Ariz. Admin. Code § 11-3-808

Current through Register Vol. 30, No. 25, June 21, 2024

Section R11-3-808 - Insurance Policy

A. A responsible party may satisfy the financial assurance requirements in the Act and this Chapter by obtaining an insurance policy that meets the requirements of this Section.

B. The responsible party shall ensure the insurance policy is provided by an insurance company that:

1. Is non-captive;

2. Is licensed in Arizona or holds an approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers; and

3. Has an "A.M. Best" rating of not less than A-VII.

C. The responsible party shall ensure the insurance policy:

1. Guarantees insurance proceeds will be available to complete all reclamation in the approved reclamation plan if the aggregate exploration operation or mining unit or facility fails to reclaim all surface disturbances;

2. Guarantees insurance proceeds will be paid up to the amount specified on the face of the insurance policy under the direction of the Inspector to the party specified by the Inspector;

3. Indicates the insurance company providing the policy shall not cancel, terminate, or fail to renew the policy except for failure to pay the premium;

4. Provides for automatic renewal of the insurance policy at the existing face value of the insurance policy;

5. Requires that if the policy holder fails to pay the premium, the insurance company providing the insurance policy will send notice by certified mail to both the policyholder and Inspector at least 60 days before cancelling, terminating, or failing to renew the insurance policy; and

6. Requires the insurance policy to remain in full force and effect if, before the date specified in subsection (C)(5), the renewal premium is paid in full.

D. The insured may, with consent of the Inspector, seek a reduction in the amount of insurance coverage if the Inspector approves a reduced amount of financial assurance. The insurance company providing the policy shall not reduce the amount of insurance without prior consent of the Inspector. The insurance company shall notify the Inspector when the amount of insurance coverage is reduced in accordance with the approved, amended financial assurance requirement.

E. The insured may cancel the insurance policy, with notification to the Inspector, if alternate financial assurance that meets the requirements in the Act and this Chapter is substituted.

Ariz. Admin. Code § R11-3-808

Adopted by final rulemaking at 25 A.A.R. 828, effective 5/11/2019.