A person may not operate an amusement ride unless such person has satisfied and is continuing to satisfy the following requirements.

1. (1) Such person must file with Texas Department of Insurance (TDI) the insurance policy or a photocopy of the insurance policy certifying that the policy is a true copy of the insurance policy provided to the insured as required by the Act, §4(a)(2). The Act, §4(a)(2), requires that any person who operates an amusement ride must have currently in force an insurance policy written by an insurance company authorized to do business in this state or by a surplus lines insurer, as defined by the Insurance Code, Article 1.14-2, or an independently procured policy subject to the Insurance Code, Article 1.14-1, in an amount of not less than $100,000 per occurrence with a $300,000 annual aggregate for Class A amusement rides and an amount of not less than $1 million per occurrence for Class B amusement rides insuring the owner or operator against liability for injury to persons arising out of the use of the amusement ride. The policy shall apply on a per occurrence basis to bodily injury. Combined single limit policies covering bodily injury and property damage or any other coverage combined with bodily injury will not be acceptable. The following requirements must also be met.

   1. (A) The policy or certified photocopy of the policy must be complete, including all applicable coverage forms and endorsements. Certificates of insurance will not be acceptable for this purpose.
   2. (B) The policy must contain a schedule listing by name and serial number if applicable each amusement ride insured by the policy. In the event of additions or deletions of amusement rides during the policy term, such changes shall be shown on a change endorsement, a copy of which must be submitted to TDI. Additions will also require an inspection certificate (TDI Form AR-100, Revised 6/93) and a $20 annual administration fee for each amusement ride to be submitted to TDI prior to any operation of the added amusement ride. Additions or deletions shall be filed no later than 10 days after the change.
   3. (C) In the event of policy cancellation by either the insured owner/operator or the insurance company, the company shall furnish notice of such cancellation to TDI as soon as possible, but not later than 10 days prior to cancellation.
   4. (D) The owner/operator will provide to any sponsor, lessor, landowner, or other person responsible for an amusement ride offered for use by the public, a copy of the required insurance policy limits of coverage and the inspection certificate.
   5. (E) If the owner/operator obtains a new amusement ride device from the manufacturer, the new ride shall be added to the insurance policy and a copy of the endorsement submitted to TDI. However, inspection of said ride may be delayed at the discretion of the insurance company until the next cycle of annual inspections are required.

2. (2) Such person must also file the original amusement ride inspection certificate (TDI Form AR-100, Rev. 6/93) certifying with respect to each amusement ride the matters required by the Act. A separate inspection certificate is required for each amusement ride showing the name, serial number, manufacturer of the ride, the inspector's name, the owner/operator, a picture of the ride in an operable state taken at the time of the inspection, and other information as requested. The serial number and name/description of the amusement ride shall coincide with the same information identified on the insurance policy. If major components of the ride, i.e., the crane used in a bungee operation, are interchangeable; the name, serial number, and manufacturer of the inspected component shall be included on the inspection certificate. The inspection certificate is valid for a period of one year, and for expedience in processing, should if possible coincide with the effective date of the insurance policy. The inspection shall be conducted by the insurer or a person with whom the insurer has contracted. The inspector shall provide both the insurer and owner/operator with a written certificate that the inspection has been made and that the amusement ride meets the standards for coverage.

   1. (A) The inspection certificate shall not be submitted by the inspector or insurer until all discrepancies have been resolved and all necessary repair(s) or replacement(s) required for the amusement ride to meet the standards for coverage have been made.
   2. (B) The methods to test the stress and wear related damage of critical parts shall be through the use of the manufacturer's checklist/guidelines, ASTM standards in effect as of August 26, 1993, for amusement rides and devices, or the insurer's criteria, whichever is the most stringent. The inspection shall include a review of the owner/operator's inspection and maintenance program in accordance with ASTM practice or the manufacturer's guidelines/inspection criteria. The inspection shall be conducted with the amusement ride or device in an operable state and include an evaluation of the device for a minimum of one complete operating cycle.
   3. (C) If the amusement ride or device consists of interchangeable major components, such as cranes used in bungee jumping operations, the crane or major component used during the inspection shall be considered an integral part of the amusement ride and the inspection certificate shall include the manufacturer and serial number of the crane or major component inspected with the amusement ride. If the inspected crane or major component is replaced by another unit, a new inspection is required to include the new identification and serial number of the replacement unit.
   4. (D) Any bungee jumping amusement device shall include a safety net or air bag as an integral part of the ride. The safety net or air bag shall be of sufficient size to cover the jump zone. The safety net or air bag shall be rated for the maximum free fall height possible from the jump platform used. If the jump area is over water, the water must be of sufficient depth to provide an adequate safety cushion. The safety net or air bag shall be inspected as an integral part of the amusement ride.
   5. (E) The inspection certificate shall include a schedule of operating locations and dates for the one year duration of the certificate. If the dates and locations are not known at the time of inspection, this information shall be provided by the owner/operator to TDI, Loss Control Regulation Division, a minimum of 10 days in advance of any public operation. Failure to provide a current location itinerary shall constitute adequate grounds for forfeiture of approval to operate in the state and may subject the owner/operator to enforcement action by the attorney general's office or appropriate local authority on behalf of TDI.
   6. (F) The inspection certificate shall be signed by a representative of the insurer.
   7. (G) If the amusement ride or device does not meet the inspection standards, the amusement ride shall not be operated until all necessary repair(s) and/or replacement(s) have been made and the ride reinspected and an inspection certificate issued.
   8. (H) The insurer or safety inspector with whom the insurer has contracted to make the inspection must be professionally qualified to perform the inspection, as set forth in §5.9005 of this title (relating to Qualifications of Personnel Conducting Safety Inspections of Amusement Rides and Devices).

   9. (I) It shall be the responsibility of the amusement ride owner/operator to complete the following prior to any operation of the ride:

      1. (i) request the insurer to certify that the insurance policy and the inspection certificate are true copies by an official of the insurer;
      2. (ii) receive the completed policy and inspection certificate from the insurer if they elect to provide coverage;
      3. (iii) submit a certified copy of the insurance policy and the original inspection certificate to TDI for review. A planning factor of 10 days should be allowed for TDI review and approval prior to any operation of the ride. Errors of omission or commission on either policy or inspection certificate may delay TDI approval;
      4. (iv) immediately after any injury or death involving equipment failure, structural failure, or operator error, the amusement ride/device shall be closed for public use until a new inspection is performed and an inspection certificate is submitted to TDI.
   10. (J) TDI Form AR-100, Revised 6/93, is adopted herein by reference and shall be used for each filing of an amusement ride inspection certificate required by this subchapter. This form (the Amusement Ride Inspection Certificate) is published by the Texas Department of Insurance and copies of the form may be obtained from the Amusement Ride Regulation Section, Loss Control Regulation Division, Mail Code 105-9A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104.
   11. (K) The inspection certificate, insurance policy, and administration fee shall be submitted to TDI, Loss Control Regulation Division, for review. If the inspection certificate and insurance policy meet the requirements of this subchapter, the inspection certificate will be date-stamped and forwarded to the owner/operator with TDI Form AR-101. Form AR-101 will indicate the expiration date of the insurance certificate and shall be affixed to a major component of the amusement ride in a location visible to the ride participants.
   12. (L) Safety services inspectors from the Loss Control Regulation Division of TDI may inspect any amusement ride at any time for compliance with the Insurance Code, Article 21.60, or this subchapter.

3. (3) Renewal of the policy or inspection certificate shall be completed with sufficient lead time to provide these documents to TDI with a minimum of 10 working days to review and approve the documents prior to the expiration of either the policy or the inspection certificate.

   1. (A) In the event of policy cancellation or expiration, the policy shall promptly be replaced or renewed without any lapse in coverage while the amusement ride is offered for use by the public. Any operation without a valid and current insurance policy and current inspection certificate constitutes an illegal operation and is subject to issuance of an injunction to cease operation. The sponsor, lessor, landowner, or other person responsible for an amusement ride offered for use by the public shall be notified of the coverage discontinuance.

   2. (B) A renewal certificate of insurance will be acceptable for the purpose of this paragraph, if the renewal certificate shows:

      1. (i) insurance coverage against liability for injury to persons arising out of the use of the amusement ride/device;
      2. (ii) an amount of insurance of not less than $100,000 per bodily injury occurrence with a $300,000 annual aggregate for Class A amusement rides and an amount of insurance of not less than $1 million per bodily injury occurrence for Class B amusement rides; and
      3. (iii) a policy term that includes the period of time during which the amusement ride will be offered for public use.

Source Note:The provisions of this §5.9004 adopted to be effective November 9, 1984, 9 TexReg 5543; amended to be effective February 24, 1989, 14 TexReg 793; amended to be effective September 29, 1993, 18 TexReg 6315.