§ 23-5. Same—Additional; release of assurer; liability of parties; suits for recovery of damages.

(a)

If the city council shall determine, after hearing duly had after three (3) days' notice given a licensee, that any assurance given by any licensee has become impaired so as to afford less protection to the public than when originally filed, it may require a new or additional bond or public liability policy or additional securities so as to bring the protection of the assurance to its original amount, and the licensee or the person owning or operating any such motor vehicle shall within five (5) days after receiving written notice of the requirement, provide the required new or additional bond, public liability policy or additional securities, failing which, the license of the licensee shall automatically terminate.

(b)

If any surety or insurer may desire to be released from any insurance policy or surety bond, he may give written notice of the desire to the council at least ten (10) days before he desires his liability released, and the council shall thereupon give written notice by personal delivery or by mail to any such licensee, and demand that licensee furnish new assurance by the expiration of the ten-day period above provided for, and shall discharge the first surety or insurer from any liability which shall accrue after the time of approval of the new bond or policy that the licensee may file or shall discharge the first surety or insurer after the expiration of the ten-day period. If any bond or policy be so cancelled upon the request of the surety or insurer and no new bond or insurance policy is filed by the licensee before the cancellation of the original assurance, then the license to operate taxicabs granted to the licensee shall be automatically revoked.

(c)

Neither the city nor any officer thereof shall be held liable for the pecuniary responsibility of solvency of any surety or insurer, or in any manner become liable for any sum on account of any such clam or act or omission relating to any such motor vehicle, nor shall the liability of any person owning or operating any such motor vehicle be in any manner limited or changed in connection with this chapter or the license or assurance, but the judgment creditors having causes of action secured thereby shall be authorized to sue directly on the bond or policy of insurance without impleading the city; and all persons known to any surety or insurer to have been injured or damaged in the same accident and claim damages thereunder, may be made parties without priority of claim on payment in any suit had or instituted on account of such matters.

(Code 1970, § 15-5)