36-2237. Required insurance, financial responsibility or bond; revocation for failure to comply
252 words·~1 min read·
/az/title-36/36-2237A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The director shall not issue a certificate of necessity to an ambulance service unless the service has filed with the department a certificate of insurance or other evidence of financial responsibility in an amount the director deems necessary to adequately protect the interests of the public. The liability insurance shall bind the insurer to pay compensation for injuries to persons and for loss or damage to property resulting from the negligent operation of the ambulance service.
B. If an application for a certificate of necessity includes any type of subscription service contract and, in the director's discretion, a surety bond is necessary pursuant to section 36-2232, the director shall not issue a certificate of necessity until the applicant has filed a surety bond with the director in the form and amount determined by him on which bond the applicant is the principal obligor and this state is the obligee. The director shall approve the bond and the bond must be with a surety company authorized to transact business in this state as surety on the bond.
The bond must be conditioned on the payment by the applicant to any subscribers that may be parties to any type of subscription service contract.
C. The director shall fix the total amount of the bond required and the director may increase or decrease the bond amount subject to criteria adopted by rule and regulation.
D. The director shall revoke the certificate of necessity of any ambulance service which fails to comply with this section.