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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 5PROPERTY AND CASUALTY INSURANCE
SUBCHAPTER JRULES TO IMPLEMENT THE AMUSEMENT RIDE SAFETY INSPECTION AND INSURANCE ACT
RULE §5.9004Amusement Ride Operation Requirements

(a) Operational Requirements. An owner/operator may not operate an amusement ride unless the owner/operator has satisfied and is continuing to satisfy the requirements in subsections (a) - (f) of this section.

(b) Insurance. The owner/operator must file with the Texas Department of Insurance (TDI) the insurance policy or a photocopy of the insurance policy certifying that the policy is a true copy of the insurance policy provided to the insured as required by the Act, Chapter 2151.

  (1) The Act, §2151.101, requires that any person who operates an amusement ride must have currently in force a combined single limit or split limit insurance policy written by an insurance company authorized to do business in this state or by a surplus lines insurer, as defined by the Insurance Code, Chapter 981, or have an independently procured policy subject to the Insurance Code, Chapter 101, insuring the owner or operator against liability for injury to persons arising out of use of the amusement ride in an amount of not less than:

    (A) for Class A amusement rides:

      (i) $100,000 bodily injury and $50,000 property damage per occurrence with a $300,000 annual aggregate; or

      (ii) $150,000 per occurrence combined single limit with a $300,000 annual aggregate;

    (B) for Class B amusement rides, except for Class B motorized train amusement rides:

      (i) $1,000,000 bodily injury and $500,000 property damage per occurrence; or

      (ii) $1,500,000 per occurrence combined single limit.

  (2) The Act, §2151.1011, requires that any person who operates a Class B motorized train amusement ride must have an insurance policy currently in effect written by an insurance company authorized to conduct business in this state or by a surplus line insurer, as defined by Insurance Code Chapter 981, or have an independently procured policy subject to Insurance Code Chapter 101, insuring the owner or operator against liability for injury to persons arising out of the use of the amusement ride in an amount of not less than $1 million in aggregate for all liability claims occurring in a policy year.

  (3) A local government may satisfy the insurance requirements prescribed by paragraphs (1) and (2) of this subsection by obtaining liability coverage through an interlocal agreement.

  (4) The policy or certified photocopy of the policy must be complete, including all applicable coverage forms and endorsements. Certificates of insurance will not be acceptable for this purpose.

  (5) The policy must contain a schedule listing by name and serial number if applicable of each amusement ride insured by the policy. In the event of additions or deletions of amusement rides during the policy term, such changes shall be shown on a change endorsement, a copy of which must be submitted to TDI. Additions will also require an inspection certificate (TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005) and a $40 fee for each amusement ride to be submitted to TDI prior to any operation of the added amusement ride. Additions or deletions shall be filed no later than 10 days after the change.

  (6) In the event of policy cancellation by either the insured owner/operator or the insurance company, the company shall furnish notice of such cancellation to TDI as soon as possible, but not later than 10 days prior to cancellation.

  (7) The owner/operator will provide to any sponsor, lessor, landowner, or other person responsible for an amusement ride offered for use by the public, a photocopy of the inspection certificate and the insurance policy required by this section.

  (8) If the owner/operator obtains an additional amusement ride device, the ride shall be added to the insurance policy and a copy of the endorsement submitted to TDI along with the required inspection certificate (TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005) and the $40 fee prior to operation in Texas.

(c) Inspection/Reinspection Certificate. The owner/operator must also file the original amusement ride inspection certificate (TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005) certifying with respect to each amusement ride the matters required by the Act. A separate inspection certificate is required for each amusement ride showing the name, serial number, manufacturer of the ride, the inspector's name, the owner/operator, a picture of the ride in an operable state taken at the time of the inspection, and other information as requested. The serial number and name/description of the amusement ride shall coincide with the same information identified on the insurance policy. If major components of the ride, i.e., the crane used in a bungee operation, are interchangeable, the name, serial number, and manufacturer of the inspected component shall be included on the inspection certificate. The inspection certificate is valid for a period of one year, and for expedience in processing, should if possible coincide with the effective date of the insurance policy. The inspection shall be conducted by the insurer or a person with whom the insurer has contracted. The inspector shall provide both the insurer and owner/operator with a written certificate that the inspection has been made and that the amusement ride meets the standards for coverage.

  (1) The inspection certificate shall not be submitted to TDI until all discrepancies have been resolved and all necessary repair(s) or replacement(s) required for the amusement ride to meet the standards for coverage have been made.

  (2) The inspection required by §2151.101(a) of the Act must include a method to test the stress- and wear-related damage of critical parts of a ride that the manufacturer of the amusement ride determines are reasonably subject to failure as the result of stress and wear and could cause injury to a member of the general public as a result of a failure. The inspection shall include a review of the owner/operator's daily inspection records and inspection and maintenance program in accordance with ASTM practice or the manufacturer's guidelines/inspection criteria. The inspection shall be conducted with the amusement ride or device in an operable state and include an evaluation of the device for a minimum of one complete operating cycle.

  (3) If the amusement ride or device consists of interchangeable major components, such as cranes used in bungee jumping operations, the crane or major component used during the inspection shall be considered an integral part of the amusement ride and the inspection certificate shall include the manufacturer and serial number of the crane or major component inspected with the amusement ride. If the inspected crane or major component is replaced by another unit, a new inspection is required to include the new identification and serial number of the replacement unit.

  (4) Any bungee jumping amusement device shall include a safety net or air bag as an integral part of the ride. The safety net or air bag shall be of sufficient size to cover the jump zone. The safety net or air bag shall be rated for the maximum free fall height possible from the jump platform used. If the jump area is over water, the water must be of sufficient depth to provide an adequate safety cushion. The safety net or air bag shall be inspected as an integral part of the amusement ride.

  (5) The inspection certificate shall be signed by a representative of the insurer.

  (6) If the amusement ride or device does not meet the inspection standards, the amusement ride shall not be operated until all necessary repair(s) and/or replacement(s) have been made and the ride reinspected and an inspection/re-inspection certificate issued.

  (7) It shall be the responsibility of the amusement ride owner/operator to complete the following prior to any operation of the ride:

    (A) to request the insurer to certify that the insurance policy and the inspection certificate are true copies by an official of the insurer;

    (B) to receive the completed policy and inspection certificate from the insurer if they elect to provide coverage;

    (C) to submit a certified copy of the insurance policy, the original inspection certificate, and the fee to TDI for review. A planning factor of 10 days should be allowed for TDI review and approval prior to any operation of the ride. Errors of omission or commission on either policy or inspection certificate may delay TDI approval.

  (8) Immediately after any injury or death involving equipment failure, structural failure, or operator error, the amusement ride/device shall be closed for public use until a new inspection is performed and an inspection/re-inspection certificate is submitted to TDI.

  (9) In addition to the requirements of paragraphs (7) and (8) of this subsection, a mobile amusement ride on which a death occurs may not be operated until the requirements of §2151.1526 of the Act are met.

  (10) In addition to the requirements of this subsection, an amusement ride whose operation has been prohibited by a municipal, county, or state law enforcement official pursuant to §2151.152 or §2151.1525 of the Act may not be operated until the requirements of that section are met. Any on-site corrections that are made pursuant to the requirements of §2151.1525 of the Act must be presented to the appropriate municipal, county, or state law enforcement official.

  (11) TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005, is adopted by reference and shall be used for each filing of an amusement ride inspection certificate required by this section. This form (the Amusement Ride Certificate of Inspection/Re-Inspection) is published by the Texas Department of Insurance and copies of the form may be obtained from the Loss Control Regulation Division, Mail Code 103-9A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104.

  (12) The inspection/re-inspection certificate, insurance policy, and fee shall be submitted to TDI, Loss Control Regulation Division, for review. If the inspection/re-inspection certificate and insurance policy meet the requirements of this subchapter, the inspection/re-inspection certificate will be date-stamped and forwarded to the owner/operator with TDI Form AR-101 (Texas Amusement Ride Compliance Sticker), Effective May, 2000 and adopted herein by reference. TDI Form AR-101 will indicate the expiration date of the inspection certificate and shall be affixed to a major component of the amusement ride in a location visible to the ride participants.

  (13) The records of the inspections required by this section shall be made available for inspection by any municipal, county, or state law enforcement official at the location at which the amusement ride is operated.

(d) Insurance Policy and Inspection Certificate Renewal. Renewal of the policy or inspection certificate shall be completed with sufficient lead time to provide these documents to TDI with a minimum of 10 working days to review and approve the documents prior to the expiration of either the policy or the inspection certificate.

  (1) In the event of policy cancellation or expiration, the policy shall promptly be replaced or renewed without any lapse in coverage while the amusement ride is offered for use by the public. Any operation without a valid and current insurance policy and current inspection certificate constitutes an illegal operation and is subject to the enforcement provisions and penalties pursuant to §§2151.151, 2151.152, 2151.1525, 2151.1526, and 2151.153 of the Act. The sponsor, lessor, landowner, or other person responsible for an amusement ride offered for use by the public shall be notified by the owner/operator of the coverage discontinuance.

  (2) A renewal certificate of insurance will be acceptable for the purpose of this subsection, if the renewal certificate shows:

    (A) insurance coverage insuring the owner or operator against liability arising out of the use of the amusement ride/device in an amount of not less than:

      (i) for Class A amusement rides:

        (I) $100,000 bodily injury and $50,000 property damage per occurrence with a $300,000 annual aggregate; or

        (II) $150,000 per occurrence combined single limit with a $300,000 annual aggregate;

      (ii) for Class B amusement rides, except for Class B motorized train amusement rides:

        (I) $1,000,000 bodily injury and $500,000 property damage per occurrence; or

        (II) $1,500,000 per occurrence combined single limit;

      (iii) for Class B motorized train amusement rides, $1,000,000 in aggregate for all liability claims occurring in a policy year; and

    (B) a policy term that includes the period of time during which the amusement ride will be offered for public use.

(e) Daily Inspections. In addition to the inspection required under this section, the owner/operator who operates a mobile amusement ride must perform and record daily inspections of the mobile amusement ride including safety restraints on each mobile amusement ride.

  (1) Records of the daily inspections must be available for inspection by any municipal, county, or state law enforcement official at the location at which the amusement ride is operated, and the records must be maintained with the amusement ride for a period of one year.

  (2) The daily inspection record must include an inspection of the following:

    (A) safety belts, bars, locks and other passenger restraints;

    (B) all automatic and manual safety devices;

    (C) signal systems, brakes and control devices;

    (D) safety pins and keys;

Cont'd...

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