Title 46, Chapter 7, Section 12
( 46-7-12)
(a) No certificate or permit shall be issued or continued in
operation unless the applicant or holder shall give and maintain
bond, with adequate security, for the protection, in case of
passenger vehicles, of the passengers and baggage carried and of the
public against injury proximately caused by the negligence of such
motor common or contract carrier, its servants, or its agents. In
cases of vehicles transporting freight, the applicant or holder
shall give bond, with adequate security, to secure the owner or
person entitled to recover therefor against loss or damage to such
freight for which the motor common or contract carrier may be
legally liable and for the protection of the public against injuries
proximately caused by the negligence of such motor carrier, its
servants, or its agents. (b) The commissioner shall approve, determine, and fix the amount of
such bonds and shall prescribe the provisions and limitations
thereof; and such bonds shall be for the benefit of and subject to
action thereon by any person who shall sustain actionable injury or
loss protected thereby. (c) The commissioner may, in his or her discretion, allow the filing
of a certificate of insurance on forms prescribed by the
commissioner, in lieu of such bond, evidencing a policy of indemnity
insurance in some indemnity insurance company authorized to do
business in this state, which policy must substantially conform to
all of the provisions of this article relating to bonds. Such
certificate shall be filed by the insurer. The failure to file any
form required by the commissioner shall not diminish the rights of
any person to pursue an action directly against a motor carrier's
insurer. (d) The commissioner shall have power to permit self-insurance, in
lieu of a bond or policy of indemnity insurance, whenever in his or
her opinion the financial ability of the motor carrier so warrants. (e) It shall be permissible under this article for any person having
a cause of action arising under this article in tort or contract to
join in the same action the motor carrier and its surety, in the
event a bond is given. If a policy of indemnity insurance is given
in lieu of bond, it shall be permissible to join the motor carrier
and the insurance carrier in the same action, whether arising in
tort or contract. | 
