1. (a) Except as otherwise provided in § 22232, a provider of financial assurance may cancel or not renew a financial assurance mechanism by sending a notice of termination by certified mail to the operator, and CalRecycle.

   1. (1) Termination of a letter of credit, a surety bond, an insurance policy, or a guarantee shall not occur until 120 days after the date on which the operator and CalRecycle have received the notice of termination, as evidenced by the return receipts.
   2. (2) If a provider of financial assurance cancels or fails to renew a mechanism for reasons other than its bankruptcy or incapacity, the operator shall obtain alternate coverage within 60 days after receiving the notice of termination. If the operator fails to obtain alternate coverage within the 60 days, the operator shall notify CalRecycle of such failure.

2. (b) The closure and/or postclosure maintenance and/or reasonably foreseeable corrective action costs insurance policy, issued in accordance with § 22248, shall provide that the insurer may not cancel, terminate or fail to renew the policy except for 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. If there is a failure to pay the premium, the insurer may cancel the policy by sending notice of cancellation by certified mail to the operator, and CalRecycle 120 days in advance of cancellation. If the insurer cancels the policy, the operator must obtain alternate financial assurance as specified in § 22228. If the operator fails to demonstrate alternate financial assurance as specified in § 22228 within 60 days after receiving the notice of termination, CalRecycle may allow the insurer an extension to the term of the insurance policy for a period of time shorter than one year. Cancellation, termination, or failure to renew will not occur and the policy will remain in full force and effect in the event that on or before the date of expiration:

   1. (1) CalRecycle or EA deems the disposal facility abandoned; or
   2. (2) The permit is terminated or revoked or a new permit is denied by CalRecycle or EA; or
   3. (3) Partial or complete closure, postclosure maintenance, or corrective action is ordered by CalRecycle, EA, RWQCB, other government entity, or court of competent jurisdiction; or
   4. (4) The operator is named as a debtor in a voluntary or involuntary proceeding under Title 11 (Bankruptcy) U.S. Code; or
   5. (5) All delinquent premium payments have been brought current.
3. (c) Cancellation or nonrenewal of third party operating liability insurance or self-insurance and risk management for third party operating liability coverage shall occur no less than 60 days after the date on which the operator, and CalRecycle have received the notice of termination, as evidenced by the return receipts; except in the case of non-payment of insurance premiums, in which case cancellation shall occur no less than 10 days after the date on which the operator, and CalRecycle have received the notice of termination.

Note: Authority cited: Sections 40502 and 43040, Public Resources Code. Reference: Sections 43040, 43103 and 43500-43610, Public Resources Code.

History

1. New section filed 6-18-97; operative 7-18-97 (Register 97, No. 25).

2. Amendment of section heading and section filed 4-9-2010; operative 7-1-2010 (Register 2010, No. 15).