1. (a) Filing required. Every motor bus company shall file and maintain evidence of currently effective bodily injury and property damage liability insurance, and workers' compensation insurance in the amounts required by subsection (c) of this section, and such motor bus company shall not operate any motor bus upon the highways of this state unless the motor bus company has filed and the commission has accepted evidence of currently effective insurance, as prescribed by subsection (d) of this section. Operation of a motor bus by a motor bus company over the public highways of this state without the appropriate insurance coverage in effect and on file with the commission shall be a violation of this subchapter.
2. (b) Submission of evidence of financial responsibility. The evidence of financial responsibility, as prescribed by subsection (d) of this section, shall be submitted prior to issuance of any operating authority to a motor bus company.

3. (c) Minimum limits. The minimum limits of financial responsibility for a motor bus company are as follows.

   1. (1) Combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to property of others (excluding cargo), for any vehicle with a seating capacity of 26 passengers or more--$5 million.
   2. (2) Combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to property of others (excluding cargo), for any vehicle with a seating capacity of 25 passengers or less--$500,000.
   3. (3) Workers' compensation insurance coverage in the amount required by the Workers' Compensation Act.
4. (d) Proof required. The evidence of insurance required by this section shall be in the form set forth by the commission, and shall be duly completed and executed by an authorized representative of an insurance company holding a certificate of authority to transact such kinds of insurance business in the State of Texas, or by a surplus lines insurer approved by the Texas Department of Insurance. The cancellation of a policy of insurance may be effected only by the insurance company or the insured giving 30 days' notice in writing to the commission. The 30 day notice period will be calculated from the date notice is actually received by the commission.

Source Note:The provisions of this §5.205 adopted to be effective July 18, 1995, 20 TexReg 4917.