Section 096-400-10 - Liability InsuranceAll applicants for a new or expanded solid waste disposal facility license, except public entities, shall submit with the application, and annually thereafter, proof of liability insurance for sudden and accidental occurrences for the solid waste disposal facility. Coverage must be provided for bodily injury and property damage and must be provided for the active life and closure of the solid waste disposal facility.
A. Level of Coverage. The level of coverage must be at least $1,000,000 per occurrence and $2,000,000 annual aggregate, unless, because of a greater risk, a higher minimum coverage is required by the Department for a particular facility.B. Exclusive of Legal Costs. All liability insurance coverage amounts must be exclusive of legal defense costs.C. Financial Test. The owner or operator of a private, non-commercial, solid waste disposal facility may use a financial test in lieu of liability insurance coverage. To use this option, the owner or operator must meet the following conditions:(1)Demonstration of Financial Responsibility . The owner or operator must provide the Department with a letter from the owner's or operator's chief financial officer or other appropriate corporate official that demonstrates their financial responsibility for liability coverage and a copy of an independent certified public accountant's report on examination of the owner's or operator's financial statements for the latest completed fiscal year;(2)Other Income . The owner or operator of the solid waste disposal facility must derive more than 50 percent of its income from activities not associated with the handling, transportation, or disposal of solid waste or hazardous waste; and(3)Federal Requirements . The owner or operator must meet the financial test for liability coverage in 40 CFR 264. 147(f)[i]as amended up to July 1, 2014, for an aggregate liability coverage of at least $2 million.(4)Endorsement Requirements . The wording of liability insurance endorsements and other terms is subject to approval by the Department. All endorsements must contain the following language: (a)Reimbursement . The insurer is liable for the payment of amounts within any deductible applicable to the policy, with a right of reimbursement by the insured for any such payment made by the insurer;(b)Copies of Policy . The insurer agrees to furnish a signed duplicate original of the policy and all endorsements upon request by the Department;(c)Cancellation . Cancellation of this endorsement, whether by the insurer or the insured, is only effective upon written notice and only sixty (60) days after the receipt by the Department of the written notice; and(d)Other Termination . Any other termination of this endorsement is effective only upon written notice and only after thirty (30) days after the receipt by the Department of the written notice.(5)Bankruptcy or Insolvency . Bankruptcy or insolvency of the insured does not relieve the insurer of its obligations under the policy.(6)Discovery Period; Public Notice . If a liability insurance policy is written as a "claims made" policy, an endorsement must provide for a discovery period of at least twelve (12) months beyond the date of expiration or cancellation of the policy. The endorsement must also provide that the underwriter will notify the public according to the following requirements: (a)Notification of Abutters . At least sixty (60) days prior to policy expiration or cancellation date, give written notification to all owners of property abutting the solid waste disposal facility and to the chief elected official in the municipality in which the facility is located and in each of the municipalities immediately abutting the municipality in which the facility is located. The notice must state that insurance for the facility will expire or be canceled, giving the date of expiration or cancellation, and that claims against the insured must be filed within twelve (12) months from the date of expiration or cancellation. The notice must specify where and how claims can be filed.(b)Public Notice . During the first, third, sixth and ninth month subsequent to the date of expiration or cancellation, place in each of the State's major newspapers and in all local newspapers published or widely distributed in the municipality where the facility is located an advertisement designed to attract notice and containing the information specified in subparagraph 1. Major newspapers include the Portland Press Herald, Bang or Daily News, Lewiston Sun, Kennebec Journal, and Waterville Sentinel.06-096 C.M.R. ch. 400, § 10