36-2237. Required insurance, financial
responsibility or bond; revocation for failure to comply
A. The director shall not issue a certificate of necessity to an ambulance service
unless the service has filed with the department a certificate of insurance or other
evidence of financial responsibility in an amount the director deems necessary to
adequately protect the interests of the public. The liability insurance shall bind the
insurer to pay compensation for injuries to persons and for loss or damage to property
resulting from the negligent operation of the ambulance service.
B. If an application for a certificate of necessity includes any type of
subscription service contract and, in the director's discretion, a surety bond is
necessary pursuant to section 36-2232, the director shall not issue a certificate of
necessity until the applicant has filed a surety bond with the director in the form and
amount determined by him on which bond the applicant is the principal obligor and this
state is the obligee. The director shall approve the bond and the bond must be with a
surety company authorized to transact business in this state as surety on the bond. The
bond must be conditioned on the payment by the applicant to any subscribers that may be
parties to any type of subscription service contract.
C. The director shall fix the total amount of the bond required and the director
may increase or decrease the bond amount subject to criteria adopted by rule and
regulation.
D. The director shall revoke the certificate of necessity of any ambulance service
which fails to comply with this section.
|