(b)

1. (1) No payment to any third party or to any owner or operator against whom a third-party claim is brought for compensatory damages shall be made from the trust fund until the owner or operator has expended the deductible amount on third-party claims for the occurrence, unless the owner or operator has been discharged under the United States Bankruptcy Code or is determined by a court to be insolvent.
2. (2) Proof of payment of the deductible must be provided to the Division of Environmental Quality prior to approval of a third-party claim for payment.

3. (3)

   1. (A) For purposes of meeting the deductible, proof of payment shall consist of a:

(i) Receipt;

1. (ii) Copy of a money order; or

   1. (iii) Canceled check.

   2. (B) An IOU, a conditional payment, an installment payment, or a down payment shall not be considered proof of payment.

      1. (c) Only third-party claims found to be reasonable and allowable shall be credited toward the deductible.