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DEPARTMENT OF ENVIRONMENTAL QUALITY

 

DIVISION 174

UNDERGROUND STORAGE TANK INSURANCE

COPAYMENT PROGRAM

340-174-0005

Authority, Purpose, and Scope

(1) These rules are promulgated in accordance with and under the authority of ORS 466.706 to 466.835 as amended by Chapter 863, Oregon Laws, 1991 (Senate Bill 1215). These rules are in addition to OAR chapter 340, division 172.

(2) The purpose of these rules is to:

(a) Provide for the regulation of persons who receive assistance for copayment of insurance to meet underground storage tank (UST) financial responsibility requirements at facilities with UST project work; and

(b) Regulate the procedures for providing copayment to insurers for insurance to meet the underground storage tank financial responsibility requirements at facilities with UST project work.

(3) These rules establish requirements, standards or procedures for:

(a) Qualifying and applying for copayment assistance to meet the UST financial responsibility requirements;

(b) Copayment to insurer;

(c) Financial responsibility; and

(d) Administration and enforcement of these rules by the Department.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 40
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0010

Definitions

The definitions in OAR 340-172-0010 and the following definitions apply to these rules.

(1) "Insurer" means insurance agent, producing agent or company providing underground storage tank insurance meeting state and federal underground storage tank financial responsibility requirements.

(2) "Premium" means cost of insurance coverage including insurance taxes, fees and surplus line fees.

(3) "Insurer's Written Quote" means a quote for UST insurance coverage on a letterhead of a state admitted insurance company, registered risk retention group, or a surplus lines agent licensed to do business in Oregon.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 40
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0020

Insurance Copayment Benefits

(1) Any person eligible for Tier 2, 3, or 4 UST financial assistance under OAR Chapter 340, Division 172 will qualify for UST insurance copayment assistance upon receipt of a UST insurance copayment certificate.

(2) In addition to the requirements of section (1) of this rule, where UST project work was started after December 22, 1988 and completed before December 31, 1993, a person qualifying for:

(a) Tier 2 is eligible for an annual 50 percent insurance copayment, not to exceed $2,000 per year between October 1, 1991 and December 31, 1995;

(b) Tier 3 is eligible for an annual 75 percent insurance copayment, not to exceed $3,000 per year between October 1, 1991 and December 31, 1996;

(c) Tier 4 is eligible for an annual 90 percent insurance copayment, not to exceed $3,600 per year between October 1, 1993 and December 31, 1996.

(3) In addition to the requirements of section (1) of this rule, where UST project work was completed in the calendar year 1994, a person qualifying for:

(a) Tier 2 is eligible for an annual 40 percent insurance copayment, not to exceed $1,600 per year between January 1, 1994 and December 31, 1995;

(b) Tier 3 is eligible for an annual 65 percent insurance copayment, not to exceed $2,600 per year between January 1, 1994 and December 31, 1996;

(c) Tier 4 is eligible for an annual 85 percent insurance copayment, not to exceed $3,400 per year between January 1, 1994 and December 31, 1996.

(4) In addition to the requirements of section (1) of this rule, where UST project work was completed in the calendar year 1995, a person qualifying for:

(a) Tier 2 is eligible for an annual 30 percent insurance copayment, not to exceed $1,200 per year between January 1, 1995 and December 31, 1995;

(b) Tier 3 is eligible for an annual 55 percent insurance copayment, not to exceed $2,200 per year between January 1, 1995 and December 31, 1996;

(c) Tier 4 is eligible for an annual 80 percent insurance copayment, not to exceed $3,200 per year between January 1, 1995 and December 31, 1996.

(5) In addition to the requirements of section (1) of this rule, where UST project work was completed in the calendar year 1996, a person qualifying for:

(a) Tier 3 is eligible for an annual 45 percent insurance copayment, not to exceed $1,800 per year between January 1, 1996 and December 31, 1996;

(b) Tier 4 is eligible for an annual 75 percent insurance copayment, not to exceed $3,000 per year between January 1, 1996 and December 31, 1996.

(6) In addition to the requirements of section (1) of this rule, where UST project work was completed between December 22, 1988 and December 31, 1996, a person qualifying for Tier 4 UST financial assistance is eligible for an annual 50 percent insurance copayment, not to exceed $2,000 per year between January 1, 1997 and December 31, 1997.

(7) In addition to the requirements of section (1) of this rule, where UST project work was completed between December 22, 1988 and December 31, 1996, a person qualifying for Tier 4 UST financial assistance is eligible for an annual 25 percent insurance copayment, not to exceed $1,000 per year between January 1, 1998 and December 31, 1998.

Stat. Auth.: OL 1993, Ch. 661
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 40
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92; DEQ 8-1994, f. & cert. ef. 3-22-94

340-174-0030

General Provisions, Insurance Copayment

(1) A person qualifying under OAR chapter 340, division 172 and these rules may receive assistance in buying insurance that meets the UST financial responsibility requirements at UST facilities holding an accumulation of motor fuel for resale.

(2) An insurer must have filed information with the Oregon Department of Insurance and Finance in accordance with ORS 466.706 through 466.835 as amended by Chapter 863, Oregon Laws, 1991 (Senate Bill 1215).

(3) Only one insurance copayment certificate may be issued to each facility location. The insurance copayment shall cover all USTs at a facility location.

(4) An applicant may qualify for insurance copayment benefits at more than one UST facility location.

(5) Copayment for insurance will be made by a warrant (check) issued to both the applicant and the insurer for each policy year of eligibility.

(6) Copayment of insurance shall not be accepted by the insurer until the applicant pays the remaining portion of the insurance premium so that in combination with the copayment it provides 100 percent binding of UST financial responsibility insurance coverage.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: Sec. 38 - 43a, Ch. 863, OL 1991
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0040

Application for UST Insurance Copayment Certificate

Any person wishing to apply for insurance copayment assistance under these rules shall submit a written application in accordance with OAR chapter 340, division 172.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0050

Additional Information Required on the UST Financial Assistance Application

In addition to the requirements of OAR 340-172-0040, the UST financial assistance application shall include a copy of the insurer's written quote agreeing to provide UST financial responsibility coverage for the UST project described on the application. The insurer's written quote shall include:

(1) Name and address of the insurance company or surplus lines agent.

(2) Name, address and telephone number of the Oregon representative of the insurer.

(3) The name, signature, address, and telephone number of the Oregon licensed insurance agent.

(4) Conditions of insurance coverage.

(5) Estimated cost of annual coverage for the facility.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0055

Insurance Copayment Certificate of Eligibility

(1) The Department shall issue an insurance copayment certificate to an applicant who has filed a complete application and meets the requirements of OAR chapter 340, division 172 and these rules.

(2) The copayment benefits will start on the latter of:

(a) The date the project is certified complete by the Department; or

(b) The date the insurance is in effect.

(3) The applicant may not assign any right, title, and interest in the insurance copayment certificate to any person other than a subsequent property owner, tank owner or permittee of the underground storage tank facility.

(4) Insurance copayment certificates shall be valid for one year from the date of issue. An insurance copayment certificate may be renewed subject to availability of funds from the USTCCA fund.

(5) The applicant and the insurer are subject to the conditions on the insurance copayment certificate.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991,Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0060

Requirement of Financial Responsibility

(1) The applicant shall provide proof of financial responsibility for cleanup of releases from the underground storage tank and any third party damages resulting from releases from the underground storage tank as required in OAR Chapter 340, Division 150 and federal regulation 40 CFR 280 and 340-174-0065.

(2) The proof of financial responsibility shall be documented by an insurance coverage policy provided by an insurer containing the information listed in OAR 340-174-0070(1)(e)(A) through (F).

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented:OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0065

UST Insurance Requirements Letter

A UST insurance requirements letter will be issued to the applicant upon completion of UST project work performed in accordance with OAR chapter 340, divisions 122 and 150 or upon receiving financial assistance for UST project work completed prior to October 1, 1991. This letter will require the applicant to obtain financial responsibility coverage in accordance with these rules and will allow the applicant to receive insurance copayment benefits.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0070

Insurance Copayment

(1) In accordance with the insurance copayment certificate and these rules, the Department will pay a portion of the insurance cost to the UST insurer where:

(a) Insurance copayment confirmation and insurance required letters have been issued to the applicant;

(b) All USTs at a facility meet the requirements of OAR Chapter 340, Divisions 122 and 150 or the applicant is in compliance with a compliance schedule to complete a groundwater corrective action plan;

(c) The Department received a copy of the insurance invoice;

(d) The billing period is for insurance coverage during the policy year; and

(e) Insurance coverage is certified by the insurer. The certification shall include:

(A) The insured's name, business name and address;

(B) The UST facilities covered by the insurance, complete with name and address of each facility;

(C) Policy year;

(D) Limits of coverage;

(E)Total premium and premium for each facility; and

(F) Cancellation and reinstatement terms.

(2) The Department will copay the insurer within 30 days after receiving a completed invoice for the initial premium, the annual premium or an additional premium. Incomplete invoices will be returned to the insurer for completion.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0080

Insurance Cancellation and Termination

(1) The insurance copayment benefits will terminate:

(a) Upon termination of insurance coverage; or

(b) When the applicant sells or otherwise transfers interest in the facility.

(2) An insurer receiving copayment shall notify the Department within 15 days after sending a notice of intent to cancel to the insured. This notice shall describe the reason for the intent to cancel.

(3) An insurer receiving copayment under these rules shall notify the Department within 30 days after insurance coverage has been terminated or cancelled. The notice written shall include:

(a) A list of the UST facilities no longer insured;

(b) The reason for cancellation or termination;

(c) The effective date of cancellation or termination; and

(d) The return of premium amount.

(4) Within 30 days after receiving a returned insurance premium, the applicant must return the copayment portion to the Department.

(5) When returning premiums copayed under these rules, the insurer shall pay the returned premium in the form of a check with payment to both the insured and the Department.

(6) The copayment of insurance is subject to monies being available from the Underground Storage Tank Insurance Fund.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

340-174-0090

Appeal Procedures

An applicant may appeal determinations by the Department under these rules, in accordance with OAR 340-172-0110, by sending a written request for a formal contested case hearing within 20 days after the Department awards or denies financial assistance.

Stat. Auth.: ORS 466.706 - 466.895 & 466.995
Stats. Implemented: OL 1991, Ch. 863, Sec. 38 - 43a
Hist.: DEQ 29-1991(Temp), f. 12-18-91, cert. ef. 12-20-91; DEQ 14-1992, f. & cert. ef. 6-11-92

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