a) "Closure plan" means the plan for closure
prepared in accordance with the requirements of Section
725.212.
b) "Current closure cost estimate" means the
most recent of the estimates prepared in accordance with Sections
725.242(a),
(b), and (c).
c) "Current post-closure cost estimate" means
the most recent of the estimates prepared in accordance with Sections
725.244(a),
(b), and (c).
d) "Parent corporation" means a corporation
that directly owns at least 50 percent of the voting stock of the corporation
that is the facility owner or operator; the latter corporation is deemed a
"subsidiary" of the parent corporation.
e) "Post-closure plan" means the plan for
post-closure care prepared in accordance with the requirements of Sections
725.217
through
725.220.
f) The following terms are used in the
specifications for the financial tests for closure, post-closure care, and
liability coverage. The definitions are intended to assist in the understanding
of these regulations and are not intended to limit the meanings of terms in a
way that conflicts with generally accepted accounting practices.
"Assets" mean all existing and all probable future economic
benefits obtained or controlled by a particular entity.
"Current assets" mean cash or other assets or resources
commonly identified as those that are reasonably expected to be realized in
cash or sold or consumed during the normal operating cycle of the
business.
"Current liabilities" means obligations whose liquidation is
reasonably expected to require the use of existing resources properly
classifiable as current assets or the creation of other current
liabilities.
"Current plugging and abandonment cost estimate" means the
most recent of the estimates prepared in accordance with 35 Ill. Adm. Code
704.212(a),
(b), and (c).
"Independently audited" refers to an audit performed by an
independent certified public accountant in accordance with generally accepted
auditing standards.
"Liabilities" means probable future sacrifices of economic
benefits arising from present obligations to transfer assets or provide
services to other entities in the future as a result of past transactions or
events.
"Net working capital" means current assets minus current
liabilities.
"Net worth" means total assets minus total liabilities and is
equivalent to owner's equity.
"Tangible net worth" means the tangible assets that remain
after deducting liabilities; such assets would not include intangibles, such as
goodwill and rights to patents or royalties.
g) In the liability insurance requirements
the terms "
bodily injury" and "property damage" have the meanings given below.
The Board intends the meanings of other terms used in the liability insurance
requirements to be consistent with their common meanings within the insurance
industry. The definitions given below of several of the terms are intended to
assist in the understanding of these regulations and are not intended to limit
their meanings in a way that conflicts with general insurance industry usage.
"Accidental occurrence" means an accident, including
continuous or repeated exposure to conditions, that results in bodily injury or
property damage neither expected nor intended from the standpoint of the
insured.
"Bodily injury" means bodily injury, sickness, or disease
sustained by a person, including death resulting from any of these at any time.
However, this term does not include those liabilities that, consistent with
standard insurance industry practices, are excluded from coverage in liability
insurance policies for bodily injury.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
definition of this term.
"Environmental damage" means the injurious presence in or
upon land, the atmosphere or any watercourse or body of water of solid, liquid,
gaseous, or thermal contaminants, irritants, or pollutants.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
definition of this term. This term is used in the definition of "pollution
incident".
"Legal defense costs" means any expenses that an insurer
incurs in defending against claims of third parties brought under the terms and
conditions of an insurance policy.
"Nonsudden accidental occurrence" means an occurrence that
takes place over time and involves continuous or repeated exposure.
"Pollutant" means any solid, liquid, gaseous, or thermal
irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis,
chemicals, and waste.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
definition of this term. This definition is used in the definition of
"pollution incident".
"Pollution incident" means emission, discharge, release or
escape of pollutants into or upon land, the atmosphere, or any watercourse or
body of water, provided that such emission, discharge, release, or escape
results in "environmental damage". The entirety of any such emission,
discharge, release, or escape must be deemed to be one "pollution incident".
"Waste" includes materials to be recycled, reconditioned, or reclaimed. The
term "pollution incident" includes an "occurrence".
BOARD NOTE: Derived from the Insurance Services Office, Inc.
definition of this term. This definition is used in the definition of "property
damage".
"Property damage" means as follows:
Either of the following:
Physical injury to, destruction of, or contamination of
tangible property, including all resulting loss of use of that property;
or
Loss of use of tangible property that is not physically
injured, destroyed, or contaminated, but has been evacuated, withdrawn from
use, or rendered inaccessible because of a "pollution incident".
This term does not include those liabilities that, consistent
with standard insurance industry practices, are excluded from coverage in
liability insurance policies for property damage.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
definition of this term.
"Sudden accidental occurrence" means an occurrence that is
not continuous or repeated in nature.
h) "Substantial business relationship" means
the extent of a business relationship necessary under applicable state law to
make a guarantee contract issued incident to that relationship valid and
enforceable. A "substantial business relationship" must arise from a pattern of
recent or ongoing business transactions, in addition to the guarantee itself,
such that the Agency can reasonably determine that a substantial business
relationship currently exists between the guarantor and the owner or operator
that is adequate consideration to support the obligation of the guarantee
relating to any liability towards a third-party. "Applicable state law", as
used in this subsection (h), means the laws of the State of Illinois and those
of any sister state that govern the guarantee and the adequacy of the
consideration.