Before any license is issued for any taxicab or livery car, the owner shall file with the city clerk, to be approved by the city council, either an insurance policy or bond as specified in subsection A of this section, or shall make an indemnity deposit as set forth in subsection B of this section.
A. Insurance Policy And Bond:
1. An insurance policy issued by an insurance company licensed and admitted to do business in the state shall be filed, providing liability insurance for each and every taxicab or livery car owner, operated and/or leased by the applicant with a liability coverage of no less than the minimum limits prescribed in 47 Oklahoma Statutes section 8-104 and any duly enacted amendment thereto exclusive of interest and cost with respect to each motor vehicle, said insurance coverage to be effective whether the taxicab or livery car was, at the time of the accident, being driven by the owner, his agent, his employee, lessee or licensee. The policy shall further provide that it cannot be canceled until ten (10) days' written notice of such cancellation has been filed with the city clerk. If the policy is canceled and the owner and/or operator of the taxicab or livery car fails to provide, within ten (10) days, another policy of insurance complying with the provisions of this subsection, or fails to furnish the bond provided for in subsection A2 of this section, then the license for such taxicab or livery car shall automatically become void and of no effect. The cancellation of any policy shall in no way effect or terminate any liability arising prior to the effective date of such cancellation. The policy of insurance shall carry the name of the maker of such taxicab and the numbers of the engine and body thereof. No cancellation notice shall be recalled by a letter of reinstatement. There shall be attached to all liability insurance policies issued pursuant to the requirements of this section the following endorsement:
In consideration of the premium stated in the policy to which this endorsement is attached, the company hereby waives a description of the motor vehicle to be insured hereunder and agrees to pay a final judgment for personal injury, including death, resulting therefrom, or damage to property, caused by any and all motor vehicles operated by the assured pursuant to the taxicab license issued by the City of Warr Acres, within the limits set forth in the schedule shown herein, and further agrees that upon its failure to pay any such final judgment, the judgment creditor may maintain any action in any court of competent jurisdiction to compel such payment. Nothing contained in the policy or any endorsement thereon, by the assured, shall relieve the company from liability hereunder or from the payment of such judgment. The policy to which this endorsement is attached shall not expire, nor shall cancellation take effect, until after ten (10) day's notice in writing by the company shall have been given to the City Clerk at his office in the City Hall. Said ten (10) day's notice is to commence to run from the date the notice is actually received at the office of the City Clerk. Attached to and forming a part of the policy number , issued by company to .
License holders licensed prior to the effective date hereof shall have thirty (30) days from the effective date to obtain the mandatory insurance in the required amount under penalty of forfeiting their license.
2. A bond is to be maintained throughout the term of the license, executed by some surety company or indemnity company authorized to do business in the state in the sum of not less than five thousand dollars ($5,000.00) for each and every taxicab or livery car to be licensed. The bond is to run to the city and is to be conditioned that the applicant will pay or cause to be paid any and all damages of every kind or character, either to property or persons, including the death of such persons, arising out of or proximately caused by the negligence of the applicant and/or owner, his or their agents, employees, lessees or licensees in the operation and/or maintenance of the taxicab or livery car covered by the bond. The bond shall carry the name of the maker of the taxicab and the numbers of the engine and the body thereof. The bond shall further provide that it cannot be canceled until ten (10) days' written notice of cancellation is filed with the city clerk. If the bond is canceled and the owner and/or operator of taxicab or livery car covered thereby fails to provide, within ten (10) days, another bond complying with the provisions of this subsection B2, then the license issued for such taxicab or livery car shall automatically become void and of no effect. Such cancellation, however, shall in no way affect or terminate any liability arising prior to the effective date of such cancellation.
3. The policy of insurance or bond shall contain a provision for a continuing liability to the full amount thereof notwithstanding any recovery thereon, and shall provide that, until the policy or bond is revoked as provided in subsections A1 and A2 of this section, the insurance company, surety or indemnity company will not be relieved from liability on account of nonpayment of premium.
4. The bond and policy of insurance shall further provide that insolvency or bankruptcy of the insured or principal shall not release the insurance company or bonding company from any payment due under the policy or guaranteed by the bond.
B. Indemnity Deposit:
1. In lieu of the policy or bond as provided in subsection A of this section, the owner or operator of a taxicab or taxicabs, or a livery car or livery cars may, at his or its option, make an indemnity deposit with the city treasurer in an amount to be determined according to the following schedule to cover liability, hereinafter referred to, incurred in connection with the operation of such taxicab or taxicabs or livery car or livery cars: a) one thousand dollars ($1,000.00) for the first five (5) taxicabs or livery cars or fraction thereof, b) two hundred dollars ($200.00) additional for each additional taxicab or livery car. The operator shall thereafter, on the last day of each calendar month, add to the deposit in the sum of ten dollars ($10.00) per car per month until the deposit is equal to the sum of five hundred dollars ($500.00) per taxicab or livery car.
2. Such indemnity deposit shall consist of cash or bonds of the United States government, of the city, or of the state. The city treasurer shall place the deposit in a separate and distinct trust fund to be used for the purposes set forth in this subsection. At the time of making the deposit, a sum sufficient to pay the premium on a surety bond shall be paid by the depositor, or in lieu thereof, the depositor and the city treasurer may agree upon some national bank as a depository, and in such event the city treasurer and the depositor shall turn over and deliver to such national bank so selected all of the cash or bonds so deposited for safekeeping and shall take a joint custody receipt in favor of the city treasurer and the depositor, which receipt shall state that the cash or bonds so placed in custody shall be delivered only upon the joint written request of the city treasurer and the depositor, their successors and assigns, or upon the happening of any one or more of the things provided for in subsections B3, B4 and B5 of this section. Such cash or bonds may be delivered to the city treasurer upon his individual official receipt; and in the event it becomes necessary to so deliver the cash bonds back to the city treasurer for any reason whatsoever, then the city treasurer shall purchase and pay for, out of the cash or bonds, a surety bond to cover such deposit; further, the depositor shall expressly agree in writing that the deposit so made shall be used to cover the liabilities provided for in this subsection.
3. When any judgment of any court in the state rendered at the suit of any plaintiff against such owner, operator or lessee for death, personal injury or property damage arising out of or proximately caused by the negligence of the owner, operator, lessee or licensees in the operation and/or maintenance of the taxicab, taxicabs, livery car or livery cars covered by the deposit becomes final and has not been paid by such owner, operator or lessee making such deposit within ten (10) days after such judgment becomes final, the city treasurer shall have authority to pay such judgment from such deposit upon presentation of a duly authenticated copy of the judgment properly certified by the court clerk or magistrate having custody of the record thereof. For each time the city treasurer is called upon to pay any such judgment, a fee or charge of five dollars ($5.00) shall be made by the city treasurer and deducted from the special fund and credited to the general fund of the city, which fee or charge is levied to cover the expense of the city in such respect. The deposit, however, shall cover only damages or injuries occurring after the date of making such deposit.
4. When the city treasurer has paid any judgment authorized to be paid by the foregoing provision, he shall forthwith notify such operator, owner or lessee making such deposit of such payment. Immediately upon any such deposit becoming impaired by any such payment, the taxicab or livery car license or licenses of the owner, operator or lessee making such deposit shall be suspended and shall remain so suspended until the deposit is restored to the amount required under this section. If such deposit is not restored within ten (10) days from the service of notice of its impairment by the city treasurer, the taxicab or livery car license or licenses of the owner, operator or lessee shall be revoked.
5. In the event it becomes necessary to dispose of any of the bonds of the United States government, of the city, or of the state which are put up in any such deposit, the same shall be sold by the city treasurer on the open market for the current market price, or for the nearest thereto obtainable; and the owner, operator or lessee making such deposit shall make such deposit complete in the event the bonds sell for less than par. Upon receiving notice requiring the same to be done from the city treasurer, if the deposit is not made complete within ten (10) days from the service of notice, the taxicab or livery car license or licenses of such owner or operator shall be revoked. All interest or any cash or bonds placed in any such deposit shall be placed along with any deposit and held by the city treasurer in the same way that the deposits are held. (Ord. 627 §3, 1985: Ord. 541 §1, 1982: prior code §19-15)