§ 3.74.040. Insurance.

(a)

It shall be the responsibility of the licensee under this chapter to ensure that all vehicles operated under the authority of a funeral escort service license meet and maintain the insurance requirement established in this chapter. No license to operate a funeral escort service shall be issued until these conditions are met. As proof of compliance with these conditions, and before any license to operate a funeral escort service shall be issued, the applicant shall:

(1)

File with the city clerk an insurance policy or policies, to be approved as to form and endorsement by the city attorney, issued by an insurance company licensed to do business in the state or by an insurance carrier which must qualify either by having and maintaining at all times total assets in excess of one million dollars, or which has been engaged as an insurance carrier in the insurance business continually for more than twenty-five years.

The insurance policy must provide insurance coverage for each and every vehicle licensed and operated as part of the funeral escort service with a liability coverage of not less than one million dollars for the injury to or death of one person in any one accident and, subject to the limit for one person, to a limit of not less than one million dollars because of injury or death of two or more persons in any one accident, and to a limit of not less than five hundred thousand dollars for property damages in any one accident. Such policy of insurance shall cover each and every funeral escort vehicle at all times while the service is licensed by the city and shall be effective whether the vehicle at the time of an accident was being driven by the licensee or any employee, agent, or lessee or the licensee.

Such policy of insurance shall list each and every vehicle to be insured under the policy and agree to pay any final judgment against the insured resulting from negligent or reckless operation of any and all such vehicles listed therein. Such policy shall further contain an agreement that, upon failure to pay any final judgment of personal injury, including death, rendered against the insured or against any owner, lessee or licensee, or operator of the funeral escort vehicle so insured, the judgment creditor may maintain an action directly against the insurer in any court of proper jurisdiction to compel payment. Nothing contained in the policy or any endorsement thereof for any violation on the part of the insured or the provisions of the policy shall release the company from liability under this section in payment of such judgment.

Such policy shall be effective until at least twenty days after written notice of such cancellation has been filed with the city clerk of the city, and written acknowledgment of the service of such notice has been given to the company by the city clerk.

Such policy shall contain all of the conditions required by the laws of the state and by the insurance commissioner of the state and shall provide for actual notice to the city of any changes to be made in such policy.

(2)

An applicant may file with the city clerk an insurance policy approved as to form and endorsement by the city attorney which complies with all the requirements of subsection (a)(1) of this section, except that such policy may be of a blanket type so long as each and every vehicle operated by the licensee under this chapter is covered by said policy at all times such vehicle is operated to provide funeral escort services, even though such vehicle may not be specifically described in such policy.

(b)

The failure of any licensee to pay any judgment against him within ten days after such judgment becomes final and is not superseded by a proper bond on appeal shall be ground for the cancellation of all licensee issued to any such licensee.

(c)

The cancellation, withdrawal or other termination of any insurance policy required by this chapter, or failure to maintain the same in accordance with the provision of this section shall automatically terminate any license issued for the funeral escort service covered by such insurance policy, surety bond or other type of assuring agreement.

(Ord. No. 46-203 § 4)