16 Tex. Admin. Code § 86.400 - Insurance Requirements - Tow Truck Permits
(a) An applicant for a tow truck permit is
responsible for ensuring the electronic submission of a certificate of
insurance when applying for an initial license or permit, submitting a license
or permit renewal, changing a business name or affiliation, and upon request of
the department.
(b) The certificate
of insurance must be obtained from and submitted by an insurance company
licensed and authorized to do business in Texas pursuant to the Texas Insurance
Code.
(c) The name and address of
the applicant, licensee, or permit holder shown on the certificate of insurance
form must be the same as the name and address on the application or permit. The
applicant or permit holder is responsible for ensuring that the insurance
information on file with the department reflects the correct name and address
of the insured.
(d) Coverage.
(1) Tow truck permit applicants and permit
holders must obtain insurance for each permitted tow truck that meets the
following requirements:
(A) Incident
Management Towing
(i) a minimum of $500,000
liability insurance per tow truck per incident, which is combined single limit
liability for bodily injury to or death of an individual per occurrence, loss
or damage (excluding cargo) per occurrence, or both; and
(ii) a minimum of $50,000 of cargo or cargo
on hook insurance per tow truck per incident.
(B) Private Property Towing
(i) a minimum of $300,000 of liability
insurance per tow truck per incident, which is combined single limit liability
for bodily injury to or death of an individual per occurrence, loss or damage
(excluding cargo) per occurrence, or both; and
(ii) a minimum of $50,000 of cargo or cargo
on hook insurance per tow truck per incident.
(C) Consent Towing. A minimum of $300,000 of
liability insurance per tow truck per incident, which is combined single limit
liability for bodily injury to or death of an individual per occurrence, loss
or damage (excluding cargo or cargo on hook) per occurrence, or both.
(2) Insurance covering permitted
tow trucks must be kept in full force and effect at all times.
(3) The certificate of insurance must contain
a provision obligating the insurer give the department thirty days notice
before the effective date of a policy cancellation date.
(e) Replacement insurance filing.
(1) The department will consider a new
insurance filing as the current record of financial responsibility required by
this section if:
(A) the new insurance filing
is received by the department; and
(B) a cancellation notice has not been
received for previous insurance filings.
(2) The department may revoke a license if
the insurance has been canceled and a replacement policy has not been filed
prior to the cancellation date.
(f) Insolvency of insurance carrier. If an
insurer for a tow truck permit holder becomes insolvent, is placed in
receivership, or has its certificate of authority suspended or revoked and if
the tow truck permit holder no longer has insurance coverage as required by
these rules, the tow truck permit holder shall file with the department, not
later than the 10th day after the date the coverage lapses:
(1) evidence of insurance as required by
these rules; and
(2) an affidavit
that:
(A) indicates that an accident from
which the tow truck permit holder may incur liability did not occur while the
coverage was not in effect; or
(B)
contains a plan acceptable to the department indicating how the tow truck
permit holder will satisfy claims of liability against the tow truck permit
holder for an accident that occurred while the coverage was not in
effect.
(g)
Notices. The department will notify the Texas Department of Public Safety and
other law enforcement agencies of each tow truck permit that has been revoked
for failure to maintain the required insurance coverage.
Notes
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