Permits to operate official inspection stations

(a) The director shall issue permits for and furnish instructions and all forms to official inspection stations. The stations shall operate pursuant to standards established by the director. (b) Application for an official inspection station permit shall be made upon an official form and shall be granted only when the director is satisfied that the station is properly equipped and has competent personnel to make the required inspections. Before issuing a permit, the director shall require the applicant to file proof that the applicant has, in effect, a liability insurance policy, issued to the applicant by an insurance company, authorized to do business in the State, insuring against the liability of the applicant and any of the applicant's employees, in minimum amounts as follows: comprehensive public liability insurance in the amount of $10,000 for one person and $20,000 for one accident and comprehensive property damage insurance of $5,000; provided that the director may, by rules, set higher limits; provided further that the proof of insurance need not be filed by an applicant who inspects only vehicles owned by the applicant; provided further that the proof of insurance need not be filed by instrumentalities of the United States. (c) A permit for an official inspection station shall not be assigned or transferred or used at any location other than that designated by the director and every permit shall be posted in a conspicuous place at the location so designated. (d) A permit for an official inspection station shall be suspended or revoked, or renewal thereof shall be refused by the director, upon a third or subsequent wilful violation within a period of eighteen months of any rule requiring an official inspection station to ensure a vehicle or moped is not equipped with a muffler or exhaust system that fails to comply with section 291-24 or 291-24.5, as applicable.