Section 444.6855 - Financial assurance: Insurance1. An owner or operator may demonstrate financial assurance for closure and postclosure by obtaining insurance which conforms to the requirements of this section.2. The insurance must: (a) Be obtained by the owner or operator and become effective before April 9, 1997, or the initial receipt of waste, whichever is later; and(b) Be maintained until the owner or operator is no longer required to demonstrate financial responsibility pursuant to NAC 444.6851, 444.68515 and 444.6852.3. The insurer must be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in this State.4. The owner or operator shall notify the solid waste management authority that a copy of the policy of insurance has been placed in the operating records of the disposal site.5. The policy of insurance must guarantee that money will be available to close the municipal solid waste landfill unit whenever final closure occurs or to carry out a program for postclosure whenever the period of postclosure begins, whichever is applicable. The policy must also guarantee that once closure or postclosure begins, the insurer is responsible for paying money to the owner, operator or any other person authorized to conduct the closure or postclosure, up to an amount equal to the face amount of the policy.6. Except as otherwise provided in NAC 444.6853, the policy of insurance must be issued for a face amount at least equal to the current estimate for closure or postclosure, whichever is applicable. Actual payments by the insurer must not change the face amount, although the insurer's future liability may be lowered by the amount of the payments.7. An owner, operator or any other person authorized to conduct the closure or postclosure may receive reimbursements for related expenditures. Requests for reimbursement may be granted by the insurer only if the remaining value of the policy is sufficient to cover the remaining costs of the closure or postclosure, and if justification and documentation of the cost is placed in the operating records of the disposal site. The owner or operator shall notify the solid waste management authority that documentation of the justification for reimbursement has been placed in the operating records and that reimbursement has been received.8. Each policy of insurance must contain a provision allowing the assignment of the policy to a successor owner or operator. The assignment may be conditional upon the consent of the insurer, if the consent is not unreasonably refused.9. The policy of insurance must provide that the insurer may not cancel, terminate or fail to renew the policy except for a failure to pay the premium. An 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 cancel the policy by sending notice of cancellation by certified mail to the owner, operator and solid waste management authority at least 120 days before the cancellation. If the insurer cancels the policy, the owner or operator shall obtain alternate financial assurance as specified in NAC 444.68525 to 444.6859, inclusive.10. If a policy of insurance provides coverage for postclosure, the insurer shall, commencing on the date that liability to make payments pursuant to the policy accrues, annually increase the face amount of the policy. The increase must be equivalent to the face amount of the policy, less any payments made, multiplied by an amount equal to 85 percent of the most recent rate of interest for or 85 percent of the equivalent yield announced by the United States Treasury for 26-week treasury bills.11. The owner or operator may cancel the policy of insurance only if he or she substitutes alternate financial assurance in accordance with NAC 444.68525 to 444.6859, inclusive, or he or she is no longer required to demonstrate financial responsibility in accordance with the requirements of NAC 444.6851, 444.68515 and 444.6852.12. As used in this section, "face amount" means the total amount the insurer is obligated to pay under the policy.Nev. Admin. Code § 444.6855
Added to NAC by Environmental Comm'n, 11-8-93, eff. 4-9-95; A 11-9-95