Current through Register Vol. 41, No. 3, September 23, 2024
A. The
owner and operator of a vessel or a group of such vessels transporting solid
wastes or regulated medical wastes upon the navigable waters of the
Commonwealth, to the extent allowable under state law, shall demonstrate
financial responsibility for bodily injury and property damage to third parties
caused by sudden and/or nonsudden accidental occurrences arising from a deposit
of solid wastes and/or regulated medical waste into the navigable waters of the
Commonwealth. The owner or operator shall establish and maintain liability
coverage in the following amounts:
1. For
sudden and/or nonsudden accidental occurrences, arising from the deposit of
solid wastes from a vessel into the navigable waters of the Commonwealth, to
the extent allowable under state law, at least $1 million per occurrence with
an annual aggregate of at least $2 million, exclusive of legal defense costs;
and
2. For sudden and/or nonsudden
accidental occurrences, arising from the deposit of regulated medical wastes,
or a combination of solid wastes and regulated medical wastes, from a vessel
into the navigable waters of the Commonwealth, to the extent allowable under
state law, at least $3 million per occurrence with an annual aggregate of at
least $6 million, exclusive of legal defense costs.
B. Liability coverage shall include coverage
for waste deposits that occur from loading and unloading the vessels.
C. An owner or operator may demonstrate
liability coverage with the following mechanisms:
1. An insurance policy(s) that conforms to
the requirements of this section from a qualified insurer.
a. Such insurance may be in the form of a
separate insurance policy or an endorsement to an existing insurance
policy.
b. Each insurance policy
must be amended by an endorsement worded in no respect less favorable than the
coverage as specified in APPENDIX IV, or evidenced by a certificate of
insurance worded identically as specified in APPENDIX V, except that
instructions in brackets must be replaced with the relevant information and the
brackets deleted.
c. The owner or
operator initially shall submit an original certificate of insurance or
endorsement and a copy of the entire insurance policy to the department as a
part of the application for a certificate as specified in
9VAC20-170-290 B. After the initial
submission, the owner or operator shall submit an original certificate of
insurance or endorsement evidencing policy renewal as a part of the application
for renewal of the vessel's certificate as specified in
9VAC20-170-290 D.
d. An owner or operator shall submit a copy
of the entire insurance policy to the department within 30 days of the
director's written request.
e. Each
insurance policy must be issued by an insurer that, at a minimum, is licensed
to transact the business of insurance or eligible to provide insurance as an
excess or approved surplus lines insurer in the Commonwealth of Virginia. The
insurer shall not be a captive insurer.
f. Each insurance policy shall provide first
dollar coverage. The insurer shall be liable for the payment of all amounts
within any deductible applicable to the policy to the damaged third party, as
provided in this chapter, with a right of reimbursement by the insured for any
such payment made by the insurer. This provision does not apply with respect to
that amount of any deductible for which coverage is demonstrated under another
mechanism or combination of mechanisms as specified in subdivisions 2 through 4
of this subsection.
2. A
trust agreement as specified in
9VAC20-170-310 C 1 except that the
amount of the trust shall be equal to the amount specified in subsection A of
this section. The trust agreement must be worded identically as specified in
APPENDIX VI, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted.
3. A surety bond as specified in
9VAC20-170-310 C 3 except that the
amount of the bond shall be equal to the amount specified in subsection A of
this section. The surety bond must be worded identically as specified in
APPENDIX VII, except that instructions in brackets are to be replaced with the
relevant information and the brackets deleted.
4. A letter of credit as specified in
9VAC20-170-310 C 4 except that the
face amount of the letter of credit shall be equal to the amount specified in
subsection A of this section. The letter of credit must be worded identically
as specified in APPENDIX VIII, except that instructions in brackets are to be
replaced with the relevant information and the brackets deleted.
D. An owner or operator shall
notify the department in writing within 30 days:
1. Whenever a claim for bodily injury or
property damages caused by a waste deposit into state waters is made against
the owner or operator or an instrument providing financial responsibility for
liability coverage under subsection A of this section; or
2. Whenever the amount of financial
responsibility for liability coverage under subsection A of this section
provided by a financial instrument authorized by subsection C of this section
is reduced.
E. An owner
or operator may demonstrate the required liability coverage through the use of
combinations of insurance, trust funds, surety bonds, and letters of credit.
The amounts of coverage demonstrated shall total at least the minimum amounts
required by subsection A of this section. If the owner or operator demonstrates
the required coverage through the use of a combination of financial
responsibility mechanisms under subsection C of this section, the owner or
operator shall specify at least one such mechanism as "primary" coverage and
shall specify other mechanism as "excess" coverage.
Statutory Authority
§§ 10.1-1402 and 10.1-1454.1 of the Code of
Virginia.
