§ 39-12-27 - Security for protection of the public.
SECTION 39-12-27
§ 39-12-27 Security for protection of thepublic. – No certificate or permit shall be issued to a motor carrier or remain in force,unless the carrier shall have furnished the administrator with evidence ofinsured financial responsibility. Each motor carrier shall satisfy therequirements by furnishing the administrator with proof of the carrier'sability to meet any and all legally established claim or claims for damages byreason of personal injury to, or the death of, any one person in an amount ofat least two hundred and fifty thousand dollars ($250,000), or by reason ofpersonal injuries to, or the death of all persons injured or killed in any oneaccident of five hundred thousand dollars ($500,000), (subject to a maximum oftwo hundred and fifty thousand dollars ($250,000) for bodily injuries to or thedeath of one person), and for damages to property (excluding cargo) in theamount of at least twenty-five thousand dollars ($25,000). A filing fee of tendollars ($10.00) must accompany each insurance filing. All revenues receivedunder this section shall be deposited as general revenues. No common orcontract carrier by motor vehicle shall engage in intrastate commerce, norshall any certificate or permit be issued to the carrier or remain in force,unless and until there shall be filed with the administrator evidence ofinsured financial responsibility by the carriers to meet any and all legallyestablished claim or claims for loss or damage to all property belonging to theshipper or consignee and coming into possession of the carriers in connectionwith their motor carrier transportation service in an amount of at leasttwenty-five thousand dollars ($25,000); provided, however, that therequirements of this section shall not apply in connection with thetransportation of commodities declared by the administrator, after notice andhearing, to be exempt from cargo insurance requirements. Each motor carrierrequired by the provisions of this chapter to furnish evidence of insuredfinancial responsibility shall satisfy such requirements by filing with theadministrator:
(1) A certificate of insurance issued by an insurance companyauthorized to transact business in this state, showing that the motor carrierhas a policy of insurance in force insuring the carrier against publicliability, property damage, and damage or loss to cargo, in at least theminimum amounts herein prescribed; or
(2) A certificate on blanks furnished by the administratorand issued by the general treasurer that the motor carrier has filed with thegeneral treasurer a bond in the amount of one hundred thousand dollars($100,000), issued by a surety company authorized to transact business in RhodeIsland and conditioned upon payment of any sum up to and including the maximumamounts required in this section in the satisfaction of any final judgmentrendered as the result of any claim, or claims for damages against the motorcarrier. The administrator will give consideration to and will approve theapplication of a motor carrier to qualify as a self-insurer in lieu of theinsurance prescribed in this section, if the carrier furnishes a true andaccurate statement of its financial condition and other evidence as willestablish to the satisfaction of the administrator the ability of the motorcarrier to satisfy its obligations for liability and bodily injury or death andliability for the property damage in the minimum amounts prescribed thereinwithout affecting the stability or permanency of the business of the motorcarriers. All certificates of insurance, surety bonds, and other securities andagreements filed with the administrator must show the coverage effectivecontinuously until canceled. Certificates of insurance, surety bonds, and othersecurities and agreements shall not be canceled or withdrawn until after thirty(30) days notice in writing by the insurance company, surety or sureties, motorcarrier, or other party thereto, as the case may be, has first been given tothe administrator at his or her office in Providence, which period of timeshall commence to run from the date the notice is actually received at theoffice of the administrator. However, the surety bonds, certificates ofinsurance, and other securities and agreements may be canceled prior to theexpiration of the thirty (30) days, if on or before the date notice ofcancellation is received at the office of the administrator, a replacementfiling acceptable to the administrator shall have been received, thereplacement being effective on or before the effective date of thecancellation. No cancellation may become effective before the date of receiptof the notice by the administrator.