A. The Board shall adopt regulations that conform to the federal financialresponsibility requirements of 42 U.S.C. § 6991b(d) and any regulationsadopted thereunder. Owners and operators of underground storage tanks shallannually demonstrate and maintain evidence of financial responsibility fortaking corrective action and for compensating third parties for bodily injuryand property damage in accordance with regulations adopted by the Board.Financial responsibility established in accordance with regulations adoptedby the Board may be demonstrated by any combination of the followingmechanisms: insurance, guarantee, surety bond, letter of credit, irrevocabletrust fund, qualification as a self-insurer, or the Fund. The Fund may beused as a mechanism to demonstrate the portion of the federal financialresponsibility requirements that are in excess of the state financialresponsibility requirements contained in subsection B.
B. State requirements for owners and operators of underground storage tanksfor maintaining evidence of financial responsibility for taking correctiveaction and for compensating third parties for bodily injury and propertydamage shall be as follows:
1. Owners and operators with 600,000 gallons or less of petroleum pumped onan annual basis into all underground storage tanks owned or operated, $5,000per occurrence for taking corrective action and $15,000 per occurrence forcompensating third parties, with an annual aggregate of $20,000;
2. Owners and operators with between 600,001 to 1,200,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $10,000 per occurrence for taking corrective action and $30,000per occurrence for compensating third parties, with an annual aggregate of$40,000;
3. Owners and operators with between 1,200,001 to 1,800,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $20,000 per occurrence for taking corrective action and $60,000per occurrence for compensating third parties, with an annual aggregate of$80,000;
4. Owners and operators with between 1,800,001 to 2,400,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $30,000 per occurrence for taking corrective action and $120,000per occurrence for compensating third parties, with an annual aggregate of$150,000;
5. Owners and operators with in excess of 2,400,000 gallons of petroleumpumped on an annual basis into all underground storage tanks owned oroperated, $50,000 per occurrence for taking corrective action and $150,000per occurrence for compensating third parties, with an annual aggregate of$200,000; and
6. Other owners and operators, $50,000 per occurrence for taking correctiveaction and $150,000 per occurrence for compensating third parties, with anannual aggregate of $200,000.
C. Any claim arising out of conduct for which evidence of financialresponsibility must be provided under this section may be asserted directlyagainst the person guaranteeing or providing evidence of financialresponsibility. In such a case, the person against whom the claim is madeshall be entitled to invoke all rights and defenses which would have beenavailable to the owner or operator had such action been brought directlyagainst the owner or operator.
This section shall not limit any other state or federal statutory,contractual, or common law liability of the guarantor for bad faith innegotiating or in failing to negotiate the settlement of any claim. Thissection does not diminish the liability of any person under § 107 or § 111 ofthe Comprehensive Environmental Response, Compensation and Liability Act of1980, or other applicable law.
The Board shall adopt regulations specifying compliance dates for thedemonstration of financial responsibility required by this section, inaccordance with the compliance dates established in federal regulations bythe United States Environmental Protection Agency.
D. Owners and operators of underground storage tanks who are unable todemonstrate financial responsibility in the minimum amounts specified insubsection B, and operators of facilities who are unable to demonstratefinancial responsibility in amounts established pursuant to subsection D of §62.1-44.34:16, may establish an insurance pool in order to demonstrate suchfinancial responsibility. Any contract establishing such an insurance poolshall provide:
1. For election by pool members of a governing authority for the pool, whichmay be a board of directors, a majority of whom shall be elected or appointedofficials of pool members.
2. A financial plan setting forth in general terms:
a. The insurance coverages to be offered by the insurance pool, applicabledeductible levels, and the maximum level of claims which the pool willself-insure;
b. The amount of cash reserves to be set aside for the payment of claims;
c. The amount of insurance to be purchased by the pool to provide coverageover and above the claims which are not to be satisfied directly from thepool's resources; and
d. The amount, if any, of aggregate excess insurance coverage to be purchasedand maintained in the event that the insurance pool's resources are exhaustedin a given fiscal period.
3. A plan of management which provides for all of the following:
a. The means of establishing the governing authority of the pool;
b. The responsibility of the governing authority for fixing contributions tothe pool, maintaining reserves, levying and collecting assessments fordeficiencies, disposing of surpluses, and administration of the pool in theevent of termination or insolvency;
c. The basis upon which new members may be admitted to, and existing membersmay leave, the pool;
d. The identification of funds and reserves by exposure areas; and
e. Such other provisions as are necessary or desirable for the operation ofthe pool.
E. The formation and operation of an insurance pool under this section shallbe subject to approval by the State Corporation Commission which may, afternotice and hearing, establish reasonable requirements and regulations for theapproval and monitoring of such pools, including prior approval of pooladministrators and provisions for periodic examinations of financialcondition.
The State Corporation Commission may disapprove an application for theformation of an insurance pool, and may suspend or withdraw such approvalwhenever it finds that such applicant or pool:
1. Has refused to submit its books, papers, accounts, or affairs to thereasonable inspection of the Commission or its representative;
2. Has refused, or its officers or agents have refused, to furnishsatisfactory evidence of its financial and business standing or solvency;
3. Is insolvent, or is in such condition that its further transaction ofbusiness in this Commonwealth is hazardous to its members and creditors inthis Commonwealth, and to the public;
4. Has refused or neglected to pay a valid final judgment against it withinsixty days after its rendition;
5. Has violated any law of this Commonwealth or has violated or exceeded thepowers granted by its members;
6. Has failed to pay any fees, taxes or charges imposed in this Commonwealthwithin sixty days after they are due and payable, or within sixty days afterfinal disposition of any legal contest with respect to liability therefor; or
7. Has been found insolvent by a court of any other state, or by theInsurance Commissioner or other proper officer or agency of any other state,and has been prohibited from doing business in such state.
(1987, c. 677; 1989, c. 627; 1990, c. 581; 1992, c. 819; 1993, c. 375; 1996,c. 737; 1998, c. 87.)
A. The Board shall adopt regulations that conform to the federal financialresponsibility requirements of 42 U.S.C. § 6991b(d) and any regulationsadopted thereunder. Owners and operators of underground storage tanks shallannually demonstrate and maintain evidence of financial responsibility fortaking corrective action and for compensating third parties for bodily injuryand property damage in accordance with regulations adopted by the Board.Financial responsibility established in accordance with regulations adoptedby the Board may be demonstrated by any combination of the followingmechanisms: insurance, guarantee, surety bond, letter of credit, irrevocabletrust fund, qualification as a self-insurer, or the Fund. The Fund may beused as a mechanism to demonstrate the portion of the federal financialresponsibility requirements that are in excess of the state financialresponsibility requirements contained in subsection B.
B. State requirements for owners and operators of underground storage tanksfor maintaining evidence of financial responsibility for taking correctiveaction and for compensating third parties for bodily injury and propertydamage shall be as follows:
1. Owners and operators with 600,000 gallons or less of petroleum pumped onan annual basis into all underground storage tanks owned or operated, $5,000per occurrence for taking corrective action and $15,000 per occurrence forcompensating third parties, with an annual aggregate of $20,000;
2. Owners and operators with between 600,001 to 1,200,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $10,000 per occurrence for taking corrective action and $30,000per occurrence for compensating third parties, with an annual aggregate of$40,000;
3. Owners and operators with between 1,200,001 to 1,800,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $20,000 per occurrence for taking corrective action and $60,000per occurrence for compensating third parties, with an annual aggregate of$80,000;
4. Owners and operators with between 1,800,001 to 2,400,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $30,000 per occurrence for taking corrective action and $120,000per occurrence for compensating third parties, with an annual aggregate of$150,000;
5. Owners and operators with in excess of 2,400,000 gallons of petroleumpumped on an annual basis into all underground storage tanks owned oroperated, $50,000 per occurrence for taking corrective action and $150,000per occurrence for compensating third parties, with an annual aggregate of$200,000; and
6. Other owners and operators, $50,000 per occurrence for taking correctiveaction and $150,000 per occurrence for compensating third parties, with anannual aggregate of $200,000.
C. Any claim arising out of conduct for which evidence of financialresponsibility must be provided under this section may be asserted directlyagainst the person guaranteeing or providing evidence of financialresponsibility. In such a case, the person against whom the claim is madeshall be entitled to invoke all rights and defenses which would have beenavailable to the owner or operator had such action been brought directlyagainst the owner or operator.
This section shall not limit any other state or federal statutory,contractual, or common law liability of the guarantor for bad faith innegotiating or in failing to negotiate the settlement of any claim. Thissection does not diminish the liability of any person under § 107 or § 111 ofthe Comprehensive Environmental Response, Compensation and Liability Act of1980, or other applicable law.
The Board shall adopt regulations specifying compliance dates for thedemonstration of financial responsibility required by this section, inaccordance with the compliance dates established in federal regulations bythe United States Environmental Protection Agency.
D. Owners and operators of underground storage tanks who are unable todemonstrate financial responsibility in the minimum amounts specified insubsection B, and operators of facilities who are unable to demonstratefinancial responsibility in amounts established pursuant to subsection D of §62.1-44.34:16, may establish an insurance pool in order to demonstrate suchfinancial responsibility. Any contract establishing such an insurance poolshall provide:
1. For election by pool members of a governing authority for the pool, whichmay be a board of directors, a majority of whom shall be elected or appointedofficials of pool members.
2. A financial plan setting forth in general terms:
a. The insurance coverages to be offered by the insurance pool, applicabledeductible levels, and the maximum level of claims which the pool willself-insure;
b. The amount of cash reserves to be set aside for the payment of claims;
c. The amount of insurance to be purchased by the pool to provide coverageover and above the claims which are not to be satisfied directly from thepool's resources; and
d. The amount, if any, of aggregate excess insurance coverage to be purchasedand maintained in the event that the insurance pool's resources are exhaustedin a given fiscal period.
3. A plan of management which provides for all of the following:
a. The means of establishing the governing authority of the pool;
b. The responsibility of the governing authority for fixing contributions tothe pool, maintaining reserves, levying and collecting assessments fordeficiencies, disposing of surpluses, and administration of the pool in theevent of termination or insolvency;
c. The basis upon which new members may be admitted to, and existing membersmay leave, the pool;
d. The identification of funds and reserves by exposure areas; and
e. Such other provisions as are necessary or desirable for the operation ofthe pool.
E. The formation and operation of an insurance pool under this section shallbe subject to approval by the State Corporation Commission which may, afternotice and hearing, establish reasonable requirements and regulations for theapproval and monitoring of such pools, including prior approval of pooladministrators and provisions for periodic examinations of financialcondition.
The State Corporation Commission may disapprove an application for theformation of an insurance pool, and may suspend or withdraw such approvalwhenever it finds that such applicant or pool:
1. Has refused to submit its books, papers, accounts, or affairs to thereasonable inspection of the Commission or its representative;
2. Has refused, or its officers or agents have refused, to furnishsatisfactory evidence of its financial and business standing or solvency;
3. Is insolvent, or is in such condition that its further transaction ofbusiness in this Commonwealth is hazardous to its members and creditors inthis Commonwealth, and to the public;
4. Has refused or neglected to pay a valid final judgment against it withinsixty days after its rendition;
5. Has violated any law of this Commonwealth or has violated or exceeded thepowers granted by its members;
6. Has failed to pay any fees, taxes or charges imposed in this Commonwealthwithin sixty days after they are due and payable, or within sixty days afterfinal disposition of any legal contest with respect to liability therefor; or
7. Has been found insolvent by a court of any other state, or by theInsurance Commissioner or other proper officer or agency of any other state,and has been prohibited from doing business in such state.
(1987, c. 677; 1989, c. 627; 1990, c. 581; 1992, c. 819; 1993, c. 375; 1996,c. 737; 1998, c. 87.)
A. The Board shall adopt regulations that conform to the federal financialresponsibility requirements of 42 U.S.C. § 6991b(d) and any regulationsadopted thereunder. Owners and operators of underground storage tanks shallannually demonstrate and maintain evidence of financial responsibility fortaking corrective action and for compensating third parties for bodily injuryand property damage in accordance with regulations adopted by the Board.Financial responsibility established in accordance with regulations adoptedby the Board may be demonstrated by any combination of the followingmechanisms: insurance, guarantee, surety bond, letter of credit, irrevocabletrust fund, qualification as a self-insurer, or the Fund. The Fund may beused as a mechanism to demonstrate the portion of the federal financialresponsibility requirements that are in excess of the state financialresponsibility requirements contained in subsection B.
B. State requirements for owners and operators of underground storage tanksfor maintaining evidence of financial responsibility for taking correctiveaction and for compensating third parties for bodily injury and propertydamage shall be as follows:
1. Owners and operators with 600,000 gallons or less of petroleum pumped onan annual basis into all underground storage tanks owned or operated, $5,000per occurrence for taking corrective action and $15,000 per occurrence forcompensating third parties, with an annual aggregate of $20,000;
2. Owners and operators with between 600,001 to 1,200,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $10,000 per occurrence for taking corrective action and $30,000per occurrence for compensating third parties, with an annual aggregate of$40,000;
3. Owners and operators with between 1,200,001 to 1,800,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $20,000 per occurrence for taking corrective action and $60,000per occurrence for compensating third parties, with an annual aggregate of$80,000;
4. Owners and operators with between 1,800,001 to 2,400,000 gallons ofpetroleum pumped on an annual basis into all underground storage tanks ownedor operated, $30,000 per occurrence for taking corrective action and $120,000per occurrence for compensating third parties, with an annual aggregate of$150,000;
5. Owners and operators with in excess of 2,400,000 gallons of petroleumpumped on an annual basis into all underground storage tanks owned oroperated, $50,000 per occurrence for taking corrective action and $150,000per occurrence for compensating third parties, with an annual aggregate of$200,000; and
6. Other owners and operators, $50,000 per occurrence for taking correctiveaction and $150,000 per occurrence for compensating third parties, with anannual aggregate of $200,000.
C. Any claim arising out of conduct for which evidence of financialresponsibility must be provided under this section may be asserted directlyagainst the person guaranteeing or providing evidence of financialresponsibility. In such a case, the person against whom the claim is madeshall be entitled to invoke all rights and defenses which would have beenavailable to the owner or operator had such action been brought directlyagainst the owner or operator.
This section shall not limit any other state or federal statutory,contractual, or common law liability of the guarantor for bad faith innegotiating or in failing to negotiate the settlement of any claim. Thissection does not diminish the liability of any person under § 107 or § 111 ofthe Comprehensive Environmental Response, Compensation and Liability Act of1980, or other applicable law.
The Board shall adopt regulations specifying compliance dates for thedemonstration of financial responsibility required by this section, inaccordance with the compliance dates established in federal regulations bythe United States Environmental Protection Agency.
D. Owners and operators of underground storage tanks who are unable todemonstrate financial responsibility in the minimum amounts specified insubsection B, and operators of facilities who are unable to demonstratefinancial responsibility in amounts established pursuant to subsection D of §62.1-44.34:16, may establish an insurance pool in order to demonstrate suchfinancial responsibility. Any contract establishing such an insurance poolshall provide:
1. For election by pool members of a governing authority for the pool, whichmay be a board of directors, a majority of whom shall be elected or appointedofficials of pool members.
2. A financial plan setting forth in general terms:
a. The insurance coverages to be offered by the insurance pool, applicabledeductible levels, and the maximum level of claims which the pool willself-insure;
b. The amount of cash reserves to be set aside for the payment of claims;
c. The amount of insurance to be purchased by the pool to provide coverageover and above the claims which are not to be satisfied directly from thepool's resources; and
d. The amount, if any, of aggregate excess insurance coverage to be purchasedand maintained in the event that the insurance pool's resources are exhaustedin a given fiscal period.
3. A plan of management which provides for all of the following:
a. The means of establishing the governing authority of the pool;
b. The responsibility of the governing authority for fixing contributions tothe pool, maintaining reserves, levying and collecting assessments fordeficiencies, disposing of surpluses, and administration of the pool in theevent of termination or insolvency;
c. The basis upon which new members may be admitted to, and existing membersmay leave, the pool;
d. The identification of funds and reserves by exposure areas; and
e. Such other provisions as are necessary or desirable for the operation ofthe pool.
E. The formation and operation of an insurance pool under this section shallbe subject to approval by the State Corporation Commission which may, afternotice and hearing, establish reasonable requirements and regulations for theapproval and monitoring of such pools, including prior approval of pooladministrators and provisions for periodic examinations of financialcondition.
The State Corporation Commission may disapprove an application for theformation of an insurance pool, and may suspend or withdraw such approvalwhenever it finds that such applicant or pool:
1. Has refused to submit its books, papers, accounts, or affairs to thereasonable inspection of the Commission or its representative;
2. Has refused, or its officers or agents have refused, to furnishsatisfactory evidence of its financial and business standing or solvency;
3. Is insolvent, or is in such condition that its further transaction ofbusiness in this Commonwealth is hazardous to its members and creditors inthis Commonwealth, and to the public;
4. Has refused or neglected to pay a valid final judgment against it withinsixty days after its rendition;
5. Has violated any law of this Commonwealth or has violated or exceeded thepowers granted by its members;
6. Has failed to pay any fees, taxes or charges imposed in this Commonwealthwithin sixty days after they are due and payable, or within sixty days afterfinal disposition of any legal contest with respect to liability therefor; or
7. Has been found insolvent by a court of any other state, or by theInsurance Commissioner or other proper officer or agency of any other state,and has been prohibited from doing business in such state.
(1987, c. 677; 1989, c. 627; 1990, c. 581; 1992, c. 819; 1993, c. 375; 1996,c. 737; 1998, c. 87.)
