Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part VIII - Underground Storage Tank Indemnification Board › Chapter 977 - UNDERGROUND STORAGE TANK INDEMNIFICATION BOARD › Subchapter C - COVERAGE AND CLAIMS PROCEDURES › Section 977.33 - Fund coverage and exclusions

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Fund coverage.
(1)
Corrective action.
The Fund shall indemnify an eligible owner
				  or operator for up to the available coverage limit, for reasonable and
				  necessary corrective action costs. See paragraph (4).
(2)
Bodily injury or property
				  damage.
The Fund shall indemnify the eligible participant, up to the
				  available coverage limit, for bodily injury and property damage. See paragraph
				  (4).
(i) The Fund may defend any suit against
				  the eligible participant. The cost of this defense does not reduce Fund
				  coverage limits.
(ii) Punitive or
				  exemplary damages awarded against the participant as a result of a suit are
				  excluded from Fund coverage.
(3)
Deductible.
Payment of a
				  claim for corrective action costs shall be subject to a deductible in an amount
				  not less than $5,000 per tank per occurrence for each UST or HOT that
				  contributed to the release. If an eligible claim for bodily injury or property
				  damage results from the release, an additional deductible per tank per
				  occurrence in an amount not less than $5,000 applies to all claims in addition
				  to the deductible for corrective action. A certified company is subject to one
				  deductible per tank per occurrence. The Fund in its discretion may pay the
				  entire claim and seek reimbursement of the applicable deductible from the
				  participant. The Fund shall publish the deductibles in the
Pennsylvania
				  Bulletin
annually.
(4)
Limits of liability.
Payment of corrective action costs and
				  bodily injury and property damage claims (See section 704 of the act
				  (35
				  P. S. §
												6021.704)) are subject to the
				  following limits of liability:
(i) Payments
				  for reasonable and necessary corrective action costs, and bodily injury or
				  property damage may not exceed a total of $1.5 million per tank per occurrence
				  and may not exceed the annual aggregate limit.
(ii) Payments may not exceed:
(A) An annual aggregate of $1.5 million for
				  each owner and operator of 100 or less USTs or an owner or operator of 100 or
				  less HOTs.
(B) An annual aggregate
				  of $3 million for each owner or operator of 101 or more USTs or an owner or
				  operator of 101 or more HOTs.
(iii) For the purpose of determining coverage
				  limits, any release, whether sudden, accidental, intermittent or continuous,
				  will be considered one occurrence.
(iv) The Fund will only reimburse an owner or
				  operator for reasonable and necessary corrective action costs.
(v) Damages paid to a third party for bodily
				  injury or property damage may not exceed the amount of damages awarded by a
				  court of competent jurisdiction or the amount agreed to by the Fund in
				  settlement of the claim or suit resulting from a release. Under no
				  circumstances will the Fund pay any amount in excess of the Fund's limit of
				  liability as found in this paragraph.