During the term of a permit issued pursuant to this chapter, the permittee or owner(s) of a tow car authorized by the permit shall maintain in full force and effect at no cost to the city a comprehensive auto and general liability insurance policy:
A. In an amount no less than five hundred thousand dollars ($500,000.00) single limit per occurrence; and
B. Issued by an admitted insurer or insurers as defined by the California Insurance Code; and
C. Providing that the city, its officers, employees and agents are to be named as additional insureds under the policy; and
D. Covering all losses and damages as specified in Section 5.144.100 of this chapter; and
E. Stipulating that the policy will operate as primary insurance and that no other insurance effected by the city or other named insured will be called on to contribute to a loss cover thereunder; and
F. Providing that no cancellation, change in coverage, or expiration by the insurance company or the insured shall occur during the term of the tow car vehicular permit, without thirty (30) days' written notice to the director prior to the effective date of such cancellation or change in coverage.
G. Notwithstanding any other provision of this section, an owner of any tow car operating under the provisions of this chapter may provide for a deposit and insurance applicable to such tow car provided the following conditions are met:
1. Such owner becomes approved as a depositor under the compulsory financial responsibility law of the state of California pursuant to Section 16020, et seq., of the Vehicle Code. A certified copy of such acknowledgment of deposit shall be filed with the director; and
2. Such owner obtains a comprehensive liability insurance policy executed by an insurance company authorized to do business in the state of California by the insurance commissioner of the state of California or not less than five hundred thousand dollars ($500,000.00) single limit per occurrence, coverage to commence at the amount of said deposit. The city, its officers, agents and employees shall be named insureds, and said policy shall operate as primary insurance and no other insurance effected by the city, its officers, agents or employees, or other named insured shall be called upon to contribute to a loss covered thereunder. Said policy shall contain an endorsement that the insurance company issuing it will not allow the same to be cancelled for any purpose or changed for any purpose without serving thirty (30) days' notice of cancellation or change upon the director. Such service shall be by registered mail.
In the event of failure of any owner to obtain or maintain in effect such deposit or such insurance policy, the director shall order the cancellation of the permit as provided in this section. (Prior code § 42.04.058)