No person shall operate a school bus or cause or permit such to be operated, nor shall any license be issued hereunder, until and unless the applicant for such license deposits with the Director of Finance either:
(a) A policy or certificate of liability insurance for each school bus for which a license is sought, acceptable to and approved by the Director of Law, indemnifying the applicant in the sum of at least one hundred thousand dollars ($100,000) for injury to one person and five hundred thousand dollars ($500,000) for injury to more than one person and twenty thousand dollars ($20,000) property damage in any one accident, through the operation of each school bus of the applicant. The policy shall further contain a clause obligating the insurance company to give ten days written notice to the Director of Public Safety before cancellation of such policy. Such license shall expire upon the lapse or termination of the policy of insurance unless a new policy of insurance meeting the requirements of this subsection is substituted therefor or unless the licensee submits a bond as provided in subsection (b) hereof; or
(b) A bond of the applicant with a solvent and responsible surety company authorized to act as surety under the laws of the State, this bond conditioned upon the applicant paying all final judgments recovered against the applicant as the result of any accident arising out of the operation of any of the applicant's school buses in or within the City. This bond shall be in the amount of not less than fifty thousand dollars ($50,000), shall be approved by the Director of Law and shall contain a clause obligating the surety to give ten days written notice to the Director of Public Safety before cancellation.
(c) It shall be the duty of every such licensee to furnish to the Director of Public Safety not later than the third day of each month, a full, accurate and complete statement of subsequent claims filed and judgments rendered against such licensee arising out the operation of school buses, which statement shall be in such form as the Director of Public Safety shall prescribe. Any licensee failing to comply with the requirements of this subsection shall be subject to the penalty provided for in Section 765.99, provided that each day's failure or neglect shall constitute a separate offense.
(d) Such bond or policy of insurance shall contain a provision for a continuing liability thereunder to the full amount thereof, notwithstanding any recovery thereon. If at any time in the judgment of the Director of Public Safety such bond or policy is not sufficient for any cause the Director of Public Safety may order the owner of such school bus to replace such bond or policy with another approved by the Director of Public Safety and the Director of Law. Failure to furnish such replacement bond or policy within the time specified in such order shall function as a revocation of the license to operate the particular vehicle or vehicles covered by the bond or policy ordered replaced.
(e) In the case of school buses already licensed by a municipality abutting the City and inspected and approved by the State Highway Patrol and for which a bond or policy or certificate of liability insurance has been furnished as per subsection (a) or (b) hereof to the municipality issuing such license, it shall be sufficient for the owner or operator of such school bus to file a copy of such bond or policy or certificate of insurance with the Director of Finance of this City; provided, however, that such bond or policy or certificate of insurance is approved by the Director of Public Safety and Director of Law of this City, which approval shall not be given unless the terms of such bond or policy or certificate of insurance are such as will, in the opinion of the Director of Law, protect passengers or persons or persons or property injured or damaged by the operation of such school bus in the City or while carrying passengers to or from the City.
(Ord. 1968-132. Passed 12-9-68. )