Current through Register Vol. 48, No. 38, September 20, 2024
a) An owner or
operator may satisfy the requirements of this Subpart by obtaining insurance
that 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.
b) The insurer must be
licensed to transact the business of insurance by the Department of
Insurance, according 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, under 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 insurance policy must be issued for a
face amount at least equal to the current closure 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
closure cost estimate decreases, the face amount may be reduced to the amount
of the current closure cost estimate, following written approval by the
Agency.
3) Whenever the current
closure 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 closure
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 insurance
policy must guarantee that funds will be available to close the GCDD recovery
facility in compliance with Section
820.305. 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 GCDD recovery facility;
2) The owner or operator is adjudicated
bankrupt;
3) The Board, under Title
VIII of the Act, or a court of competent jurisdiction orders the GCDD recovery
facility closed;
4) The owner or
operator notifies the Agency that it is initiating closure; or
5) Any person initiates closure with the
approval of the Agency.
f) Reimbursement for Closure Expenses
1) After initiating closure, an owner or
operator or any other person authorized to perform closure may request
reimbursement for closure expenditures by submitting itemized bills to the
Agency.
2) Within 60 days after
receiving bills for closure activities, the Agency must determine whether the
expenditures are for closure in compliance with Section 820.305. The Agency
must direct the insurer to make reimbursement in the amounts the Agency
specifies in writing as expenditures.
3) If the Agency determines based on
information available to it that the cost of closure will be greater than the
face amount of the policy, it must withhold reimbursement of such amounts as it
considers necessary 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 must pay claims according to
the following priorities:
A) Persons the
Agency has contracted to perform closure activities (first priority);
B) Persons who have completed closure
authorized by the Agency (second priority);
C) Persons who have completed work that
furthered the closure (third priority);
D) The owner or operator and related business
entities (last priority).
g) Cancellation
1) The owner or operator must maintain the
policy in full force and effect until the Agency releases the insurer under
Section 820.403.
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 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 if 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. The
assignment may be conditional upon the consent of the insurer if consent is not
unreasonably withheld.
