Code of Massachusetts Regulations › 310 CMR - DEPARTMENT OF ENVIRONMENTAL PROTECTION › Title 310 CMR 80.00 - Underground Storage Tank Systems › FINANCIAL RESPONSIBILITY › Section 80.54 - Requirements for Financial Responsibility Mechanisms

Current through Register 1525, July 5, 2024
(1)
Underground Storage Tank
				Petroleum Product Cleanup Fund
. An Owner or Operator may satisfy
				the requirements of
				310
				CMR 80.52 by obtaining coverage from the
				Underground Storage Tank Petroleum Product Cleanup Fund at M.G.L. c. 21J, if
				the Owner or Operator complies with M.G.L. c. 21J and
				503 CMR 2.00:
Underground Storage Tank Petroleum Product Cleanup Fund Regulations
				Implementing M.G.L. c. 21J
.
(2)
Insurance and Risk Retention
				Group Coverage
.
(a) An Owner or
				Operator may satisfy the requirements of
				310
				CMR 80.52 by obtaining liability insurance
				that conforms to the requirements of 310 CMR 80.54(2) from a qualified insurer
				or risk retention group. Such insurance may be in the form of a separate
				insurance policy or an endorsement to an existing insurance policy.
(b) Each insurance policy must be amended by
				an endorsement worded as specified in 310 CMR 80.54(2)(b)1., or evidenced by a
				certificate of insurance worded as specified in 310 CMR 80.54(2)(b)2., except
				that italicized instructions in brackets must be replaced with the relevant
				information and the brackets deleted:
1.
Endorsement
.
Name: [
name of each covered location
]
____________________________________________
____________________________________________
Address: [
address of each covered
				  location
]
____________________________________________
____________________________________________
Policy Number: _____________________
Period of Coverage: [
current policy
				  period
]
____________________________________________
____________________________________________
Name of [
Insurer or Risk Retention
				  Group
]:
____________________________________________
____________________________________________
Address of
[Insurer or Risk Retention
				  Group
]:
____________________________________________
____________________________________________
Name of Insured: ______________________
Address of Insured: ____________________
____________________________________________
____________________________________________
Endorsement:
1. This
				endorsement certifies that the policy to which the endorsement is attached
				provides liability insurance covering the following tanks:
[
List the number of tanks at each facility and the
				  name(s) and address(es) of the facility(ies) where the tanks are located. If
				  more than one instrument is used to assure different tanks at any one facility,
				  for each tank covered by this instrument, list the DEP tank number provided in
				  the registration submitted in accordance with
				  310 CMR
				  80.23(1), and the name and
				  address of the facility
.]
For [
insert
: "taking corrective action"
and/or
"compensating third parties for bodily injury and
				  property damage caused by"
either
"sudden accidental releases"
or
"nonsudden accidental releases"] or "accidental releases";
				  in accordance with and subject to the limits of liability, exclusions,
				  conditions, and other terms of the policy; [
if coverage is different
				  for different tanks or locations, indicate the type of coverage applicable to
				  each tank or location
] arising from operating the UST(s) identified
				  above.
The limits of liability are [
insert the dollar amount
				  of the "each occurrence" and "annual aggregate" limits of the Insurer's or
				  Group's liability; if the amount of coverage is different for different types
				  of coverage or for different USTs or locations, indicate the amount of coverage
				  for each type of coverage and/or for each UST or location
], exclusive
				  of legal defense costs, which are subject to a separate limit under the policy.
				  This coverage is provided under [
policy number
]. The effective
				  date of said policy is [
date
].
2. The insurance afforded with respect to
				such occurrences is subject to all of the terms and conditions of the policy;
				provided, however, that any provisions inconsistent with 310 CMR
				80.54(2)(a)2.a. through e. are hereby amended to conform with 310 CMR
				80.54(2)(a)2.a. through e.;
a. Bankruptcy or
				insolvency of the insured shall not relieve the ["Insurer"
or
"Group"] of its obligations under the policy to which this endorsement is
				attached.
b. The ["Insurer"
or
"Group"] is liable for the payment of amounts within any
				deductible applicable to the policy to the provider of corrective action or a
				damaged third-party, with a right of reimbursement by the insured for any such
				payment made by the ["Insurer"
or
"Group"]. This provision
				does not apply with respect to that amount of any deductible for which coverage
				is demonstrated under another mechanism or combination of mechanisms as
				specified in 310 CMR 80.54.
c. The
				Owner and Operator agree to furnish to the Massachusetts Department of
				Environmental Protection (the Department) a signed duplicate original of the
				policy and all endorsements upon request.
d. Cancellation or any other termination of
				the insurance by the ["Insurer"
or
"Group"], except for
				non-payment of premium or misrepresentation by the insured, shall be effective
				only upon written notice and only after the expiration of 60 days after a copy
				of such written notice is received by the insured. Cancellation for non-payment
				of premium or misrepresentation by the insured will be effective only upon
				written notice and only after expiration of a minimum of ten days after a copy
				of such written notice is received by the insured.
[
Insert for the following paragraph for claims-made
				  policies
]:
e. The
				insurance covers claims otherwise covered by the policy that are reported to
				the ["Insurer"
or
"Group"] within six months of the effective
				date of cancellation or non-renewal of the policy except where the new or
				renewed policy has the same retroactive date or a retroactive date earlier than
				that of the prior policy, and which arise out of any covered occurrence that
				commenced after the policy retroactive date, if applicable, and prior to such
				policy renewal or termination date. Claims reported during such extended
				reporting period are subject to the terms, conditions, limits, including limits
				of liability, and exclusions of the policy.
I hereby certify that the wording of this instrument is
				  identical to the wording in 310 CMR 80.54(2)(b)1. and that the ["Insurer"
or
"Group"] is [
choose applicable language
"licensed to transact the business of insurance"
or
"eligible
				  to provide insurance as an excess or surplus lines insurer in one or more
				  states"].
[
Signature of authorized representative of Insurer or
				  Risk Retention Group
]
[
Name of person signing
]
[
Title of person signing
], Authorized
				  Representative of [
name of Insurer or Risk Retention
				  Group
]
[Address of Representative]
2.
Certificate of
				Insurance
.
Name: [
name of each covered location
]
____________________________________________
____________________________________________
Address: [
address of each covered
				  location
]
____________________________________________
____________________________________________
Policy Number:______________________
Endorsement (if applicable):____________
Period of Coverage: [
current policy
				  period
]
____________________________________________
Name of [
Insurer or Risk Retention
				  Group
]:
____________________________________________
____________________________________________
Address of [
Insurer or Risk Retention
				  Group
]:
____________________________________________
____________________________________________
Name of Insured: ______________________
Address of Insured:
____________________________________________
____________________________________________
____________________________________________
Certification:
1.
				[Name of Insurer or Risk Retention Group], [the "Insurer"
or
"Group"], as identified above, hereby certifies that it has issued liability
				insurance covering the following UST(s):
[
List the number of tanks at each facility and the
				  name(s) and address(es) of the facility(ies) where the tanks are located. If
				  more than one instrument is used to assure different tanks at any one facility,
				  for each tank covered by this instrument, list the DEP tank number provided in
				  the registration submitted in accordance with
				  310 CMR
				  80.23(1)  and the name and
				  address of the facility
.]
For [
insert
: "taking corrective action"
and/or
"compensating third parties for bodily injury and
				  property damage caused by"
either
"sudden accidental releases"
or
"nonsudden accidental releases"
or
"accidental releases"]; in accordance with and subject to the limits of
				  liability, exclusions, conditions, and other terms of the policy; [
if
				  coverage is different for different tanks or locations
], indicate the
				  type of coverage applicable to each tank or location] arising from operating
				  the UST(s) identified above.
The limits of liability are [
insert the dollar amount
				  of the "each occurrence" and "annual aggregate" limits of the Insurer's or
				  Group's liability; if the amount of coverage is different for different types
				  of coverage or for different USTs or locations, indicate the amount of coverage
				  for each type of coverage and/or for each UST or location
], exclusive
				  of legal defense costs, which are subject to a separate limit under the policy.
				  This coverage is provided under
[policy number
]. The effective
				  date of said policy is [
date
].
2. The ["Insurer"
or
"Group"] further certifies the following with respect to the insurance
				described in Paragraph one:
a. Bankruptcy or
				insolvency of the insured shall not relieve the ["Insurer"
or
"Group"] of its obligations under the policy to which this certificate
				applies.
b. The ["Insurer"
or
"Group"] is liable for the payment of amounts within any
				deductible applicable to the policy to the provider of corrective action or a
				damaged third-party, with a right of reimbursement by the insured for any such
				payment made by the ["Insurer"
or
"Group"]. This provision
				does not apply with respect to that amount of any deductible for which coverage
				is demonstrated under another mechanism or combination of mechanisms as
				specified in 310 CMR 80.54.
c. The
				Owner and Operator agree to furnish to the Department a signed duplicate
				original of the policy and all endorsements upon request.
d. Cancellation or any other termination of
				the insurance by the ["Insurer"
or
"Group"], except for
				non-payment of premium or misrepresentation by the insured, shall be effective
				only upon written notice and only after the expiration of 60 days after a copy
				of such written notice is received by the insured. Cancellation for non-payment
				of premium or misrepresentation by the insured will be effective only upon
				written notice and only after expiration of a minimum of ten days after a copy
				of such written notice is received by the insured.
[Insert
the following paragraph for claims-made
				  policies
]:
e. The
				insurance covers claims otherwise covered by the policy that are reported to
				the ["Insurer"
or
"Group"] within six months of the effective
				date of cancellation or non-renewal of the policy, except where the new or
				renewed policy has the same retroactive date or a retroactive date earlier than
				that of the prior policy, and which arise out of any covered occurrence that
				commenced after the policy retroactive date, if applicable, and prior to such
				policy renewal or termination date. Claims reported during such extended
				reporting period are subject to the terms, conditions, limits, including limits
				of liability, and exclusions of the policy.
I hereby certify that the wording of this instrument is
				  identical to the wording in 310 CMR 80.54(2)(b)2. and that the ["Insurer" or
				  "Group"] is [
choose applicable language
"licensed to transact
				  the business of insurance ", or "eligible to provide insurance as an excess or
				  surplus lines insurer, in the Commonwealth of Massachusetts"].
[
Signature of authorized representative of Insurer or
				  Risk Retention Group
]
[Type name
]
[
Title
], Authorized Representative of
				  [
name of Insurer or Risk Retention Group
]
[
Address of Representative
]
(c)
				Each insurance policy shall be issued by an insurer or a risk retention group
				that, at a minimum, is licensed to transact the business of insurance or
				eligible to provide insurance as an excess or surplus lines insurer in the
				Commonwealth of Massachusetts.