§47-425.

§47-425.
   
   (a) No license shall be issued by the Commission until the applicant
   shall have filed with each application, and the same have been
   approved by the Commission, the following insurance policies and bonds
   issued by an insurance carrier or bonding company authorized to do
   business within this state. In lieu of such policies, the applicant
   may file the written certificate or certificates of any insurance
   carrier duly authorized to do business in this state, certifying that
   it has issued to, or for the benefit of, the applicant, named as the
   insured therein, a policy or policies meeting the requirements of this
   section as hereinafter provided, and that said policy or policies are
   then in full force and effect. Such certificate or certificates shall
   give the dates of issuance and expiration of such policy or policies,
   and shall designate by explicit designation or by appropriate
   reference all motor vehicles covered thereby.
   
   (1) A bond in the penal sum of Five Hundred Dollars ($500.00) in such
   form as may be prescribed by the Commission for the purpose of
   protecting the public against fraud, conditioned upon the delivery of
   correct weights, measures, footage, or grades, if the commodities
   handled by the itinerant merchant are those customarily sold by
   weights, measures, footage, or grades, accurate representation as to
   quality or class of such commodities, the actual payment of checks,
   drafts or other obligations delivered by the itinerant merchant in
   exchange for the purchase of commodities, and conditioned to pay any
   judgment or judgments that may be obtained against the itinerant
   merchant for civil liability arising out of the conduct of his
   business, and further providing for the prompt payment of license fees
   and taxes to this state or any governmental subdivision thereof,
   including the matters hereinbefore specified in this paragraph, but
   not including any causes of action covered by the insurance policies
   described in paragraph (2) of this subsection. Said bond shall further
   provide that any person dealing with said itinerant merchant, any
   person using the commodities handled by him, and any person holding
   checks, drafts, or other obligations, shall have cause of action upon
   said bond by reason of any violation of the terms of said bond with
   respect to such dealing, said commodities, or said checks, drafts or
   other obligations.
   
   (2) A liability insurance policy or bond which shall bind the obligors
   to pay compensation for injuries to persons and damage to property
   resulting from the negligent operation of the motor vehicle operated
   under authority of the itinerant merchant's license, said policy or
   bond to be conditioned to pay any sum up to Five Thousand Dollars
   ($5,000.00) for personal injury to or death of one individual, and up
   to Ten Thousand Dollars ($10,000.00) for personal injuries or deaths
   resulting from any single accident, and up to One Thousand Dollars
   ($1,000.00) for damage to property in any single accident.
   
   (b) Every insurance policy and bond or certificate thereof filed with
   the Commission under the provisions of this act shall contain an
   endorsement or provision that the same shall not be cancelled by the
   obligor, shall not expire, and shall not become reduced in amount,
   until thirty (30) days after notice by registered United States mail
   has been sent to the Commission of the intention to cancel the same,
   or that the same is to expire or is to be reduced in amount. Upon
   receipt of such notice the Commission shall immediately notify the
   itinerant merchant by registered United States mail, return receipt
   requested, of the receipt of such notice, and shall advise him that
   unless a new insurance policy or bond is filed to replace the one to
   be canceled, or to expire, or to be reduced in amount, prior to the
   time such cancelation, expiration or reduction becomes effective, the
   license of such itinerant merchant in connection with which said
   policy or bond was issued shall be revoked at the time such
   cancellation, expiration or reduction becomes effective. If a new
   policy or bond is not filed or the amount of the reduction restored
   prior to the time such cancellation, expiration or reduction becomes
   effective, the Commission must revoke said license at said time, and
   licensee shall return license and license plate to the Commission.
   
   (c) Any person having a cause of action against the itinerant merchant
   arising out of the matters described in paragraphs (1) and (2) of
   subsection (a) of this section may join said itinerant merchant and
   the surety on his bond in the same action, or may sue said surety
   without joining said itinerant merchant in the action if the itinerant
   merchant is deceased or if it is impossible to obtain jurisdiction of
   his person within the state where the cause of action arose.