Ariz. Admin. Code § R11-2-808 - Insurance
A. An owner or
operator may show financial assurance for reclamation by obtaining insurance
that meets the requirements of this Section. At a minimum, the insurer shall be
a non-captive insurance company licensed to transact the business of insurance
by the Department of Insurance, or eligible to provide insurance as an excess
or surplus lines insurer in the state of Arizona.
B. The reclamation insurance policy shall
guarantee funds will be available to reclaim all disturbed lands and be
available when the operation fails to comply with the approved reclamation
plan. The policy shall also guarantee that, once reclamation begins, the
insurer will be responsible for payment up to an amount equal to the face
amount of the policy, under the direction of the State Mine Inspector to the
party specified by the State Mine Inspector.
C. A policyholder may, with notification to
the State Mine Inspector, receive partial payment for reclaimed areas. The
insurance policy shall provide that requests for payment will be granted by the
insurer only if the remaining value of the policy is adequate to cover the
remaining costs of reclamation. The policyholder shall notify the State Mine
Inspector that payment has been received.
D. The insurance policy shall provide that
the insurer may not cancel, terminate, or fail to renew the policy except for
the failure to pay the premium. The automatic renewal of the policy shall, at a
minimum, provide the insured with the option of renewal at the face amount of
the expiring policy. The insurance policy shall provide that if there is a
failure to pay the premium, the insurer may elect to cancel, terminate, or fail
to renew the policy by sending notice by certified mail to the policyholder and
to the State Mine Inspector 120 days in advance of the action. Cancellation,
termination, or failure to renew may not occur and the policy will remain in
full force and effect if, before the date of expiration, the premium due is
paid.
E. The insured may cancel the
insurance policy, with notification to the State Mine Inspector, if alternate
financial assurance that meets the requirements of the Act and this Chapter is
substituted.
Notes
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