Text: SF02056 Text: SF02058 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 455G.11, subsection 4, paragraph g,
1 2 unnumbered paragraph 1, Code Supplement 1995, is amended to
1 3 read as follows:
1 4 For subsequent time periods, an owner or operator applying
1 5 for coverage shall pay an annually adjusted insurance premium
1 6 for coverage by the insurance account. The board may only
1 7 approve fund coverage through the payment of a premium
1 8 established on an actuarially sound basis. Risk factors,
1 9 including but not limited to the age of a tank and the
1 10 durability and quality of the tank lining, shall be taken into
1 11 account in establishing premiums. It is the intent of the
1 12 general assembly that an actuarially sound premium reflect the
1 13 risk to the insurance account presented by the insured. Risk
1 14 factor adjustments should reflect the range of risk presented
1 15 by the variety of tank systems, monitoring systems, and risk
1 16 management practices in the general insurable tank population.
1 17 Premium adjustments for risk factors should at minimum take
1 18 into account lifetime costs of a tank and monitoring system
1 19 and insurance account premiums for that tank system so as to
1 20 provide a positive economic incentive to the owner or operator
1 21 to install the more environmentally safe option so as to
1 22 reduce the exposure of the insurance account to loss.
1 23 Actuarially sound is not limited in its meaning to fund
1 24 premium revenue equaling or exceeding fund expenditures for
1 25 the general tank population.
1 26 EXPLANATION
1 27 This bill requires the consideration of the age of a tank
1 28 and the durability and quality of underground storage tank
1 29 linings as risk factors to take into account when establishing
1 30 actuarially sound premiums for underground storage tank
1 31 insurance.
1 32 LSB 3318XS 76
1 33 js/sc/14
Text: SF02056 Text: SF02058 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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