oEPA
United SIMM
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9477.03(82)
TITLE: Clarification of Intended Meanings in Hazardous
Waste Facility Certificates of Liability Insurance
APPROVAL DATE: 10-8-82
EFFECTIVE DATE: 10-8-82
ORIGINATING OFFICE:
El FINAL
of Solid Waste
D DRAFT
STATUS:
[ ] A- Pending OMB approval
t ] B- Pending AA-OSWER approval
[ ] C- For review &/or comment
[ ] D- In development or circulating
REFERENCE (other documents):
headquarters
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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PARTS 264 AND 265 SUBPART H - FINANCIAL RESPONSIBILITY
DOC: 9477.03(82)
Key Words:
Regulations:
Subject:
Addressee:
Originator:
Source Doc:
Date:
Summary:
Insurance
40 CFR 264.147, 265.147
Clarification of Intended Meanings in Hazardous Waste Facility
Certificates of Liability Insurance
Dr. R.M. Aickin, Director, ERAS (International) Limited, Ibex
House, Minories, London EC3N1HJ, England
Bruce R. Weddle, Acting Director, State Programs and Resource
Recovery Division
#9477.03(82)
10-8-82
In using the word "occurrence" in the Certificate, the Agency did not
intend to limit the insurance policies which may be used to meet .the require-
ments of §264.147 or §265.147 to occurrence-based policies. Nor did the Agency
intend to exclude coverage provided by claims-made policies, or to amend claims-
made policies so that they respond on an occurrence basis. Furthermore, use of
the words "each occurrence" in the Certificate is not intended to alter limits
of liability under the policies which respond on a "per claim" or "per incident"
basis.
Similarly, use of the terms "sudden accidental occurrence" and "non-sudden
accidental occurrence" in the Certificate does not preclude the use of other
terms such as "environmental impairment" or "pollution incident," in the insur-
ance policies to describe the extent of coverage. While the Certificate language
is not intended to modify the contractual obligations regarding extent of
coverage under the insurance policies used to satisfy the" liability coverage
requirements, the opposite is true for the endorsement of insurance.
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- 94 7 7,-03- (-82)
"r. "». M. Aiekin \
Director, P^».«; ( International ) rimited
Tbex Hous«» :
Minories
London FC3*7 1HJ, England :
near Or. Aickin;
Thank you for your letter of July 2fi, 1982, regarding
the Hazardous Waste Facility Certificate of Liability Insurance
included in the liability coverage regulation applicable to
hazardous waste facility owners and operators (40 CPR ?64.151(j)),
As Acting Director of the Division responsible for development
of the liability coverage regulation, T am pleased to provide
In you with the following response,
"c.
Your concerns, as we understand them, have to do with
the Agency's intent in using certain terms in the Certificate.
_f TO clarify the intended meanings, we confirm the following.
•£ In using .the word "occurrence* in the Certificate, the Agency
£ . did not intend to limit rh« insurance policies which may be used
£ to meet the requirements of *0 CF* -2fi4.147 or ?f5.147 to
°^ occurrence— bailed policies. Mor did the Agency intend to
r exclude coverage provided by claims-mad* policies, or to
^ amend claims— rnade policies so that they respond on an occurrence
— basis. (The Agency's intent in using the tera "occurrence"
c is indicated in the preamble to the regulation under "Definitions
£ _ and Usage" (47 PR 16551, April 1«, 1982).) Furthermore,
-r - use of the words "each occurrence" in the Certificate is not
lfiS41,
!L under "Extent of Coverage").
Vf
if
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-7 —
These statements arc intended to clarify the meanings
of t*»m\s used in-t-.be Certificate *nd should not he interpreted
as a cow.ent on the acceptability of coverage provided by
any particular insurance policy in meeting the rerruirenenta
of 40 CFT? 264.147 or 265.147.
we hope this letter respond* to and alleviates your
concerns.
Sincerely,
R. Weddle
Acting Director
State Prograns and
Resource Recovery Division
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