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DIRECTIVE NUMBER: 9477.06(84)
TITLE: Environmental Impairment Liability (EIL) Insurance
APPROVAL DATE! 11-28-84
EFFECTIVE DATE: n-28-84
ORIGINATING OFFICE: office of Solid Waste
Q FINAL
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REFERENCE (other document*):
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PARTS 264 AND 265 SUBPART H — FINANCIAL RE5P0N SIBILLTY DOG: 9477.06(84)
Key Words: Insurance
Regulations: 40 CFR 264.147(b), 265.147(b)
Subject: Environmental Impairment Liability (ELL) Insurance
Addressee: Regional Division Directors, Regions I—X
Originator: John H. Skinner, Director, Office of Solid Waste
Source Dcc: (b9477.06(84)
Date: 11—28—84
Summa ry:
Owners and operators of surface impoundments, landfills, and land treat-
ment facilities are required to have insurance to meet the liability coverage
requirement for non—s den accidental occurrences under §264.147(b) and
§265.147(b) if they are not using the financial test.
insurance requirements t. re phased in over a three—year period. By January
1985, all owners or operators will be required to have insurance coverage.
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9L.7.O6 (3 .)
2 Nu i 1984
IE 1 RA DtTh
SUBJECT: Availability of Environ erata1 Impairment Liability
(EIL) Insurance
FRO t: John H. Skinner, Director
Office of Solid Waste (S ’ H—562)
TO: Regional DivLsLon i . ectOra
Regions L-X
There has been some question raised in the Regions about
the availability of Erivirori encal Impairment Liability (EIL)
insurance. ELL insurance is necessary for owners and operators
of surface impoundments, Landfills, and Land creac ent facilicie
to meet the liabdity coverage requirement for norisudden acctd ritai
occurrences under S 264.147(5) and 265. 47(b), if they are not
using the financial test. Owners and operators with annual sales
or revenues of Less than S5 million will become subject to this
requirement in January 1985.
It is my underscandin chat this type of insurance is ava .l-
able, although there is a c aLc.ng List. Attached is a list of
companies which offer EIL insurance and the limits of coverage
they provide. The Agency has been advised that at this time
only two companies on the List, Shand Morahan and American
International Group, are caking new customers. The rest of the
companies are offering policies only in Limited circumstances.
Attachment
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2
We are aware that this opcion is not specifically addressed
in § 264.147 or 265.147 of the regulations. The required
wording for the endorsement arid the certificate of insurance
(5 264.151(i)(1) and 264.151(j)(1)) however, states that:
The coverage applies at [ list EPA Identification
flumber, name, and address for each facility] for
[ insert “sudden aceidental occurrences,” “nonsudden
accidental occurrences,” or “8udden and nonsudden
accidental occurrences”] ( emphasis added) .
If you have further questions, please feel to contact me at
(Z02) 382—4761’.
George A. Garland
Chief, Financial Responsibility
arid Assessment Branch
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