SECTION 86.400. Insurance Requirements--Tow Truck Permits  


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  • (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.

Source Note: The provisions of this §86.400 adopted to be effective April 15, 2008, 33 TexReg 2940