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.
