8-275. Same; qualifications to operate school. In order for a person to qualify to operate a driving school, such person shall meet the following requirements:

(a) Be of good moral character;

(b) maintain an established place of business to the public;

(c) maintain bodily injury and property damage liability insurance on motor vehicles while used in driving instruction, insuring the liability of the driving school, the driving instructors and any person taking instruction in at least the following amounts: $100,000 for bodily injury to or death of one person in any one accident and, subject to such limit for one person, $200,000 for bodily injury to or death of two or more persons in any one accident and the amount of $20,000 for damage to property of others in any one accident. Evidence of such insurance coverage in the form of a certificate from the insurance carrier shall be filed with the department of revenue and such certificate shall stipulate that the insurance shall not be canceled except upon 10 days' prior written notice to the department. Such insurance shall be written by a company authorized to do business in this state;

(d) provide a continuous surety company bond in the principal sum of $2,500 for the protection of the contractual rights of students in such form as will meet with the approval of the department and written by a company authorized to do business in this state. However, the aggregate liability of the surety for all breaches of the condition of the bond in no event shall exceed the principal sum of $2,500. The surety on any such bond may cancel such bond on giving 30 days' written notice thereof to the department and shall be relieved of liability for any breach of any condition of the bond that occurs after the effective date of cancellation;

(e) have the equipment necessary to the giving of proper instruction in the operation of motor vehicles as prescribed by the department; and

(f) pay to the department an application fee of $25.

History: L. 1965, ch. 72, § 3; L. 1969, ch. 310, § 4; L. 2022, ch. 67, § 6; July 1.