5 Colo. Code Regs. § 1002-66.7
Current through Register Vol. 47, No. 20, October 25, 2024
Section 5 CCR 1002-66.7 - INSURANCEA permittee or applicant may satisfy the requirements of subsection 61.13 of Regulation No. 61 by obtaining insurance for closure, post-closure, and corrective actions that conforms to the requirements of section 66.7 , and submitting a certificate for such insurance to the Division.
(1) At a minimum, the insurer must be licensed to transact the business of insurance or be eligible to provide insurance as an excess or surplus lines insurer, and comply with Title 10 Insurance Code, C.R.S., as amended. The insurance company must be conducting business in Colorado and assure the policy is subject to the laws and jurisdiction of the State of Colorado. The insurance company must be regulated and examined by a federal or state agency.(2) The insurance must be effective as of the date of issuance.(3) The wording of the certificate of insurance must be identical to the wording specified for a certificate of insurance in Appendix F.(4) The insurance policy must be issued for a face amount at least equal to closure costs. The term "face amount" means the total amount the insurer is obligated to pay under the policy. Actual payments by the insurer will not change the face amount, although the insurer's future liability will be lowered by the amount of the payments.(5) The insurance policy must guarantee that funds will be available to close and provide post-closure and corrective action care of the permitted facility(ies) whenever closure, post-closure, or corrective action occurs. The policy must also guarantee that once closure, post-closure, or corrective action begins, the insurer will be responsible for paying out funds, up to an amount equal to the face amount of the policy, upon the direction of the Division.(6) If the permittee wishes to pay for closure and post-closure activities directly, without accessing the insurance coverage, this may be done after receiving written approval by the Division. All terms, limits and other applicable information must accompany this approval.(7) Reimbursements- After beginning partial or final closure, post-closure, and/or corrective action care of a facility(ies), a permittee may request reimbursements for closure, post-closure, and/or corrective action expenditures by submitting itemized receipts to the Division.(a) The permittee may request reimbursements for partial or final closure, post-closure, and/or corrective actions only if the remaining value of the insurance policy is sufficient to cover closure costs for the operation.(b) Within sixty (60) days after receiving receipts for partial or final closure, post-closure, and/or corrective actions, the Division will instruct the insurer to make reimbursements in such amounts as the Division specifies in writing if the Division determines that the expenditures are in accordance with the approved financial assurance plan, or otherwise justified.(c) If the Division has reason to believe that the closure costs over the remaining life of the operation will be significantly greater than the face amount of the insurance policy, it may withhold reimbursements of such amounts as it deems prudent until it determines, that the permittee is no longer required to maintain financial assurance for final closure of the operation. If the Division does not instruct the insurer to make such reimbursements, it will provide the permittee with a detailed written statement of reasons.(8) The permittee must maintain the policy in full force and effect until the Division gives written consent to termination of the policy by the permittee. Failure to pay the premium, without substitution of an approved alternate financial assurance mechanism that meets the requirements of subsections 61.13 -(iv) of Regulation No. 61, will constitute a violation of these regulations. Such violation will be deemed to begin upon receipt by the Division of a notice of future cancellation, termination, or failure to renew due to nonpayment of the premium, rather than upon the date of expiration of the insurance policy.(9) An insurance policy must contain a provision allowing assignment of the policy to a successor permittee. Such assignment may be conditional upon consent of the insurer, provided such consent is not unreasonably refused.(10) The insurance policy must provide that the insurer may not cancel, terminate, or fail to renew the policy except for failure to pay the premium. The automatic renewal of the policy must, at a minimum, provide the insured with the option of renewal at the face amount of the expiring policy. If there is a failure to pay the premium, the insurer may elect to cancel the policy by sending notice of cancellation by certified mail to the permittee and the Division 90 days in advance of cancellation.(11) If the insurer provides notice of its intent to cancel the insurance policy in accordance with subsection 66.7 , the permittee must obtain alternate financial assurance that meets the requirements of subsections 61.13 -(iv) of Regulation No. 61. The permittee must establish alternate financial assurance within 60 days of receiving notice of cancellation. Failure of the permittee to establish alternative financial assurance, as required, shall be a violation of the permit and may be cause for revocation of the permit.(12) Cancellation, termination, or failure to renew the policy may not occur and the policy will remain in full force and effect in the event that on or before the date of expiration of the policy one of the following occurs:(a) The Division deems a facility(ies) abandoned; or,(b) The permit is terminated or revoked or a new permit is denied by the Division; or,(c) Closure is ordered by the Division or a State or other court of competent jurisdiction; or,(d) The permittee is named as debtor in a voluntary or involuntary proceeding under Title 11 (bankruptcy), U.S. Code; or (e) The premium due is paid.(13) At a minimum, all premiums shall be paid annually and proof of payment shall be supplied to the Division by no later than 30 days after payment. (14) Commencing on the date that liability to make payments pursuant to the insurance policy accrues, the insurer will thereafter annually increase the face amount of the policy. Such increase must be equivalent to the face amount of the policy, less any payments made, multiplied by an amount equivalent to 85 percent of the most recent investment rate or of the equivalent coupon-issue yield announced by the U.S. Treasury for 26-week treasury securities. (15) The Division shall agree to termination of an insurance policy when the provisions of subsection 61.13 of Regulation No. 61 have been satisfied. (16) An insurance policy must provide that the insurer waives all rights of set off or liens against the insurance policy.