Current through Register Vol. 54, No. 45, November 9, 2024
Section 271.392 - Commercial insurance; general requirements-persons other than municipalities and municipal authorities(a) Commercial pollution liability insurance policies submitted as proof of financial assurance shall be issued by:(1) A primary insurer including coinsurers who have a certificate of authority to transact the business of insurance in this Commonwealth.(2) A registered Pennsylvania resident broker. The insurance may be provided by an excess or surplus lines insurer approved by the Insurance Department or by a Risk Retention Group as defined in the Product Liability Risk Retention Act of 1981 (15 U.S.C.A. §§ 3901-3906), as amended by the Liability Risk Retention Act of 1986 (15 U.S.C.A. §§ 3901-3903). The primary insurer may reinsure with secondary insurers-reinsurers-who are licensed or authorized to do business in a state of the United States, Canada, West Germany, Switzerland, Great Britain or France.(b) The requirements of this section shall be construed together with §§ 271.371-271.376 to provide coverage for bodily injury and property damage to third parties from both pollution and risks associated with the operation of municipal waste landfills and resource recovery facilities.(c) The insurance policy shall provide coverage for bodily injury and property damage to third parties arising from sudden and nonsudden accidental pollution occurrences arising from the insured's operation of the landfill or resource recovery facility.(d) The insurance policy shall have property damage and bodily injury combined within the per occurrence and aggregate minimum coverage amounts and may be either claims made or occurrence types.(e) The amount of coverage provided for bodily injury and property damage may be exclusive or inclusive of legal defense and claims administration costs.(f) The insurance policy shall provide for the payment of claims up to the full amount of coverage required for bodily injury and property damage regardless of any deductible amount applicable to the policy. The policy shall provide the insurer is liable for the payment of an amount within a deductible which may apply to the policy, with a right of reimbursement by the insured or, in the alternative, the insurer includes within the policy a provision to pay on behalf of the insured a deductible amount.(g) The policy shall: (1) Provide that the full amount of coverage is applicable to each facility covered by the policy. There may be no proration of the coverage amounts among facilities.(2) Specify the insurer shall give 60 days, or another period as required by the Insurance Department, prior written notice, certified mail, return receipt requested, to the Department and the insured before cancellation, termination or expiration of the policy period, if upon expiration of the policy period the policy will not be renewed. The policy may not be canceled or terminated before the expiration of the 60-day notice period.(3) Specify the beginning and ending dates, including retroactive or tail periods, for the policy.(4) State that bankruptcy or insolvency of the insured does not relieve the insurer of its obligations under the policy.(5) Be signed by an authorized agent of the insurer.(6) State the facility covered by the policy.(7) Provide that the insurer shall notify the Department, by certified mail, whenever a substantive change is made to the policy, including limits of liability, scope of coverage, dates, claims procedure, definitions of occurrences or events, or other provisions as may relate to this section.The provisions of this §271.392 adopted September 13, 1991, effective 9/14/1991, 21 Pa.B. 4179. This section cited in 25 Pa. Code § 271.381 (relating to financial assurances requirements); 25 Pa. Code § 271.391 (relating to forms of financial assurances-persons other than municipalities and municipal authorities); and 25 Pa. Code § 271.393 (relating to commercial insurance; coverage-persons other than municipalities and municipal authorities).