Section 38-07-02-06 - Insurance and safety1. The licensee shall file with the superintendent evidence of liability insurance obtained from a company authorized to do business in the state of North Dakota. Proof of insurance is required for each vehicle used for driver training in the amount of: a. At least one hundred thousand dollars because of bodily injury to or death of any one person in any one accident.b. At least three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident.c. At least twenty-five thousand dollars because of damage to or destruction of property of others in any one accident.d. At least thirty thousand dollars for medical expenses regardless of liability.2. The licensee shall furnish evidence of such coverage to the superintendent stipulating that such insurance will not be canceled or terminated except upon ten days' prior written notice to the superintendent.3. In the event such insurance is canceled or terminated, the school license certificate shall terminate automatically. All vehicles used in the operation of the school may not thereafter be used for driver training school purposes until such school obtains adequate insurance coverage and said license is reenacted. School certificates terminated under the provision of this section must be surrendered to the superintendent within a period of ten days.4. The commercial driver training school owner or operator shall secure and submit with the application for license a continuous surety company bond in the principal sum of two thousand five hundred dollars for class D and M instruction or a continous surety company bond in the principal sum of five thousand dollars for commercial motor vehicle driver's license instruction for the protection of the contractual rights of students, undertaken by a company authorized to do business in the state of North Dakota. The concerned surety company may cancel said bond upon giving thirty days' written notice thereof to the superintendent. The surety company must be released of all liability for any breach of any condition of the bond occurring after the effective date of the cancellation.N.D. Admin Code 38-07-02-06
Effective December 1, 1988; amended effective July 1, 2013.General Authority: NDCC 39-25-02
Law Implemented: NDCC 39-25-03