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Article 3. Insurance of California Public Utilities Code >> Division 2. >> Chapter 2.5. >> Article 3.

(a) Registration shall not be granted to any private carrier of passengers until there is filed with and accepted by the commission, in the form that it prescribes, a currently effective certificate of insurance or a surety bond evidencing protection against liability imposed by law for the payment of damages for personal injury to, or death of, any person or property damage, or both.
  (b) Whenever the commission determines that the certificate of insurance or surety bond of a private carrier of passengers has lapsed or been terminated, the commission shall suspend the private carrier of passenger's registration.
  (c) The commission shall notify the private carrier of passengers of any action taken under subdivision (b).