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You are here: Home . rules . 2007 . 0215-059

SUBCHAPTER J. RULES TO IMPLEMENT THE AMUSEMENT RIDE SAFETY INSPECTION AND INSURANCE ACT

28 TAC §§5.9001, 5.9002, and 5.9004

1. INTRODUCTION. The Commissioner of Insurance adopts amendments to §§5.9001, 5.9002, and 5.9004, concerning the Amusement Ride Safety Inspection and Insurance Act, Occupations Code §§2151.001 - 2151.153. The amendments are adopted without changes to the proposed text published in the November 30, 2007 issue of the Texas Register (32 TexReg 8667).

2. REASONED JUSTIFICATION. The adopted amendments are necessary to implement HB 1070, enacted by the 80th Legislature, Regular Session, effective June 15, 2007. Prior to the enactment of HB 1070, there were only two classes of amusement rides regulated under the Occupations Code: Class A rides primarily for children under thirteen at a fixed location, and Class B rides defined as all amusement rides other than Class A rides. This meant that low-risk Class B amusement rides were regulated for purposes of liability insurance in the same class as higher risk rides, like roller coasters. Thus, the owners and operators of low-risk Class B rides were required to purchase the same high-cost insurance coverage as owners and operators of the high-speed or high-risk amusement rides.

HB 1070 establishes new minimum liability insurance requirements for a certain defined Class B amusement ride that operates similar to a five-mile-an-hour train and authorizes a local government to obtain liability insurance required under existing §2151.101 or under new §2151.1011 of the Occupations Code through an interlocal agreement. Specifically, HB 1070 amends the Occupations Code §2151.101(a) to exclude a Class B amusement ride that meets the definition in new §2151.1011 from the §2151.101 minimum insurance requirements. The §2151.101 minimum insurance requirements for a Class B amusement ride are that an owner/operator must maintain a liability insurance policy for each ride in the amount of not less than $1,000,000 bodily injury and $500,000 property damage per occurrence or not less than $1,500,000 per occurrence combined single limit. New §2151.1011 requires certain defined Class B amusement rides to obtain liability insurance in the amount of not less than $1 million in aggregate for all liability claims occurring in a policy year. New §2151.101 only applies to a Class B amusement ride that consists of a motorized vehicle that tows one or more separate non-rotating passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed course, as long as the vehicle does not run on an elevated track, nor travel under its own power more than five miles per hour, has safety belts for all passengers, and passenger seating areas enclosed by guardrails or doors.

HB 1070 also adds subsection (c) to the Occupations Code §2151.101 to provide that a local government may meet the §2151.101 insurance requirements for amusement rides through an interlocal agreement. New §2151.1011 also authorizes a local government to satisfy the new §2151.1011 insurance requirements for a Class B motorized train amusement ride by obtaining liability coverage through an interlocal agreement.

The adopted amendments to §5.9001(4) and (5) are necessary to update an obsolete statutory citation. The Insurance Code Article 1.14-2, referenced in both paragraphs, was re-adopted without substantive change as Chapter 981 in the nonsubstantive Insurance Code revision, Acts 2001, 77th Legislature, Chapter 1419, §1, effective June 1, 2003. Adopted amendments to §5.9002 are necessary to add three new definitions: Class B motorized train amusement ride, interlocal agreement, and local government. In new §5.9002(6), a Class B motorized train amusement ride is defined as a Class B amusement ride that consists of a motorized vehicle that tows one or more separate passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed track or course, does not travel under its own power in excess of five miles per hour, has safety belts for all passengers, does not run on an elevated track, has passenger seating areas enclosed by guardrails or doors, and does not have passenger cars that rotate independently from the motorized vehicle. This definition conforms to the definition enacted in the Occupations Code §2151.1011 for rides that qualify for the exemption from the insurance requirements of the Occupations Code §2151.101 for Class B amusement rides. Existing §5.9002(6) - §5.9002(8) are renumbered because of the addition of the new definition. In adopted new §5.9002(10), the definition for an interlocal agreement references the definition for interlocal contract in the Government Code §791.003(2), which is defined as a contract or agreement under the Government Code, Chapter 791, the Texas Interlocal Cooperation Act. In new §5.9002(11), the term l ocal government is defined consistent with the Texas Interlocal Cooperation Act, Government Code §791.003(4). The remaining definitions in §5.9002 are renumbered because of the addition of the two new definitions. Adopted §5.9004 re-formats the rule structure for purposes of clarity in amending the existing rule to include the HB 1070 amendments. The re-formatting of the rule structure results in designation of existing paragraphs as subsections, existing subparagraphs as paragraphs, and existing clauses as subparagraphs. Minor, non-substantive amendments are proposed for purposes of organization and readability, including the addition of subheadings. Punctuation has been changed where necessary. Other minor, nonsubstantive amendments include: (i) revision of citations to the Insurance Code to conform to agency style; (ii) correction of verb tense; (iii) correction of errors and inconsistency in capitalization; and (iv) correction of internal cross-references. None of the re-formatting or editorial revisions results in any substantive change to §5.9004. In redesignated §5.9004(b)(1), language relating to "insuring the owner or operator against liability for injury to persons arising out of use of the amusement ride" is deleted for purposes of accuracy and clarity. In redesignated §5.9004(d)(2)(A), language relating to "for injury to persons" is deleted for the same purposes. New §5.9004(b)(1)(B) exempts a Class B motorized train amusement ride from the Occupations Code §2151.101 insurance requirements for a Class B amusement ride. New §5.9004(b)(2) is necessary to require, consistent with new §2151.1011 of the Occupations Code, that a Class B motorized train amusement ride maintain liability insurance of not less than $1 million in aggregate for all liability claims occurring in a policy year. New §5.9004(b)(3) provides that a local government that owns or operates an amusement ride may satisfy the prescribed insurance requirements through an interlocal agreement. This paragraph is added to implement the Occupations Code §§2151.101(c) and 2151.1011(c) enacted by HB 1070. Redesignated §5.9004(d) governs the yearly renewal of the inspection certificate for an amusement ride. Under the existing rules, in the process of renewing an inspection certificate for an amusement ride, an owner or operator must show proof of continuing liability insurance for the ride. This requirement may be satisfied by the submission of a certificate of insurance reflecting insurance in the required amount for the particular classification of the ride. The necessary amount of insurance to be shown on the certificate is specified in redesignated §5.9004(d)(2)(A)(i) and (ii). Therefore, new §5.9004(d)(2)(A)(iii) is added to include the new §2151.1011 liability insurance requirements for Class B motorized train amusement rides.

3. HOW THE SECTIONS WILL FUNCTION. The amendments to §5.9001 are non-substantive, and the purpose of the subchapter remains to aid in the implementation of the Amusement Ride Safety Inspection and Insurance Act. The scope of the subchapter remains as provided in paragraphs (1) - (7) of §5.9001.

Amendments to §5.9002 add three new definitions necessary for implementing the legislative amendments to the Occupations Code §§2151.001 - 2151.153: Class B motorized train amusement ride, interlocal agreement, and local government. All existing definitions of §5.9002 are retained, but paragraphs (6) - (11) are renumbered because of the addition of the three new definitions. In new §5.9002(6), a Class B motorized train amusement ride is defined as a Class B amusement ride that consists of a motorized vehicle that tows one or more separate passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed track or course, does not travel under its own power in excess of five miles per hour, has safety belts for all passengers, does not run on an elevated track, has passenger seating areas enclosed by guardrails or doors, and does not have passenger cars that rotate independently from the motorized vehicle. New §5.9002(10) defines an interlocal agreement as a contract or agreement under the Government Code, Chapter 791, the Texas Interlocal Cooperation Act. In new §5.9002(11), the term l ocal government is defined as a county, municipality, or special district; a junior college district, or other political subdivision of this state or another state; a local government corporation created under Transportation Code Subchapter D, Chapter 431; a political subdivision corporation created under the Local Government Code Chapter 304; a local workforce development board created under the Government Code §2308.253; or a combination of two or more of such entities, consistent with the Texas Interlocal Cooperation Act, Government Code §791.003(4). Section 5.9004 is re-formatted for purposes of clarity in amending the existing rule to include the HB 1070 amendments. The re-formatting of the rule structure results in designation of existing paragraphs as subsections, existing subparagraphs as paragraphs, and existing clauses as subparagraphs. None of the re-formatting results in any substantive change to §5.9004. New §5.9004(b)(1)(B) exempts a Class B motorized train amusement ride from the Occupations Code §2151.101 insurance requirements for a Class B amusement ride. New §5.9004(b)(2) requires that a Class B motorized train amusement ride maintain liability insurance of not less than $1 million in aggregate for all liability claims occurring in a policy year.

New §5.9004(b)(3) provides that a local government that owns or operates an amusement ride may satisfy the prescribed insurance requirements through an interlocal agreement.

Redesignated §5.9004(d)(2)(A)(i) and (ii) specify the necessary amount of liability insurance to be shown on the certificate submitted to the Department for the yearly renewal of the inspection certificate for Class A and Class B amusement rides. New §5.9004(d)(2)(A)(iii) specifies the necessary amount of liability insurance to be shown on the certificate submitted to the Department for the yearly renewal of the inspection certificate for a Class B motorized train amusement ride.

4. SUMMARY OF COMMENTS. The Department did not receive any comments on the published proposal.

5. STATUTORY AUTHORITY. The amendments are adopted under the Occupations Code §§2151.101, 2151.1011, and 2151.051, and the Insurance Code §36.001. The Occupations Code §2151.101 exempts a Class B amusement ride that meets the definition in the Occupations Code §2151.1011 from the §2151.101 minimum insurance requirements for Class B amusement rides. The Occupations Code §2151.1011 establishes new minimum liability insurance requirements for a certain statutorily defined Class B amusement ride that operates similar to a five-mile-an-hour train. The Occupations Code §§2151.101 and 2151.1011 authorize a local government to satisfy liability insurance requirements for amusement rides through interlocal agreements. The Occupations Code §2151.051 provides that the Commissioner of Insurance shall administer and enforce Chapter 2151 of the Occupations Code. The Insurance Code §36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

6. TEXT.

§5.9001. Purpose and Scope. It is the purpose of this subchapter to aid in implementing the Amusement Ride Safety Inspection and Insurance Act (hereinafter referred to as the Act). The provisions of this subchapter are in addition to, and not in lieu of, the provisions of the Act (Title 13, Occupations Code, Chapter 2151). This subchapter applies to:

(1) any amusement ride as defined in the Act, §2151.002;

(2) the owner and operator of any amusement ride;

(3) any agent or representative of the owner or operator of any amusement ride;

(4) any insurer, including any surplus lines insurer, as defined in the Insurance Code Chapter 981 and any other nonadmitted company;

(5) any agent or representative of any insurer, including surplus lines agents, as defined in the Insurance Code Chapter 981 and agents of any nonadmitted company;

(6) any independently procured policy subject to the Insurance Code, §101.001 et seq., providing bodily injury liability insurance for amusement rides; and

(7) any inspector working as an independent contractor or as an employee of an insurance carrier performing amusement ride inspections on behalf of, or under contract with, an insurance carrier.

§5.9002. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings.

(1) Act--The Amusement Ride Safety Inspection and Insurance Act (Title 13, Occupations Code, Chapter 2151).

(2) Amusement ride--Any mechanical, gravity, or water device or devices that carry or convey passengers along, around, or over a fixed or restricted route or course or within a defined area for the purpose of giving its passengers amusement, pleasure, or excitement, but such term does not include:

(A) any coin-operated ride that is manually, mechanically, or electrically operated and customarily placed in a public location and that does not normally require the supervision or services of an operator;

(B) nonmechanized playground equipment, including, but not limited to, swings, seesaws, stationary spring-mounted animal features, rider-propelled merry-go-rounds, climbers, playground slides, trampolines, and physical fitness devices; or

(C) a challenge course or any part of a challenge course, as defined in §2151.107 of the Act to mean a challenge, ropes, team building, or obstacle course that is constructed and used for educational, team and confidence building, or physical fitness purposes, if the person who operates the challenge course has an insurance policy currently in effect written by an insurance company authorized to do business in this state or by a surplus lines insurer, as defined by Chapter 981, Insurance Code, or has an independently procured policy subject to Chapter 101, Insurance Code, insuring the operator against liability for injury to persons arising out of the use of the challenge course, in an amount not less than:

(i) for facilities with a fixed location:

(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; and

(ii) for facilities other than those with a fixed location:

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

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

(3) ASTM--The American Society for Testing and Materials.

(4) Class A amusement ride--An amusement ride with a fixed location and designed primarily for use by children 12 years of age or younger.

(5) Class B amusement ride--Any amusement ride not defined as a Class A amusement ride.

(6) Class B motorized train amusement ride--A Class B amusement ride that:

(A) consists of a motorized vehicle that tows one or more separate passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed track or course;

(B) does not travel under its own power in excess of five miles per hour;

(C) has safety belts for all passengers;

(D) does not run on an elevated track;

(E) has passenger seating areas enclosed by guardrails or doors; and

(F) does not have passenger cars that rotate independently from the motorized vehicle.

(7) Commissioner--The Commissioner of Insurance.

(8) Inspector--A person qualified by training, education, or experience to conduct safety inspections of amusement rides or devices on behalf of an insurance company and in accordance with the American Society for Testing and Materials (ASTM), the manufacturer's standards and criteria, or standards established by the insurance company.

(9) Inspection--A procedure to be conducted by an inspector to determine whether an amusement ride or device is being assembled, maintained, tested, operated, and inspected in accordance with the current ASTM standards, the manufacturer's, or insurer's standards, whichever is the most stringent, and that determines the current operational safety of the ride or device.

(10) Interlocal agreement--An interlocal contract as defined in Government Code §791.003(2).

(11) Local government--A county, municipality, or special district; a junior college district, or other political subdivision of this state or another state; a local government corporation created under Transportation Code Subchapter D, Chapter 431; a political subdivision corporation created under Local Government Code Chapter 304; a local workforce development board created under Government Code §2308.253; or a combination of two or more of such entities.

(12) Mobile amusement ride--An amusement ride that is designed or adapted to be moved from one location to another and is not fixed at a single location.

(13) Owner/operator--The person or entity responsible for an amusement ride and his or its agents or representatives. A separate reference to owner or operator shall be deemed to include owner/operator.

(14) TDI--The Texas Department of Insurance.

§5.9004. Amusement 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;

(E) fencing, guards, barricades, stairways and ramps;

(F) ride structure and moving parts;

(G) tightness of bolts and nuts;

(H) blocking, support braces and jackstands;

(I) electrical equipment;

(J) lubrication as per manufacturer's instructions;

(K) hydraulic and/or pneumatic equipment;

(L) communication equipment necessary for operation (if applicable);

(M) operation of ride prior to opening through one complete cycle of proper functioning; and

(N) any other component that is included in the manufacturer's specific ride maintenance and safety checks or current ASTM standards, or that the operator or person performing the daily inspection deems necessary for inspection.

(3) The Texas Department of Insurance (TDI) adopts and incorporates herein by reference TDI Form AR-300 (Daily Inspection Record), Effective May, 2000. This form is published by TDI 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. This form sets forth the inspection requirements of this subsection and also includes the name of the device, location (city, state), date of the inspection, manufacturer and serial number, and owner/operator. The form must be signed by the person performing the daily inspection and his supervisor.

(4) Daily inspection record forms used by industry associations, individual operators, or individual manufacturers may be used to fulfill the requirements of this subsection if the forms contain all of the inspection items and elements set forth in this subsection and the TDI Form AR-300 (Daily Inspection Record).

(5) In addition to the requirements of this subsection, the owner/operator who operates a mobile amusement ride must also follow the manufacturer's specific checklist for specific ride maintenance and safety checks.

(f) Schedule of Operations. In addition to the inspection requirements of this section, TDI Form AR-102, Amusement Ride Schedule of Operations in Texas, Effective May, 2000, is adopted herein by reference and shall include a schedule of operating locations and dates for each six-month period for mobile operations. This information shall be provided by the owner/operator to TDI, Loss Control Regulation Division, Mail Code 103-9A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104, a minimum of 10 days in advance of each six-month period. Any changes in the schedule must be submitted on an amended TDI Form AR-102 to TDI by the owner/operator within 10 days of such change.



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