§ 6-44-43 — Insurance

Sec. 6-44-43. - Insurance.

A. No certificate of public convenience and necessity shall be issued unless the applicant provides to the permits office proof of financial responsibility by either a written policy of liability insurance coverage per the requirements of the risk management department of the City of Memphis which may be amended from time to time to remain current with the current risk factors or section 6-44-6(A)(3), a self-insurance certificate issued by the commissioner of insurance and finance for the State of Tennessee. B. A written policy of liability insurance coverage must be issued by an insurance carrier duly authorized to do business in the State of Tennessee. Any insurance policy issued pursuant to this section shall further provide that the insolvency or bankruptcy of the insured shall not relieve the company form the payment of damages for injuries or death sustained or loss occasioned within the provisions of the policy and that the prepayment of any judgment that may be recovered against the insured upon any claim covered by such policy shall not be a condition precedent to any right of action against the company upon the policy, but that the company shall be bound to the extent of its liability under the policy and shall pay and satisfy such judgment, and that action may be maintained upon such judgment by the injured person or his or her heirs, or personal representatives, as the case may be, to enforce the liability of the company as therein set forth. C. Any insurance policy issued pursuant to this section shall further provide that the same may not be canceled or not renewed without at least 30 days' written notice to be sent by registered or certified mail, return receipt requested, to the city treasurer except that cancellation for non-payment of premium shall require no more than ten days, properly mailed, written notice of cancellation. D. If the certificate holder fails to fully and timely comply with all the provisions of section 6-44-6(A)(4), the certificate of public convenience and necessity affected by such fund shall fail within the period specified in such notice of cancellation or non-renewal of a liability insurance policy or self-insurance certificate to provide a policy or self-insurance certificate meeting the requirements of this section on or before the date of cancellation or non-renewal, then the certificate of certificate of public convenience and affected by such cancellation or non-renewal shall be immediately suspended. Any such suspended certificate of public convenience and necessity may be revoked after a public hearing to be held following ten days' written notice, sent registered or certified mail, return receipt requested, the date of post mark and the date of cancellation, on-renewal, or the date the section 6-44-6(A)(4) fund falls below the level provided for in section 6-44-6(A)(4)(a) being day one, upon the finding that said policy or self-insurance certificate has not been provided or said section 6-44-6(A)(4) fund has not been properly funded. Said suspended certificate of public convenience and may be reinstated by the permits office before said hearing or at said hearing, upon compliance in full with the provisions of this section, so long as no other cause for suspension or revocation exists. An application for a certificate of public convenience and, after revocation, shall be treated as an initial application. E. No passenger vehicles for hire shall be operated upon the suspension or revocation of a certificate of public convenience.

(Ord. No. 5585, 5-19-2015)