§ 86.168. Terms and conditions for liability insurance.
(a) A permittee shall submit proof of liability insurance coverage before a permit or license is issued. The proof may consist of either a certificate filed at the time of license application and renewal thereof, or, otherwise annually filed with the Department certifying that the permittee has a public liability insurance policy in force covering all of the permittee’s mining and reclamation operations in this Commonwealth.
(b) The insurance shall be written on an occurrence basis and shall provide for bodily injury and property damage protection in a total amount determined by the Department on a case by case basis, and adequate to compensate persons injured or property damaged as a result of the permittee’s mining and reclamation operation and entitled to compensation under Pennsylvania law.
(c) The insurance shall include and the certificate shall provide a rider covering bodily injury and property damage from the use of explosives if explosives are to be used by the permittee and loss or diminution in quantity or quality of public or private sources of water. The limits of the rider shall be at least equivalent to the limits of the general liability portion of the policy.
(d) The insurance shall include a rider requiring that the insurer notify the Department 30 days prior to substantive changes being made in the policy, or prior to termination or failure to renew.
(e) Minimum insurance coverage for bodily injury shall be $500,000 per person and $1 million aggregate; and minimum insurance coverage for property damage shall be $500,000 for each occurrence and $1 million aggregate.
(f) The insurance coverage shall be maintained in full force for the duration of the permittee’s mining and reclamation operation. The permittee shall submit proof of the coverage annually. If a permittee fails to maintain the insurance, the Department will issue a notice of intent to suspend the license or permit. The notice will allow the permittee or licensee 30 days from receipt of the notice to submit proof of insurance coverage. If proof is not submitted within the 30-day period, the Department will suspend the license or permit.
(g) A bond or an individual insurance policy as required under subsection (c) for each permit may be provided in lieu of liability insurance to cover replacement or restoration of water supplies.
Source The provisions of this § 86.168 adopted December 19, 1980, 10 Pa.B. 4789, effective July 31, 1982, 12 Pa.B. 2382; amended July 30, 1982, 12 Pa.B. 2473, effective July 31, 1982, 12 Pa.B. 2382; amended June 15, 1990, 20 Pa.B. 3383, effective July 27, 1991, 21 Pa.B. 3316; amended November 14, 1997, effective November 15, 1997, 27 Pa.B. 6041. Immediately preceding text appears at serial pages (219171) to (219172).
Notes of Decisions Effect of Regulation
The Department’s regulations impose a duty upon a permittee to obtain liability insurance that complies with the regulations. Although the regulations require all policies to contain a rider requiring the insurer to provide the Department with prior notice of intended termination of coverage, in the absence of a rider, there is no notice of requirement imposed upon the insurer. This is consistent with the legislature’s objective of ensuring that mining operations are conducted with the type of insurance coverage deemed necessary. If a policy does not contain the requisite notice rider, the permit should not issue. Acceptance Ins. Co. v. Sloan, 263 F.3d 278 (3rd Cir. 2001).
Cross References This section cited in 25 Pa. Code § 86.55 (relating to permit renewals; general requirements); 25 Pa. Code § 86.67 (relating to personal injury and property damage insurance information); 25 Pa. Code § 86.144 (relating to requirement to file a certification of liability insurance); and 25 Pa. Code § 86.155 (relating to scope).
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