Code of Maine Rules › 06 - DEPARTMENT OF ENVIRONMENTAL PROTECTION › 096 - DEPARTMENT OF ENVIRONMENTAL PROTECTION - GENERAL › Chapter 400 - GENERAL PROVISIONS › Section 096-400-10 - Liability Insurance

Current through 2024-29, July 17, 2024
All applicants for a new or expanded solid waste disposal
				  facility license, except public entities, shall submit with the application,
				  and annually thereafter, proof of liability insurance for sudden and accidental
				  occurrences for the solid waste disposal facility. Coverage must be provided
				  for bodily injury and property damage and must be provided for the active life
				  and closure of the solid waste disposal facility.
A.
Level of Coverage.
The level
				of coverage must be at least $1,000,000 per occurrence and $2,000,000 annual
				aggregate, unless, because of a greater risk, a higher minimum coverage is
				required by the Department for a particular facility.
B.
Exclusive of Legal Costs.
All liability insurance coverage amounts must be exclusive of legal defense
				costs.
C.
Financial
				Test.
The owner or operator of a private, non-commercial, solid waste
				disposal facility may use a financial test in lieu of liability insurance
				coverage. To use this option, the owner or operator must meet the following
				conditions:
(1)
Demonstration of
				Financial Responsibility
. The owner or operator must provide the
				Department with a letter from the owner's or operator's chief financial officer
				or other appropriate corporate official that demonstrates their financial
				responsibility for liability coverage and a copy of an independent certified
				public accountant's report on examination of the owner's or operator's
				financial statements for the latest completed fiscal year;
(2)
Other Income
. The owner or
				operator of the solid waste disposal facility must derive more than 50 percent
				of its income from activities not associated with the handling, transportation,
				or disposal of solid waste or hazardous waste; and
(3)
Federal Requirements
. The
				owner or operator must meet the financial test for liability coverage in 40 CFR
				264. 147(f)[i]as amended up to July 1, 2014, for an aggregate liability
				coverage of at least $2 million.
(4)
Endorsement Requirements
.
				The wording of liability insurance endorsements and other terms is subject to
				approval by the Department. All endorsements must contain the following
				language:
(a)
Reimbursement
.
				The insurer is liable for the payment of amounts within any deductible
				applicable to the policy, with a right of reimbursement by the insured for any
				such payment made by the insurer;
(b)
Copies of Policy
. The
				insurer agrees to furnish a signed duplicate original of the policy and all
				endorsements upon request by the Department;
(c)
Cancellation
. Cancellation
				of this endorsement, whether by the insurer or the insured, is only effective
				upon written notice and only sixty (60) days after the receipt by the
				Department of the written notice; and
(d)
Other Termination
. Any
				other termination of this endorsement is effective only upon written notice and
				only after thirty (30) days after the receipt by the Department of the written
				notice.
(5)
Bankruptcy or Insolvency
. Bankruptcy or insolvency of the insured
				does not relieve the insurer of its obligations under the policy.
(6)
Discovery Period; Public
				Notice
. If a liability insurance policy is written as a "claims made"
				policy, an endorsement must provide for a discovery period of at least twelve
				(12) months beyond the date of expiration or cancellation of the policy. The
				endorsement must also provide that the underwriter will notify the public
				according to the following requirements:
(a)
Notification of Abutters
. At least sixty (60) days prior to
				policy expiration or cancellation date, give written notification to all owners
				of property abutting the solid waste disposal facility and to the chief elected
				official in the municipality in which the facility is located and in each of
				the municipalities immediately abutting the municipality in which the facility
				is located. The notice must state that insurance for the facility will expire
				or be canceled, giving the date of expiration or cancellation, and that claims
				against the insured must be filed within twelve (12) months from the date of
				expiration or cancellation. The notice must specify where and how claims can be
				filed.
(b)
Public
				Notice
. During the first, third, sixth and ninth month subsequent to
				the date of expiration or cancellation, place in each of the State's major
				newspapers and in all local newspapers published or widely distributed in the
				municipality where the facility is located an advertisement designed to attract
				notice and containing the information specified in subparagraph 1. Major
				newspapers include the Portland Press Herald, Bang or Daily News, Lewiston Sun,
				Kennebec Journal, and Waterville Sentinel.