Mich. Admin. Code R. 29.2163e

Current through Vol. 24-22, December 15, 2024
Section R. 29.2163e - Insurance and risk retention group coverage

Rule 63e. Section 280.97 is amended to read as adopted from the July 15, 2015, EPA-UST rules as follows:

Section 280.97.

(a) An O/O may satisfy the requirements of section 280.93 by obtaining liability insurance that conforms to the requirements of this section from a qualified insurer or risk retention group. This insurance may be in the form of a separate insurance policy or an endorsement to an existing insurance policy.
(b) Each insurance policy must be amended by an endorsement worded as specified in subdivision (b)(1) of this section, or evidence by a certificate of insurance worded as specified in subdivision (b)(2) of this section, except that instructions in brackets must be replaced with the relevant information and the brackets deleted:
(1) Endorsement Name: [name of each covered location]

____________________________________________________________________

____________________________________________________________________

Address: [address of each covered location]

____________________________________________________________________

____________________________________________________________________

Policy Number:

____________________________________________________________________

Period of Coverage: [current policy period]

____________________________________________________________________

Name of [Insurer or Risk Retention Group]:

____________________________________________________________________

Address of [Insurer or Risk Retention Group]:

____________________________________________________________________

____________________________________________________________________

Name of Insured:

____________________________________________________________________

Address of Insured:

____________________________________________________________________

____________________________________________________________________

Endorsement:

1. This endorsement certifies that the policy to which the endorsement is attached provides liability insurance covering the following USTs: [List the number of tanks at each facility and the name(s) and address(es) of the facility(ies) where the tanks are located. If more than 1 instrument is used to assure different tanks at any 1 facility, for each tank covered by this instrument, list the tank identification number provided in the notification submitted pursuant to 40 C.F.R. part 280.22, or the corresponding state requirement, and the name and address of the facility.] for [insert: "taking corrective action" and/or "compensating third parties for bodily injury and property damage caused by" either "sudden accidental releases" or non sudden accidental releases" or "accidental releases" in accordance with and subject to the limits of liability, exclusions, conditions, and other terms of the policy; if coverage is different for different tanks or locations, indicate the type of coverage applicable to each tank or location] arising from operating the UST(s) identified above.

The limits of liability are [insert the dollar amount of the "each occurrence" and "annual aggregate" limits of the Insurers or Groups liability; if the amount of coverage is different for different types of coverage or for different USTs or locations, indicate the amount of coverage for each type of coverage and/or for each UST or location], exclusive of legal defense costs, which are subject to a separate limit under the policy. This coverage is provided under [policy number]. The effective date of said policy is [date].

2. The insurance afforded with respect to such occurrences is subject to all of the terms and conditions of the policy; provided, however, that any provisions inconsistent with subsections (a) to (e) of this Paragraph 2 are hereby amended to conform with subsections (a) to (e);
a. Bankruptcy or insolvency of the insured shall not relieve the ["Insurer" or "Group"] of its obligations under the policy to which this endorsement is attached.
b. The ["Insurer" or "Group"] is liable for the payment of amounts within any deductible applicable to the policy to the provider of corrective action or a damaged third-party, with a right of reimbursement by the insured for any such payment made by the ["Insurer" or "Group"]. This provision does not apply with respect to that amount of any deductible for which coverage is demonstrated under another mechanism or combination of mechanisms as specified in 40 C.F.R. parts 280.95-280.102 and 280.104-280.107.
c. Whenever requested by [a Director of an implementing agency], the ["Insurer" or "Group"] agrees to furnish to [the Director] a signed duplicate original of the policy and all endorsements.
d. Cancellation or any other termination of the insurance by the ["Insurer" or "Group"] except for nonpayment of premium or misrepresentation by the insured, will be effective only upon written notice and only after the expiration of 60 days after a copy of such written notice is received by the insured. Cancellation for non-payment of premium or misrepresentation by the insured will be effective only upon written notice and only after expiration of a minimum of 1 days after a copy of such written notice is received by the insured.

[Insert for claims made policies:

e. The insurance covers claims otherwise covered by the policy that are reported to the ["Insured" or "Group"] within 6 months of the effective date of cancellation or non-renewal of the policy except where the new or renewed policy has the same retroactive date or a retroactive date earlier than that of the prior policy, and which arise out of any covered occurrence that commenced after the policy retroactive date, if applicable, and prior to such policy renewal or termination date. Claims reported during such extended reporting period are subject to the terms, conditions, limits, including limits of liability, and exclusions of the policy.]

I hereby certify that the wording of this instrument is identical to the wording in 40 C.F.R. part 280.97(b)(1) and that the ["Insurer" or "Group"] is ["licensed to transact the business or insurance or eligible to provide insurance as an excess or surplus lines insurer in 1 or more states".]

[Signature of authorized representative of Insurer or Risk Retention Group]

____________________________________________________________________

[Name of person signing]

____________________________________________________________________

[Title of person signing], Authorized Representative of [name of Insurer or Risk Retention Group]

____________________________________________________________________

[Address of Representative]

____________________________________________________________________

____________________________________________________________________

(2) Certificate of Insurance

Name: [name of each covered location]

____________________________________________________________________

Address: [address of each covered location]

____________________________________________________________________

Policy Number:

____________________________________________________________________

Endorsement (if applicable):

____________________________________________________________________

Period of Coverage: [current policy period] Name of [Insurer or Risk Retention Group]:

____________________________________________________________________

Address of [Insurer or Risk Retention Group]:

____________________________________________________________________

Name of Insured:

____________________________________________________________________

Address of Insured:

____________________________________________________________________

____________________________________________________________________

Certification:

1. [Name of Insurer or Risk Retention Group], [the "Insurer" or "Group"], as identified above, hereby certifies that it has issued liability insurance covering the following UST(s): [List the number of tanks at each facility and the name(s) and address(es) of the facility(ies) where the tanks are located. If more than 1 instrument is used to assure different tanks at any 1 facility, for each tank covered by this instrument, list the tank identification number provided in the notification submitted pursuant to 40 C.F.R. part 280.22, or the corresponding state requirement, and the name and address of the facility.] for [insert: "taking corrective action" and/or "compensating third parties for bodily injury and property damage caused by" either "sudden accidental releases" or "nonsudden accidental releases" or "accidental releases" in accordance with and subject to the limits of liability, exclusions, conditions, and other terms of the policy; if coverage is different for different tanks or locations, indicate the type of coverage applicable to each tank or location] arising from operating the UST(s) identified above.

The limits of liability are [insert the dollar amount of the "each occurrence" and "annual aggregate" limits of the Insurers or Groups liability; if the amount of coverage is different for different types of coverage or for different USTs or locations, indicate the amount of coverage for each type of coverage and/or for each UST or location], exclusive of the legal defense costs, which are subject to a separate limit under the policy. This coverage is provided under [policy number]. The effective date of said policy is [date].

2. The ["Insurer" or "Group"] further certifies the following with respect to the insurance described in Paragraph 1:
a. Bankruptcy or insolvency of the insured shall not relieve the ["Insurer" or "Group"] of its obligations under the policy to which this certificate applies.
b. The ["Insurer" or "Group"] is liable for the payment of amounts within any deductible applicable to the policy to the provider of corrective action or a damaged third party, with a right of reimbursement by the insured for any such payment made by the [Insurer" or "Group"]. This provision does not apply with respect to that amount of any deductible for which coverage is demonstrated under another mechanism or combination of mechanisms as specified in 40 C.F.R. parts 280.95 to 280.102 and 280.104 to 280.107.
c. Whenever requested by [a Director of an implementing agency], the ["Insurer" or "Group"] agrees to furnish to [the Director] a signed duplicate original of the policy and all endorsements.
d. Cancellation or any other termination of the insurance by the ["Insurer" or "Group"] except for not-payment of premium or misrepresentation by the insured, will be effective only upon written notice and only after the expiration of 60 days after a copy of such written notice is received by the insured. Cancellation for non-payment of premium or misrepresentation by the insured will be effective only upon written notice and only after expiration of a minimum of 10 days after a copy of such written notice is received by the insured.

[Insert for claims-made policies:

e. The insurance covers claims otherwise covered by the policy that are reported to the ["Insurer" or "Group"] within 6 months of the effective date of cancellation or non-renewal of the policy except where the new or renewed policy has the same retroactive date or a retroactive date earlier than that of the prior policy, and which arise out of any covered occurrence that commenced after the policy retroactive date, if applicable, and prior to such policy renewal or termination date. Claims reported during such extended reporting period are subject to the terms, conditions, limits, including limits of liability, and exclusions of the policy.]

I hereby certify that the wording of this instrument is identical to the wording in 40 C.F.R. part 280.97(b)(2) and that the ["Insurer" or "Group"] is ["licensed to transact the business of insurance or eligible to provide insurance as an excess or surplus lines insurer, in 1 or more states"].

[Signature of authorized representative of Insurer]

[Type Name]

[Title], Authorized Representative of [name of Insurer or Risk Retention Group]

[Address of Representative]

(c) Each insurance policy shall be issued by an insurer or a risk retention group that, at a minimum, is licensed to transact the business of insurance or eligible to provide insurance as an excess or surplus lines insurer in 1 or more states.
(d) In the event of termination or nonrenewal of liability insurance coverage used to meet the financial responsibility requirements, the insurer shall notify the department of termination or nonrenewal not more than 20 days after the date of termination or nonrenewal. The notice shall state the name and address of the insured, the date of termination or nonrenewal, and the address of the facility previously insured.

Mich. Admin. Code R. 29.2163e

1998-2000 AACS; 2018 MR 21, Eff. 11/14/2018