Arkansas Code of 1987 (2023)
Title 27 - TRANSPORTATION (§§ 27-1-101 — 27-117-105)
Subtitle 2 - MOTOR VEHICLE REGISTRATION AND LICENSING (§§ 27-13-101 — 27-25-113)
Chapter 14 - UNIFORM MOTOR VEHICLE ADMINISTRATION, CERTIFICATE OF TITLE, AND ANTITHEFT ACT (§§ 27-14-101 — 27-14-2401)
Subchapter 15 - TAXICABS (§§ 27-14-1501 — 27-14-1503)
Section 27-14-1501 - Liability insurance prerequisite to licensing

Universal Citation:
AR Code § 27-14-1501 (2023)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

  • (a)
    • (1) A license shall not be issued for any taxicab, automobile, or similar vehicle used for hire, nor shall these vehicles be operated or used in and upon the streets, roads, and highways of the State of Arkansas, within or without the corporate limits of any city or village, for the purpose of carrying passengers for hire unless there has been filed with the Secretary of the Department of Finance and Administration a liability contract of insurance or certificates of insurance issued to the owner of the vehicle.
    • (2) The liability contract of insurance or certificate of insurance described in subdivision (a)(1) of this section shall be:
      • (A) Substantially in the form of the standard automobile liability insurance policy in customary use;
      • (B) Approved by the secretary; and
      • (C) Issued by an insurance company licensed to do business in the State of Arkansas.
  • (b) The policy under subsection (a) of this section shall secure payment according to the provisions of subsection (a) of this section to any person except employees or joint venturers of an owner for personal injuries to that person and for any damage to property except property owned by, rented to, leased to, in charge of, or transported by the owner, other than baggage of passengers, caused by the operation of a taxicab, automobile, or similar vehicle used for hire for at least the minimum amounts prescribed for liability insurance under the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.
  • (c)
    • (1) In lieu of the policy of insurance, the owner may file a bond by some solvent surety company licensed to do business in this state.
    • (2)
      • (A) The bond shall be in the form approved by the secretary and shall be conditioned for the payment of property damage and personal injuries and shall be in an amount no less than two hundred fifty thousand dollars ($250,000) for all claims for the operator's fleet, and uninsured motorist coverage shall not be required of the operators.
      • (B) If the bond becomes insufficient because of claims or any other reason, the operator shall have seven (7) days to restore it to the full amount or lose its bonded status.
  • (d)
    • (1) A policy of insurance shall not be cancelled by the licensee or by the insurance carrier unless written notice of the cancellation has been mailed to the secretary.
    • (2) The written notice shall state the exact time and date of cancellation no less than seven (7) days from the date of mailing.
    • (3) The mailing of notice shall be sufficient proof of notice, and the effective date of cancellation stated in the notice shall become the end of the policy period.
  • (e) An individual or corporation engaged in the operation of a taxicab, automobile, or similar vehicle used for hire as a common carrier of passengers for hire that violates this section or that procures, aids, or abets an individual or corporation in violating this section shall, upon conviction, be guilty of a Class B misdemeanor.
  • (f)
    • (1) Notwithstanding any other provision of state law, a municipality in a county with a population in excess of two hundred thousand (200,000) that requires a franchise for taxicabs to operate within the corporate limits of the municipality may impose any insurance requirements desired by the municipality that shall be applicable to a taxicab that operates within the municipality.
    • (2)
      • (A) If a municipality imposes additional insurance requirements on its taxicabs as described under subdivision (f)(1) of this section, it shall be unlawful for a taxicab operator to operate a taxicab within the corporate limits of that municipality without meeting the additional insurance requirements.
      • (B) A person found guilty or who pleads guilty or nolo contendere to a charge of violating this subdivision (f)(2) shall be subject to a:
        • (i) Fine of not less than five hundred dollars ($500) and not to exceed one thousand dollars ($1,000); and
        • (ii) Sentence that shall not exceed ninety (90) days for a Class B misdemeanor.
    • (3) In addition to penalties that may be assessed against the taxicab operator, if the taxicab owner is a different person or entity, the owner shall be subject to a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
    • (4) A municipality may, by ordinance, declare that an uninsured taxicab shall be subject to seizure and that a seized taxicab shall not be released until insurance is in place.
  • (g) This subchapter does not apply to an entity providing services under the Transportation Network Company Services Act, § 23-13-701 et seq.

Amended by Act 2023, No. 804,§ 1, eff. 1/1/2024.

Amended by Act 2019, No. 910,§ 4595, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4594, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 4593, eff. 7/1/2019.

Acts 1949, No. 485, §§ 1-3; 1961, No. 473, § 1; 1985, No. 969, § 1; A.S.A. 1947, §§ 75-203 -- 75-205; Acts 1989, No. 689, § 1; 1997, No. 1223, § 1; 2003, No. 1152, §§ 1, 2.


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