pay by reason of liability imposed upon the insured for injury or damages to persons other than employees.
4. Notice Of Cancellation: The policy shall also provide that no cancellation of the policy for any cause can be made by either the insured or the insurance company without first giving ten (10) days' notice to the city in writing of intention to cancel, addressed to the city clerk.
5. Decreased Coverage: No payment of any claim by the insurance company shall in any manner decrease the coverage provided for in respect to any other claim or claims brought against the insured or insurance company thereafter.
6. In Lieu Of Bond: If the insurance policy is made subject to all the conditions of a bond, it may be filed in lieu of the bond. (1982 Code § 7.114)
C. Approval Of Bond And Insurance:
1. Commencement Of Business: No licensee shall commence business until any required security, other than cash, and any required insurance policy has been approved by the city clerk if the license is granted by the city clerk and by the city council if the license is granted by the city council.
2. Continuance Of Business: No licensee shall continue in business after the security or insurance is no longer in force.
3. Disapproval: The bond or other security or the insurance policy may be disapproved upon a finding that the security or policy does not meet requirements of this code or of law, or that the surety or insurer may become unable to pay any claim which may arise. (1982 Code § 7.115)
D. Automatic Termination: A license shall automatically terminate upon termination of any required bond, insurance coverage or other security. (1982 Code § 7.130)