§ 62-45. Proof of financial responsibility required.

(a)

Every person engaging in the business of operating a taxicab within the town shall file with the town council proof of financial responsibility. The town council shall not issue any certificate of convenience and necessity, franchise, license, permit or other privilege or authority to any person authorizing such person to engage in the business of operating a taxicab within the town unless such person first files with the town council proof of financial responsibility.

(b)

As used in this section, the term "proof of financial responsibility" means a certificate of any insurance carrier duly authorized to do business in the state certifying that there is in effect a policy of liability insurance insuring the owner and operator of the taxicab business, his agents and employees while in the performance of their duties, against loss from any liability imposed by law for damages, including damages for care and loss of services because of bodily injury to or death of any person and injury to or destruction of property caused by accident and arising out of the ownership, use or operation of such taxicab, subject to limits (exclusive of interests and costs) with respect to each such motor vehicle as follows: $30,000.00 because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, $60,000.00 because of bodily injury to or death of two or more persons in any one accident, and $25,000.00 because of injury to or destruction of property of others in any one accident.

(c)

Every person who engages in the taxicab business and who is a member of or participates in any trust fund or sinking fund, which trust fund or sinking fund is for the sole purpose of paying claims, damages or judgments against persons engaging in the taxicab business and which trust fund or sinking fund is approved by the town council shall be deemed a compliance with the financial responsibility provisions of this section; however, in the case of operators of 15 or more taxicabs, the limits (exclusive of interests and costs), with respect to each such motor vehicle shall be as follows: $20,000.00 because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, $40,000.00 because of bodily injury to or death of two or more persons in any one accident, and $25,000.00 because of injury to or destruction of property of others in any one accident.

(Code 2003, § 28-62)

State law reference

Financial responsibility of taxicab operators, G.S. 20-280.