1. (a) Each holder of a private carrier's permit shall carry at least $500,000 of liability insurance and file proof of insurance with the commission for each vehicle registered. Such insurance must be sufficient to pay, not more than the amount of the insurance, for each final judgment against the permit holder (combined single limit) for bodily injury to or death of an individual per occurrence, and loss or damage to property (excluding cargo) per occurrence, or both.

2. (b) Each holder of a private carrier's permit shall maintain proof of insurance in their permitted vehicles at all times. This proof shall be in the form prescribed by the commission and the Texas Department of Insurance in coordination with the Texas Department of Public Safety.

   1. (1) No insurance policy or certificate of insurance will be accepted by the commission unless issued by an insurance or surety company licensed and authorized to do business in the State of Texas. The commission adopts Department of Insurance "Form E" (Uniform Motor Carrier Bodily Injury and Property Damage Liability Certificate) and "Form K" (Uniform Notice of Cancellation of Motor Carrier Insurance Policies) for the purposes of this section (which forms have been prescribed and approved by the Department of Insurance). These forms must be filed with the commission and signed or countersigned by an authorized agent of the insurance or surety company. The commission will accept a certificate of insurance issued by a surplus lines insurer that meets the requirements of Insurance Code, Article 1.14-2 and rules adopted by the Department of Insurance under that article.

   2. (2) If the insurer or surety of a permittee subject to this rule becomes insolvent or becomes involved in a receivership or other insolvency proceeding, the permittee may apply for approval of a surety bond or insurance policy issued by another surety or insurer upon filing an affidavit with the commission. Such affidavit shall be executed by the permittee and show that:

      1. (A) no accidents or claims have occurred during the insolvency of the insurance carrier or surety; and
      2. (B) that all damages and claims have been satisfied; and
      3. (C) the commission shall notify the Texas Department of Public Safety of each notice received under this subsection.
3. (c) Each holder of a private carrier's permit shall complete an affidavit stating that the permittee has knowledge of, and will conduct operations in accordance with, all federal and state safety regulations.

4. (d) The Department of Public Safety may request that the commission suspend or cancel a private carrier's permit if a permittee:

   1. (1) has an unsatisfactory safety rating under 49 Code of Federal Regulations, Part 385; or
   2. (2) has multiple violations of a provision of Texas Civil Statutes, Article 6675d, a rule adopted under that article or the Uniform Act Regulating Traffic on Highways (Texas Civil Statutes, Article 6701d). A request for suspension or revocation under this subsection shall be submitted in writing by the executive director of the Texas Department of Public Safety, and shall include appropriate documentation evidencing the violation. The commission or administrator may suspend or cancel an original or renewal permit in response to such a request, after notice and hearing under the Alcoholic Beverage Code and the rules of the commission, pursuant to Alcoholic Beverage Code, §11.61(b)(7).

Source Note:The provisions of this §35.5 adopted to be effective August 26, 1996, 21 TexReg 7729.