(a) Before the issuance of a license to operate a taxicab or motor vehicle for hire, a licensee shall file a certificate signed by a duly authorized officer of a company authorized to write insurance in the State to the effect that a policy of insurance has been issued to the licensee and is in full force and effect, and that the premium has been paid as required thereon, together with a true copy of the policy contract or certificate of insurance. In cases where the insurance premium is payable monthly, proper certificates or evidences of payment of the premiums shall be delivered to the City Clerk not later than the first day of each month. Such policy of insurance shall be in the sum of one hundred thousand dollars ($100,000), conditioned for the payment of any judgments recovered against a person for death or injury to persons or damage to property caused in the operation, maintenance, use or defective construction of such motor vehicle. Such policy of insurance may limit the liability of the insurer on any judgment to one hundred thousand dollars ($100,000) for bodily injuries or death of one person and two hundred thousand dollars ($200,000) for bodily injuries or death of more than one person, and one hundred thousand dollars ($100,000) for damage to or destruction of property. On all judgments recovered upon claims arising out of the same transaction, or transactions connected with the same subject of action, the maximum liability for public liability shall be two hundred thousand dollars ($200,000), and for property damage one hundred thousand dollars ($100,000). Such policy of insurance shall contain a provision for a continuing liability thereunder to the full amount thereof, notwithstanding any recovery thereon, and a provision that until the policy is revoked as provided in this chapter, the insurance company will not be relieved from liability on account of nonpayment of premium, failure to renew a license at the end of the year or any act or omission of the named insured. Any insurance company whose policy has been so filed pursuant to this section may file a notice with the Police Department of its intention to terminate and cancel such policy and give notice thereof to the named licensee. Whereupon, ten days after such filing, such licensee or owner shall cease to operate or cause to be operated in the City such taxicab or motor vehicle for hire. The license issued therefor shall be automatically revoked and liability on such policy shall cease and terminate, provided that the liability of the insurance company thereon for any act or omission of the licensee or owner occurring prior to the effective date of cancellation shall not be thereby discharged or impaired.
(b) In lieu of the policy of insurance provided for in subsection (a) hereof, the licensee may furnish a good and sufficient surety bond, in a form approved by the City Attorney, in the penal sum of two hundred thousand dollars ($200,000) for each taxicab, with two or more good and sufficient personal sureties, or with a surety company satisfactory to the Police Department, holding and binding the principal and sureties to the same conditions as are required in policies of insurance provided for in subsection (a) hereof. In the case of personal sureties, each such surety shall own property in the City, in the surety's own name, of a value of at least double the amount as such bond, and shall execute an affidavit of justification.