§ 271.372. Conditions of insurance.
(a) Except for operators of municipal waste agricultural utilization sites under Chapter 275 (relating to land application of sewage sludge), the operator shall maintain financial assurances during operation of the facility and until the Department issues a final closure certification under § 271.342 (relating to final closure certification) which satisfy the following conditions:
(1) Commercial insurance provided to satisfy the financial assurance requirement of this section shall follow the standard commercial or comprehensive general liability policy forms approved by the Insurance Department, and shall include coverage for property damage and bodily injury to third persons.
(2) The insurance policy shall specify that per occurrence and aggregate limits apply to property damage and bodily injury combined.
(3) An insurance policy shall be issued by an insurer having a certificate of authority and a licensed agent authorized to transact the business of insurance in this Commonwealth by the Insurance Department. Insurance may be provided by an excess or surplus lines insurer if the insurer is approved by the Insurance Department.
(4) The full policy amount shall be applicable to each facility covered and operated by the operator. There may be no proration of the policy amount of coverage among facilities.
(5) The insurance policy shall provide that the insurer shall notify the Department by certified mail whenever a substantive change is made in the policy, including policy amounts, scope of coverage, tail period, claims procedures, definitions of occurrences or claims, or another provision related to the requirements of this subchapter.
(6) The amount of coverage provided for property damage and bodily injury may be exclusive or inclusive of legal defense costs.
(7) The insurance policy shall provide for the payment of claims up to the full amount of coverage required under this subchapter, regardless of a deductible amount applicable to the policy. If the policy provides the insurer with a right of reimbursement by the insured for payment of a deductible amount, the policy shall provide that the insurer is liable for payment of the deductible amount. If the policy does not provide the insurer with a right of reimbursement or similar method of recoupment, the insured shall provide additional coverage amounts to meet the requirements of this section by the purchase of excess coverage for the deductible amount.
(b) The operator of a municipal waste agricultural utilization site shall maintain liability coverage during the operation of the permitted area and until the Department issues a final closure certification under this chapter. The operator shall submit a certificate from an insurance company licensed or authorized to do business in this Commonwealth, certifying that the operator has a comprehensive general liability insurance in force covering the operator’s municipal waste land application activities which include, but are not limited to, vehicular activities. The certificate shall provide for third-party bodily injury and property damage protection. Minimum coverage for bodily injury and property damage shall be $500,000. Coverage provided under this subsection shall comply with the following:
(1) The insurance policy shall follow the standard commercial or comprehensive general liability policy forms approved by the Insurance Department, and shall include coverage for property damage and bodily injury to third persons.
(2) The insurance policy shall have property damage and bodily injury combined within the per occurrence and aggregate minimum coverage amounts and may be either claims made or occurrence type.
(3) Each insurance policy shall be issued by an insurer having a certificate of authority and a licensed agent authorized to transact the business of insurance in this Commonwealth by the Insurance Department. Insurance may be provided by an excess or surplus lines insurer approved by the Insurance Department.
(4) The full policy amount shall be applicable to each facility covered and operated by the operator. There may not be proration of the policy amount of coverage among facilities.
(5) The insurance policy shall provide that the insurer shall notify the Department by certified mail whenever a substantive change is made in the policy, including policy amounts, scope of coverage, tail period, claims procedures, definitions of occurrences or claims or another provision related to the requirements of this subchapter.
(6) The insurance coverage may be exclusive or inclusive of legal defense costs. When the coverage is inclusive of legal defense costs, the policy shall state that the amount reserved for payment of claims, exclusive of legal defense and claims administration expenses, is not less than the minimum coverage amount for property damage and bodily injury combined.
Source The provisions of this § 271.372 adopted April 8, 1988, effective April 9, 1988, 18 Pa.B. 1681; amended September 13, 1991, effective September 14, 1991, 21 Pa.B. 4179. Immediately preceding text appears at serial pages (126159) to (126160).
Cross References This section cited in 25 Pa. Code § 271.371 (relating to insurance requirement); 25 Pa. Code § 271.373 (relating to minimum insurance coverage); 25 Pa. Code § 271.377 (relating to insurance pool); 25 Pa. Code § 271.388 (relating to insurance pool—municipalities and municipal authorities); and 25 Pa. Code § 271.392 (relating to commercial insurance; general requirements—persons other than municipalities and municipal authorities).
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