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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 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 Occupations Code Chapter 2151, concerning Regulation of Amusement Rides.

  (1) Occupations Code §2151.101, concerning Requirements for Operation, 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 Insurance Code Chapter 981, concerning Surplus Lines Insurance, or have an independently procured policy subject to Insurance Code Chapter 101, concerning Unauthorized Insurance, 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) Occupations Code §2151.1011, concerning Liability Insurance for Certain Amusement Rides, 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 lines 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 to each amusement ride insured by the policy. In the event of additions or deletions of amusement rides during the policy term, such changes must 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/Reinspection), revised effective February 2022) and a $40 fee for each amusement ride to be submitted to TDI before any operation of the added amusement ride. Additions or deletions must be filed not 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 must furnish notice of cancellation to TDI as soon as possible, but not later than 10 days before the 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 must 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) and the $40 fee before operation in Texas.

(c) Inspection/Reinspection Certificate. The owner/operator must also file the original amusement ride inspection certificate (TDI Form AR-100) certifying with respect to each amusement ride the matters required by the Act. A separate inspection certificate is required for each amusement ride that shows the ride's name, serial number, and manufacturer, as well as 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, name, and description of the amusement ride must coincide with the same information identified on the insurance policy. If major components of the ride (for example, the crane used in a bungee operation) are interchangeable, then the name, serial number, and manufacturer of the inspected component must be included on the inspection certificate. The inspection certificate is valid for a period of one year, and for expedience in processing, it should, if possible, coincide with the effective date of the insurance policy. The inspection must be conducted by the insurer or a person with whom the insurer has contracted. The inspector must 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 may 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 Occupations Code §2151.101(a) 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 public as a result of a failure. The inspection must 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 must 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 is considered an integral part of the amusement ride and the inspection certificate must 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 must include a safety net or air bag as an integral part of the ride. The safety net or air bag must be of sufficient size to cover the jump zone. The safety net or air bag must 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 must be inspected as an integral part of the amusement ride.

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

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

  (7) It is the responsibility of the amusement ride owner/operator to complete the following before 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; and

    (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 before any operation of the ride. Errors of omission or commission on either the 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 must be closed for public use until a new inspection is performed and an inspection/reinspection 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 Occupations Code §2151.1526, concerning Prohibition of Mobile Amusement Ride Operation, are met.

Cont'd...

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