§ 7.80.241. Self-insurance plan in lieu of comprehensive auto liability insurance—Requirements.

A.

In lieu of a comprehensive auto liability insurance policy as required by Section 7.80.220, a licensee or applicant may maintain a plan for self-insurance, provided such plan fulfills the requirements of this section and is approved by the business license commission.

The plan for self-insurance submitted to the county shall be accompanied by certified financial statements reflecting the financial condition of the applicant or licensee, and other evidence which will establish to the satisfaction of the county the ability of the applicant or licensee to satisfy his obligations for public liability and property damages without affecting the stability and permanency of the licensed taxicab operation. Such evidence shall include, but not be limited to, the following:

1.

A formal corporate resolution adopting a policy of self-insurance;

2.

A current set of financial statements audited by a certified public accountant indicating net assets of the applicant or licensee of at least $1,000,000.00;

3.

A valid Certificate of Self-Insurance duly issued by the Department of Motor Vehicles of the state of California.

B.

Any taxicab operator who maintains a self-insurance plan approved by the business license commission shall:

1.

Maintain a fund of a minimum of $1,000,000.00 on deposit at all times in segregated trust accounts that are established solely for claims settlements and are insured by the Federal Depository Insurance Corporation. A copy of such trust account statements shall be provided to the business license commission within 30 days of issuance;

2.

Provide annually, at the time of renewal of the taxicab operator license, a complete set of financial statements, not more than 120 days old, of the licensed operation audited by a certified public accountant indicating net assets of at least $1,000,000.00, and provide biannually an actuarial statement issued by a licensed actuarial on the reserve adequacy of the operator;

3.

Immediately notify the tax collector upon the withdrawal, cancellation or revocation of a Certificate of Self-Insurance issued by the Department of Motor Vehicles;

4.

Immediately notify the tax collector of any claim, judgment, settlement, award, verdict or change in financial standing that materially affects the stability of the self-insurance plan;

5.

In the event a final judgment which has been obtained in a court of competent jurisdiction against a taxicab operator remains unsatisfied for a period of 10 days, such taxicab operator shall obtain and provide an irrevocable letter of credit or similar surety to the county for the amount of said judgment which shall be payable to the county for the benefit of the person who has obtained such judgment;

6.

Provide the county with a detailed quarterly report of all liability claims paid and liability claims outstanding, including reserves for each outstanding claim;

7.

Notify the county within 10 working days of any claim or initial reserve which is estimated to be in the amount of $25,000.00 or more;

8.

Provide the county with 30 days' written notice prior to any change in or cancellation of a self-insurance plan. In addition, any taxicab operator providing such notice cancelling a self-insurance plan shall continue to comply with the reporting requirements of this section and maintain a segregated fund sufficient to satisfy any pending claims from occurrences arising during the period of self-insurance until any and all claims are either satisfied or withdrawn.

(Ord. 89-0086 § 4, 1989.)