(A) The licensee or franchisee shall show financial responsibility or a certificate of insurance coverage prior to obtaining a license or franchise whereby each vehicle to be used by the licensee or franchisee shall be covered against loss or injury in the following amounts:
(1) $200,000 when the claim is one for death by wrongful act or omission;
(2) $500, 000 for any and all claims arising out of the operation of the vehicle; and
(3) $500,000 for any and all other claims arising out of the business activities.
(B) (1) The licensee or franchisee shall also provide evidence of workers compensation insurance for employees, the insurance policy shall be for the full term of the license or franchise and shall provide for the giving of ten days prior notice to the city of the termination or cancellation of the policies.
(2) In case any of the policies are terminated, the license or franchise shall be automatically revoked upon receipt by the city of the termination or cancellation.
(`87 Code, § 506.06)