Current through Register Vol. 48, No. 38, September 20, 2024
a) An
owner or operator may satisfy the requirements of this Subpart by obtaining
closure and post-closure care insurance which conforms to the requirements of
this Section and submitting to the Agency an executed duplicate original of the
insurance policy and the certificate of insurance for closure and/or
post-closure care specified in Appendix A, Illustration F.
b) The insurer shall be licensed to transact
the business of insurance by the Department of Insurance, pursuant to the
Illinois Insurance Code [215 ILCS 5 ], or at a minimum the insurer must be
licensed to transact the business of insurance or approved to provide insurance
as an excess or surplus lines insurer by the insurance department in one or
more states. [415 ILCS 5/21.1 (a.5)]
c) The policy must be on forms filed with the
Illinois Department of Insurance, pursuant to 50 Ill. Adm. Code 753 and Section
143(2) of the Illinois Insurance Code [215 ILCS
5/143(2)] or on forms approved by
the insurance department of one or more states.
d) Face amount:
1) The closure and post-closure care
insurance policy must be issued for a face amount at least equal to the current
cost estimate. The term "face amount" means the total amount the insurer is
obligated to pay under the policy. Actual payments by the insurer will not
change the face amount, although the insurer's future liability will be lowered
by the amount of the payments.
2)
Whenever the current cost estimate decreases, the face amount may be reduced to
the amount of the current cost estimate, following written approval by the
Agency.
3) Whenever the current
cost estimate increases to an amount greater than the face amount, the owner or
operator, within 90 days after the increase, must either cause the face amount
to be increased to an amount at least equal to the current cost estimate and
submit evidence of that increase to the Agency or obtain other financial
assurance, as specified in this Subpart, to cover the increase and submit
evidence of the alternative financial assurance to the Agency.
e) The closure and post-closure
care insurance policy must guarantee that funds will be available to close the
site and to provide post-closure care thereafter. The policy must also
guarantee that, once closure begins, the insurer will be responsible for paying
out funds, up to an amount equal to the face amount of the policy, upon the
direction of the Agency to such party or parties as the Agency specifies. The
insurer will be liable when:
1) The owner or
operator abandons the site;
2) The
owner or operator is adjudicated bankrupt;
3) The Board, pursuant to Title VIII of the
Act, or a court of competent jurisdiction orders the site closed;
4) The owner or operator notifies the Agency
that it is initiating closure; or
5) Any person initiates closure with approval
of the Agency.
f)
Reimbursement for closure and post-closure care expenses:
1) After initiating closure, an owner or
operator or any other person authorized to perform closure or post-closure care
may request reimbursement for closure and post-closure care expenditures by
submitting itemized bills to the Agency.
2) Within 60 days after receiving bills for
closure or post-closure care activities, the Agency shall determine whether the
expenditures are in accordance with the closure or post-closure care plan. The
Agency shall direct the insurer to make reimbursement in such amounts as the
Agency specifies in writing as expenditures in accordance with the closure and
post-closure care plans.
3) If the
Agency determines based on such information as is available to it that the cost
of closure and post-closure care will be greater than the face amount of the
policy, it shall withhold reimbursement of such amounts as it deems prudent
until it determines that the owner or operator is no longer required to
maintain financial assurance. In the event the face amount of the policy is
inadequate to pay all claims, the Agency shall pay claims according to the
following priorities:
A) Persons with whom
the Agency has contracted to perform closure or post-closure care activities
(first priority);
B) Persons who
have completed closure or post-closure care authorized by the Agency (second
priority);
C) Persons who have
completed work which furthered the closure or post-closure care (third
priority);
D) The owner or operator
and related business entities (last priority).
g) Cancellation:
1) The owner or operator shall maintain the
policy in full force and effect until the Agency releases the insurer pursuant
to Section
811.702.
2) The policy must provide that the insurer
may not cancel, terminate or fail to renew the policy, except for failure to
pay the premium. The automatic renewal of the policy must, at a minimum,
provide the insured with the option of renewal at the face amount of the
expiring policy. If there is a failure to pay the premium, the insurer may
elect to cancel, terminate or fail to renew the policy by sending notice by
certified mail to the owner or operator and the Agency. Cancellation,
termination or failure to renew may not occur, however, during the 120 days
beginning with the date of receipt of the notice by both the Agency and the
owner or operator, as evidenced by the return receipts. Cancellation,
termination or failure to renew may not occur and the policy will remain in
full force and effect in the event that on or before the date of expiration the
premium due is paid.
h)
Each policy must contain a provision allowing assignment of the policy to a
successor owner or operator. Such assignment may be conditional upon consent of
the insurer, provided such consent is not unreasonably refused.
