(A) Filing; naming of city as additional named insured. Before any permit shall be issued under this chapter to any owner of a taxicab, or before any renewal of a permit shall be granted, the owner shall file with the City Secretary, and thereafter keep in full force and effect, a policy of public liability insurance approved by the Director or his or her designated representative, and executed by an insurance company duly authorized to do business in the state, and performable in the county, insuring the public against any loss or damage that may result to any person or property from the operation of the taxicab covered or to be covered by the permit. Such insurance policies shall name the city as an additional named insured, and such policies shall provide for prior notice of cancellation to the city as provided in this chapter.
(B) Minimum amount of coverage. The amount of insurance required by this chapter shall not be less than the following sums:
(1) For the injury or death of any one person in any one accident: $20,000;
(2) For total liability in any one accident or personal injuries or death: $40,000; and
(3) For injury or destruction of property in any one accident: $15,000.
(C) Minimum liability. The minimum amount of insurance liability shall never be less than the amount established by the statutes of the state under the Safety Responsibility Act, as may be amended.
(D) Persons protected. The public liability insurance required by this subchapter shall be for the protection of the passengers of the insured taxicab and for the public, but shall not cover personal injuries sustained by the servants, agents or employees of the person filing the insurance.
(E) Provision for continuing liability. All policies of public liability insurance required by this subchapter shall contain a provision for a continuing liability thereon up to the full amount thereof, notwithstanding any recovery thereon.
(F) Self-insurance. A holder may be self-insured in the manner prescribed by the State Motor Vehicle Safety-Responsibility Act (Tex. Transportation Code §§ 601.001 et seq.) if the Director determines that the holder can furnish protection of the same character and amount as if the insurance were carried by an insurance company. In considering authorization of self-insurance, the Director shall consider the financial fitness and the past record of management responsibility of the holder and may establish maximum coverage limits for which the holder may self-insure. If, at any time, the Director determines that a self-insured holder is unable to provide adequate self-insurance, the Director by written notice shall order the holder to acquire insurance from an insurance company, and the holder shall comply with the order not more than 30 days after the notice is served.
(G) Cancellation.
(1) If any insurer desires to be released from any insurance filed under this subchapter, it may give written notice of the desire to the Director at least 30 days before it desires its liability released, he or she must also furnish new assurance by the expiration of the 30-day period provided for in this division (G), and shall discharge the first insurer from any liability which shall accrue after the time of approval of the new policy, or shall discharge the first insurer after the expiration of the 30-day period.
(2) If any policy is so canceled upon the request of the insurer, and no new insurance policy is filed before the cancellation of the original insurance, the license to operate taxicabs granted to the insured shall be automatically revoked.
(H) City not liable for solvency of insurer; owner’s liability not affected; suits on policy. Neither the city, nor any officer of the city, shall be held liable for the pecuniary responsibility or solvency of any insurer under the provisions of this subchapter, or in any manner become liable for any sum on account of any claim or act or omission relating to the insured vehicle, nor shall the liability of the owner of any vehicle be in any manner limited or changed by reason of the provisions of this subchapter, but the judgment creditors having causes of action secured thereby shall be authorized to sue directly on such policy of insurance without impleading the city, and all persons known to any insurer to have been injured or damaged in the same accident and claiming damages thereunder may be made parties without priority of claim on payment in any suit had or instituted on account of such matters.
(1998 Code, § 126-234) (Ord. 05-19, passed 7-6-2005)