N.J. Admin. Code § 7:26C-5.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:26C-5.5 - Environmental insurance policy requirements

(a) Any person who chooses to establish an environmental insurance policy as a remediation funding source or financial assurance pursuant to this subchapter shall submit to the Department the original insurance policy. The environmental insurance policy must:

1. Be issued by an entity that is licensed by the New Jersey Department of Banking and Insurance to transact business in the State of New Jersey;

2. Include the applicable case number, the program interest name and program interest number (preferred ID), site name, and site address;

3. Indicate that the environmental insurance policy cannot be revoked or terminated without the prior written approval of the Department except for failure to pay the premium;

4. Specify that the issuer of the environmental insurance policy may revoke or terminate the policy for failure to pay the premium, but only after notifying the person who established the remediation funding source and the Department by certified mail of the decision to revoke or terminate the policy at least 120 days before termination, beginning from the date of receipt by the Department as shown on the signed return receipt;

5. Indicate that the insurer may only disburse those funds from the environmental insurance policy that the licensed site remediation professional approves in writing may be disbursed pursuant to 7:26C-5.12;

6. Indicate the funds in the environmental insurance policy will be utilized solely for the purposes of conducting the remediation; and

7. Specify that the Department, or another party that may subsequently be designated by the Department pursuant to 7:26C-5.13(d), may access the environmental insurance policy to pay for the cost of conducting the remediation.

(b) Any person responsible for conducting the remediation using an environmental insurance policy to satisfy the requirements of this subchapter shall annually, at least 30 days prior to the anniversary date of when that person was obligated to establish a remediation funding source or financial assurance, submit to the Department a written statement from the insurance company confirming the value of the environmental insurance policy in an amount that the licensed site remediation professional has certified, and that the environmental insurance policy has been renewed for the next consecutive 12-month period.

N.J. Admin. Code § 7:26C-5.5

Amended by R.2012 d.095, effective 5/7/2012.
See: 43 N.J.R. 1935(a), 44 N.J.R. 1339(b).
In the introductory paragraph of (a) and in (b), inserted "or financial assurance"; in (a)5, deleted "Department or the" preceding "licensed"; and in (b), deleted "Department has approved or" preceding "licensed".