(a) The director shall require evidence of financial responsibility from the owner or operator, or both, of a taxicab company before issuing a taxicab license and decal to engage in the taxicab business. The owner or operator, or both, shall have insurance in force or other evidence of financial responsibility, so long as the taxicab is used in business. Such evidence of financial responsibility may be in one of the following two forms:
(1) Insurance policy.
(A) The director shall retain the original insurance policy issued by a company licensed to do business in the State of Hawaii. The policy shall be duly countersigned by its authorized Hawaii agent complete with all endorsements and attachments or a certified copy thereof. Such policy shall provide for primary public liability insurance coverage in the amount of $100,000 because of bodily injury to or death of one person in any accident, and in the amount of $200,000 because of bodily injury to or death of two or more persons in any one accident, and property damage insurance in the amount of $50,000 because of damage to or destruction of property of others in any one accident for each taxicab for hire. All policies must be valid for the duration of the taxicab business license. Insurance policies on vehicles regulated under this article shall contain a provision that the policy will not be reduced in coverage or canceled without 30 calendar days’ prior written notice to the director by the authorized Hawaii agent for the insurance company.
(B) The director may accept a binder for the issuance of an insurance policy in lieu of the policy itself for a period not exceeding 90 days; provided that the binder indicates that the policy shall be in conformance with the requirements of this paragraph; provided further that a binder shall not be accepted in lieu of a policy for an owner or operator, or both, who has canceled or has had canceled an insurance policy referred to in this subdivision within the previous three years.
(2) Legal tender or other securities. A deposit with the director of legal tender, cashier’s check, bank draft, irrevocable letter of credit, certified check, bond, or other security determined to be satisfactory by the director in the total amount of $200,000. Such security shall be held by and made payable to the director and shall not expire for a period of 2 years after the termination of the taxicab license for the taxicab carrying passengers or property for hire. The licensee shall not receive interest for such deposit. Upon expiration of such two-year period, the licensee shall be refunded the deposit or balance thereof, provided no suit against the proceeds of such security has been commenced during such period. The conditions of liability for the security in this subdivision shall be the same as specified for the policy of insurance contained in this section. The director shall satisfy from the proceeds of such security any judgment against the licensee or operator, or both, arising from the operation of a taxicab for hire. Neither the city, its officers, employees, agents, or appointees shall be liable to the licensee or operator, or both, for any payments made pursuant to such judgment.
(b) If at any time after the issuance of the taxicab license and license decal:
(1) The required insurance coverage is reduced or canceled and the licensee fails to immediately replace such coverage with the securities described in subsection (a); or
(2) The security deposited with the director falls below the required amount as a result of claims satisfied against the licensee and the licensee fails to immediately replenish such security to the required amount, the director shall revoke or suspend the taxicab license and license decal.
(c) If a binder is accepted in lieu of an insurance policy, and a policy which conforms to the requirements of subsection (a)(1) is not provided to the director within 90 days of issuance of the taxicab license and taxicab decal, the director shall revoke or suspend the taxicab license and taxicab decal.
(1990 Code, Ch. 12, Art. 1, § 12-1.23) (Added by Ord. 88-98; Am. Ords. 89-54, 93-85)