(a) No interstate or intrastate permit shall be issued by the department until such carrier shall have filed with the department, and the department shall have approved, a policy of liability insurance or bond and also, in the case of intrastate common carriers, a policy of cargo or passenger insurance in some reliable insurance company or association or other insurer satisfactory to the department and authorized to transact insurance business in this state, in such amount and such forms and upon such conditions as the department may deem necessary to adequately protect the interests of the public in the use of the public highway and with due regard to the number of persons and the amount of property to be transported, which liability or cargo insurance shall bind the obligors thereunder to make compensation for injury to persons, and loss of or damage to property resulting from the negligent operation by such motor carrier or contract hauler. No other or additional policies of insurance, bonds, or licenses than those prescribed herein shall be required of any motor carrier or contract hauler to which this chapter applies by any city, town or other subdivision of this state; provided, that this section shall not be so construed as to interfere with the right of any county, city or other civil subdivision of this state, to levy and collect any lawful tax to which such motor carrier or contract hauler is liable under the general revenue laws of this state within such county, state or other civil subdivision.
(b) Any operator of a whitewater rafting outfitting company or other paddle and floating water activity operator who provides services to consumers on intrastate waterways and who transports customers distances not to exceed twenty-five (25) miles by motor carrier shall have filed with the department, and the department shall have approved, a policy of liability insurance in the amount of not less than one million dollars ($1,000,000). Such policy of insurance shall meet the requirements of subsection (a) and shall bind the obligors thereunder to make compensation for injury to persons and for loss of or damage to property resulting from the negligent operation by such operator.
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