(1) No permit will be issued or renewed, nor will any transfer of permit be approved, unless and until the director is furnished satisfactory proof that the operation or proposed operation of the roadside zoo or menagerie under such permit is covered by policy contract of insurance issued by a reputable and financially responsible insurer, which will pay on behalf of such permittee as insured, all sums which such permittee shall become legally obligated to pay as damages because of bodily injury or property damage caused any member of the public, while on the premises of such zoo or menagerie, by negligent operation or maintenance or caused by negligent care, confinement, or supervision of the birds or animals therein. Such policy contract of insurance shall be issued in policy limits of at least the following:

(a) bodily injury - $25,000 for each person and $100,000 for each occurrence;

(b) property damage liability - $5,000 for each occurrence.