Pedicab for hire: proof of insurance or money

(a) The director of budget and fiscal services shall require evidence of financial responsibility from the owner or operator, or both, of the pedicab for hire before issuing a business license and decal to engage in a pedicab for hire. The owner or operator, or both, shall have insurance in force or other evidence of financial responsibility so long as the pedicab is used in business. (b) Such evidence of financial responsibility may be in one of the following two methods. (1) Insurance policy. The director of budget and fiscal services shall retain the original insurance policy issued by a company licensed to do business in the State of Hawaii. The policy shall be duly countersigned by its authorized Hawaii agent complete with all endorsements and attachments or a certified copy thereof. Such policy shall provide for primary public liability insurance coverage in the amount of $100,000 because of bodily injury to or death of one person in any accident, and in the amount of $200,000 because of bodily injury to or death of two or more persons in any one accident, and property damage insurance in the amount of $20,000 because of damage to or destruction of property of others in any one accident for each pedicab for hire. All policies shall be on a fiscal year basis ending on June 30 of each year. Insurance policies on vehicles regulated under this article shall contain a provision that the policy will not be reduced in coverage or canceled without 30 calendar days’ prior written notice to the director of budget and fiscal services by the authorized Hawaii agent for the insurance company. (2) Legal tender or other securities. A deposit with the director of budget and fiscal services of legal tender, cashier’s check, bank draft, irrevocable letter of credit, certified check, bond, or other security determined to be satisfactory by the director of budget and fiscal services in the total amount of $200,000. Such security shall be held by and made payable to the director of budget and fiscal services and shall not expire for a period of 2 years after the termination of the business license for the secured pedicab carrying passengers or property for hire. The licensee shall not receive interest for such deposit. Upon expiration of such two-year period, the licensee shall be refunded the deposit or balance thereof, provided no suit against the proceeds of such security has been commenced during such period. The conditions of liability for the security in this subsection shall be the same as specified for policy of insurance contained hereinabove. The director of budget and fiscal services shall satisfy from the proceeds of such security any judgment against the licensee or operator, or both, arising from the operation of a pedicab for hire. Neither the city, its officers, employees, agents, or appointees shall be liable to the licensee or operator, or both, for any payments made pursuant to such judgment. (3) Revocation of business license and license decal. If, at any time after the issuance of the business license and license decal: (A) The required insurance coverage is reduced or canceled and the licensee fails to immediately replace such coverage with the securities described in subdivision (2); or (B) The security deposited with the director of budget and fiscal services falls below the required amount as a result of claims satisfied against the licensee and the licensee fails to immediately replenish the proceeds of such security to the required amount; the director of budget and fiscal services shall revoke or suspend the business license and license decal. Such revocation shall be done in accordance with § 36-5.13 (a). )