§ 39-12-27. Security for protection of the public.
No certificate or permit shall be issued to a motor carrier or remain in force, unless
the carrier shall have furnished the administrator with evidence of insured financial
responsibility. Each motor carrier shall satisfy the requirements by furnishing the
administrator with proof of the carrier's ability to meet any and all legally established
claim or claims for damages by reason of personal injury to, or the death of, any
one person in an amount of at least two hundred and fifty thousand dollars ($250,000),
or by reason of personal injuries to, or the death of, all persons injured or killed
in any one accident of five hundred thousand dollars ($500,000) (subject to a maximum
of two hundred and fifty thousand dollars ($250,000) for bodily injuries to or the
death of one person), and for damages to property (excluding cargo) in the amount
of at least twenty-five thousand dollars ($25,000). A filing fee of ten dollars ($10.00)
must accompany each insurance filing. All revenues received under this section shall
be deposited as general revenues. No common or contract carrier by motor vehicle shall
engage in intrastate commerce, nor shall any certificate or permit be issued to the
carrier or remain in force, unless and until there shall be filed with the administrator
evidence of insured financial responsibility by the carriers to meet any and all legally
established claim or claims for loss or damage to all property belonging to the shipper
or consignee and coming into possession of the carriers in connection with their motor
carrier transportation service in an amount of at least twenty-five thousand dollars
($25,000); provided, however, that the requirements of this section shall not apply
in connection with the transportation of commodities declared by the administrator,
after notice and hearing, to be exempt from cargo insurance requirements. Each motor
carrier required by the provisions of this chapter to furnish evidence of insured
financial responsibility shall satisfy such requirements by filing with the administrator:
(1) A certificate of insurance issued by an insurance company authorized to transact business
in this state, showing that the motor carrier has a policy of insurance in force insuring
the carrier against public liability, property damage, and damage or loss to cargo,
in at least the minimum amounts herein prescribed; or
(2) A certificate on blanks furnished by the administrator and issued by the general treasurer
that the motor carrier has filed with the general treasurer a bond in the amount of
one hundred thousand dollars ($100,000), issued by a surety company authorized to
transact business in Rhode Island and conditioned upon payment of any sum up to and
including the maximum amounts required in this section in the satisfaction of any
final judgment rendered as the result of any claim, or claims, for damages against
the motor carrier. The administrator will give consideration to and will approve the
application of a motor carrier to qualify as a self-insurer in lieu of the insurance
prescribed in this section, if the carrier furnishes a true and accurate statement
of its financial condition and other evidence as will establish to the satisfaction
of the administrator the ability of the motor carrier to satisfy its obligations for
liability and bodily injury or death and liability for the property damage in the
minimum amounts prescribed therein without affecting the stability or permanency of
the business of the motor carriers. All certificates of insurance, surety bonds, and
other securities and agreements filed with the administrator must show the coverage
effective continuously until canceled. Certificates of insurance, surety bonds, and
other securities and agreements shall not be canceled or withdrawn until after thirty
(30) days' notice in writing by the insurance company, surety or sureties, motor carrier,
or other party thereto, as the case may be, has first been given to the administrator
at his or her office in Providence, which period of time shall commence to run from
the date the notice is actually received at the office of the administrator. However,
the surety bonds, certificates of insurance, and other securities and agreements may
be canceled prior to the expiration of the thirty (30) days, if on or before the date
notice of cancellation is received at the office of the administrator, a replacement
filing acceptable to the administrator shall have been received, the replacement being
effective on or before the effective date of the cancellation. No cancellation may
become effective before the date of receipt of the notice by the administrator.