In practice what does this rule mean to the driver of a bike?

It means that if you violate a statutory rule of the road that you will be liable for the damages, if any, that are caused by such acts and omissions. For example, if you fail to obey a yield sign and proceed into an intersection while failing to yield the right of way to a car already in the intersection, then in the event someone is injured, you will be considered negligent and liable for all damages proximately flowing from such conduct. It will also result in you being unable to recover for your own injuries if it is found that you were solely responsible for the accident without any culpable fault on the part of the other driver.