6714.1 Except as otherwise provided in this chapter, a provider of financial assurance may cancel or fail to renew an assurance mechanism by sending a notice of termination by certified mail (return receipt requested) to the owner.

6714.2 Termination of a guarantee, surety bond, or letter of credit may not occur until one hundred twenty (120) days after the date on which the owner receives the notice of termination, as evidenced by the return receipt.

6714.3 Termination of insurance or risk retention group coverage, except for non-payment or misrepresentation by the insured may not occur until sixty (60) days after the date on which the owner receives the notice of termination, as evidenced by the return receipt. Termination for non-payment of premium or misrepresentation by the insured may not occur until a minimum of ten (10) days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.

6714.4 The provider of financial assurance shall send a copy of each notice of cancellation or termination to the Director at the same time the notice is sent to the owner.

6714.5 If a provider of financial responsibility cancels or fails to renew for reasons other than the incapacity of the provider as specified in § 6701.7, the owner shall obtain alternate coverage as specified in this section within sixty (60) days after receipt of the notice of termination.

6714.6 If an owner fails to obtain alternate coverage within sixty (60) days after receipt of a notice of termination, the owner shall notify the Director of the failure and submit the following to the Director:

(a) The name and address of the provider of financial assurance;

(b) The effective date of termination; and

(c) The evidence of the financial assistance mechanism subject to the termination maintained in accordance with § 6702 of this chapter.

SOURCE: Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5781 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999).