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If this is a US question, I can't be a 100% sure (being a Brit) but if it's the same as a UK Taxi plate, then this is the proof the the vehicle (and diver) have been licensed as a taxi-cab service. To qualify to work as a taxi (or cab), the vehicle not only needs to have a valid MOT and insurance, but also an additional 'safety MOT' to prove its viable as a taxi.This needs to be re-tested and approved regularly (just as a vehicle's MOT is). As a passenger, you know that the taxi you've just stepped into is legal because the successful certificate of license is displayed in the cab. In the UK, this is a small metal 'plate'. I don't know if the US cab actually displays a medal instead, or if that is just the name given to another shaped plate or certificate instead.
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You're reading What is a taxi medallion?
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No references--I need links and books! :0)
by Answers101 on March 19th, 2006