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27 CAR § 170-109. Insurance requirements
27 CAR § 170-109. Insurance requirements.
(a)(1) All businesses required to be licensed by the Arkansas Towing and Recovery Board shall comply with all requirements of this section, including without limitation the requirement to obtain and keep in continuous effect all applicable insurance coverage required by subsection (b) of this section.
(2) Evidence of said insurance shall be filed with the board in the form of a valid certificate of insurance.
(3) The certificate of insurance shall:
(A) Be issued to the board at its current mailing address;
(B) Describe the provisions for notice of cancellation or material change, as stated in the insurance policy; and
(C) Display the physical location of each nonconsensual towing impound lot for which coverage is extended.
(b) The minimum coverage provisions insuring the public from loss or damage that may arise to any person or property by reason of the operation of any vehicle immobilization, towing, repossession, or storage service are as follows:
(1)(A) Each tow vehicle shall have liability insurance covering injury and damage for which the tow business or tow truck owner is liable.
(B) Said coverage shall meet state and federal minimum financial responsibility laws for motor carriers (45 C.F.R. § 387.9);
(2)(A) Each tow vehicle shall have cargo, on-hook, or similar insurance in an amount not less than fifty thousand dollars ($50,000) for light duty, one hundred thousand dollars ($100,000) for medium duty, and two hundred thousand dollars ($200,000) for heavy duty, according to the gross vehicle weight ratings under 27 CAR § 170-107.
(B) For purposes of this section, on-hook, cargo, or any similar term is construed to include coverage for losses and property damage to the vehicle or vehicles being towed, recovered, uprighted, transported, or driven away by the insured or agent of the insured when the insured is liable, whether or not such loss is due to the negligence of the insured or the agent; and
(3) Each nonconsent towing business shall maintain liability insurance in an amount not less than fifty thousand dollars ($50,000) to cover losses from personal injury and property damage incurred in the area in which vehicles impounded or otherwise stored by the business are stored, e.g., garagekeepers.
(c) Each licensee shall be responsible for maintaining on file with the board a valid certificate of insurance reflecting current coverage as outlined in subsection (b) of this section.
(d)(1) Any licensee who fails to meet the requirements of subsection (a), subsection (b), or subsection (c) of this section shall have any applicable license, registration, endorsement, enhancement, or permit immediately suspended by the Director of the Arkansas Towing and Recovery Board on behalf of the board.
(2) The director shall:
(A) Notify the licensee by mail of the suspension; and
(B) Immediately initiate formal hearing procedures.
(e) A vehicle immobilization company is responsible for any damage or liability incurred during the immobilization and subsequent tow and storage of an immobilized vehicle.
(f) A vehicle immobilization company shall maintain liability insurance in an amount not less than fifty thousand dollars ($50,000) to cover any damage liability incurred during the immobilization and subsequent tow and storage of an immobilized vehicle.