Text: SSB02123 Text: SSB02125 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 455G.2, Code 1997, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 12A. "Insurance board" means the Iowa 1 4 underground storage tank insurance board created under section 1 5 455G.11. 1 6 Sec. 2. Section 455G.4, Code 1997, is amended by adding 1 7 the following new subsection: 1 8 NEW SUBSECTION. 6. INSURANCE ACCOUNT. By July 1, 2004, 1 9 the board shall transfer all assets and liabilities of the 1 10 insurance account created in section 455G.11 to the insurance 1 11 board when restructured as an independent nonprofit entity 1 12 organized to provide an allowable mechanism to demonstrate 1 13 financial responsibility as required by 40 C.F.R. pts. 280 and 1 14 281, owned and operated by insureds, through a transition 1 15 process as recommended by the insurance board. 1 16 Sec. 3. Section 455G.11, subsections 3 through 6, Code 1 17 1997, are amended to read as follows: 1 18 3. ELIGIBILITY OF OWNERS AND OPERATORS FOR INSURANCE 1 19 ACCOUNT COVERAGE. An owner or operator, subject to under- 1 20 writing requirements and such terms and conditions deemed 1 21 necessary and convenient by the board, may purchase insurance 1 22 coverage from the insurance account to provide proof of 1 23 financial responsibility provided that a tank to be insured 1 24 satisfies one of the following conditions: 1 25 a. Satisfies performance standards for new underground 1 26 storage tank systems as specified by the federal environmental 1 27 protection agency in 40 C.F.R. } 280.20, as amended through 1 28 January 1, 1989. 1 29 b. Has satisfied on or before the date of the application 1 30 standards for upgraded underground storage tank systems as 1 31 specified by the federal environmental protection agency in 40 1 32 C.F.R. } 280.21, as amended through January 1, 1989. 1 33c. The applicant certifies in writing to the board that1 34the tank to be insured will be brought into compliance with1 35either paragraph "a" or "b", on or before December 22, 1998,2 1provided that prior to the provision of insurance account2 2coverage, the tank site tests release free. An owner or2 3operator who fails to comply as certified to the board on or2 4before December 22, 1998, shall not insure that tank through2 5the insurance account unless and until the tank satisfies the2 6requirements of paragraph "a" or "b". An owner or operator2 7who fails to comply with either paragraph "a" or "b" by2 8October 26, 1993, or who fails to enter into a contract on or2 9before October 26, 1993, which, upon completion, will bring2 10the owner or operator into compliance with either paragraph2 11"a" or "b" by December 22, 1998, may be eligible for financial2 12assurance under this section but shall be subject to an2 13additional surcharge of eight hundred dollars per tank in2 14addition to payment of a premium that is equal to two times2 15the cost of the premium required under subsection 4, paragraph2 16"g", per insured time period.2 17d. The applicant either:2 18(1) Is maintaining financial responsibility pursuant to2 19current or previously applicable federal or state financial2 20responsibility requirements on petroleum underground storage2 21tanks within the state.2 22(2) Complies with the applicable following date for2 23financial responsibility:2 24(a) On or before April 26, 1990, for a petroleum marketing2 25firm owning at least thirteen, but no more than ninety-nine2 26petroleum underground storage tanks.2 27(b) On or before October 26, 1990, for an owner or2 28operator not described in subparagraph subdivision (a), and2 29not currently or previously required to maintain financial2 30responsibility by federal or state law on tanks within the2 31state.2 324. ACTUARIALLY SOUND PREMIUMS BASED ON RISK FACTOR2 33ADJUSTMENTS AFTER FIVE YEARS. The annual premium for2 34insurance coverage shall be:2 35a. For the year July 1, 1989, through June 30, 1990, one3 1hundred dollars per tank.3 2b. For the year July 1, 1990, through June 30, 1991, one3 3hundred fifty dollars per tank.3 4c. For the year July 1, 1991, through June 30, 1992, two3 5hundred dollars per tank.3 6d. For the year July 1, 1992, through June 30, 1993, two3 7hundred fifty dollars per tank.3 8e. For the year July 1, 1993, through June 30, 1994, in3 9accordance with the following:3 10(1) For a tank satisfying subsection 3, paragraph "a" or3 11"b", three hundred dollars per tank.3 12(2) For a tank qualifying under subsection 3, paragraph3 13"c", six hundred dollars per tank.3 14f. For the period from July 1, 1994, through December 31,3 151994, in accordance with the following:3 16(1) For a tank satisfying subsection 3, paragraph "a" or3 17"b", three hundred fifty dollars per tank.3 18(2) For a tank qualifying under subsection 3, paragraph3 19"c", seven hundred dollars per tank.3 20 c. Is in compliance with all technical requirements of the 3 21 department. 3 22 4. INSURANCE ACCOUNT PREMIUMS. 3 23g. For subsequent time periods, anAn owner or operator 3 24 applying for coverage shall pay an annually adjusted insurance 3 25 premium for coverage by the insurance account. The board may 3 26 only approve fund coverage through the payment of a premium 3 27 established on an actuarially sound basis. Risk factors shall 3 28 be taken into account in establishing premiums. It is the 3 29 intent of the general assembly that an actuarially sound 3 30 premium reflect the risk to the insurance account presented by 3 31 the insured. Risk factor adjustments should reflect the range 3 32 of risk presented by the variety of tank systems, monitoring 3 33 systems, and risk management practices in the general 3 34 insurable tank population. Premium adjustments for risk 3 35 factors should at minimum take into account lifetime costs of 4 1 a tank and monitoring system and insurance account premiums 4 2 for that tank system so as to provide a positive economic 4 3 incentive to the owner or operator to install the more 4 4 environmentally safe option so as to reduce the exposure of 4 5 the insurance account to loss. Actuarially sound is not 4 6 limited in its meaning to fund premium revenue equaling or 4 7 exceeding fund expenditures for the general tank population. 4 8Tanks receiving financial assurance pursuant to subsection4 93, paragraph "c", shall not be included in the general tank4 10population for purposes of determining actuarially sound4 11premiums under this paragraph.4 12 If coverage is purchased for any part of a year the 4 13 purchaser shall pay the full annual premium. 4 14h.The insurance account may offer, at the buyer's option, 4 15 a range of deductibles. A ten thousand dollar deductible 4 16 policy shall be offered. 4 17 5. FUTURE REPEAL. The future repeal of this section shall 4 18 not terminate the following obligations or authorities 4 19 necessary to administer the obligations until these 4 20 obligations are satisfied: 4 21 a. The payment of claims filed prior to the effective date 4 22 of any future repeal, against the insurance account until 4 23 moneys in the account are exhausted. Upon exhaustion of the 4 24 moneys in the account, any remaining claims shall be invalid. 4 25 b. The resolution of a cost recovery action filed prior to 4 26 the effective date of the repeal. 4 27 6. INSTALLER'S AND INSPECTOR'S INSURANCE COVERAGE. 4 28 a. COVERAGE. The boardshallmay offer insurance coverage 4 29 under the fund's insurance account to installers and 4 30 inspectors of certified underground storage tank installations 4 31 within the state for an environmental hazard arising in 4 32 connection with a certified installation as provided in this 4 33 subsection. Coverage shall be limited to environmental hazard 4 34 coverage for both corrective action and third-party liability 4 35 for a certified tank installation within the state in 5 1 connection with a release from that tank. 5 2 b. ANNUAL PREMIUMS. The annual premium shall be: 5 3 (1) For the year July 1, 1991, through June 30, 1992, two 5 4 hundred dollars per insured tank. 5 5 (2) For the year July 1, 1992, through June 30, 1993, two 5 6 hundred fifty dollars per insured tank. 5 7 (3) For the year July 1, 1993, through June 30, 1994, 5 8 three hundred dollars per insured tank. 5 9 (4) For the period from July 1, 1994, through December 31, 5 10 1994, three hundred fifty dollars per insured tank. 5 11 (5) For subsequent time periods, installers and inspectors 5 12 shall pay an annually adjusted insurance premium to maintain 5 13 coverage on each tank previously installed or newly insured by 5 14 the insurance account. The board may only approve fund 5 15 coverage through the payment of a premium established on an 5 16 actuarially sound basis. The premium paid shall be fully 5 17 earned and is not subject to refund or cancellation. If 5 18 coverage is purchased for any part of a year the purchaser 5 19 shall pay the full annual premium. 5 20 (6) The board may offer coverage at rates based on sales 5 21 if the qualifying installer or inspector cannot be rated on a 5 22 per tank basis, or if the work the installer or inspector 5 23 performs involves more than tank installation. The rates to 5 24 develop premiums shall be based on the premium charged per 5 25 tank under subparagraphs (1), (2), (3), and (4). 5 26 c. LIMITS OF COVERAGE AVAILABLE. Installers and 5 27 inspectors may purchase coverage up to one million dollars per 5 28 occurrence and two million dollars aggregate, subject to the 5 29 terms and conditions under this section and those adopted by 5 30 the board. 5 31 d. DEDUCTIBLE. The insurance account may offer, at the 5 32 buyer's option, a range of deductibles. A ten thousand dollar 5 33 deductible policy shall be offered. 5 34 e. EXCESS COVERAGE. Installers and inspectors may 5 35 purchase excess coverage of up to five million dollars upon 6 1 such terms and conditions as determined by the board. 6 2 f. CERTIFICATION OF TANK INSTALLATIONS. The board shall 6 3 adopt certification rules requiring certification of a new 6 4 tank installation as a precondition to offering insurance to 6 5 an owner or operator or an installer or inspector. The board 6 6 shall set in the rule the effective date for the certification 6 7 requirement. Certification rules shall at minimum require 6 8 that an installation be personally inspected by an independent 6 9 licensed engineer, local fire marshal, state fire marshal's 6 10 designee, or other person who is unaffiliated with the tank 6 11 owner, operator, installer or inspector, who is qualified and 6 12 authorized by the board to perform the required inspection and 6 13 that the tank and installation of the tank comply with 6 14 applicable technical standards and manufacturer's instructions 6 15 and warranty conditions. An inspector may be an owner or 6 16 operator of a tank, or an employee of an owner, operator, or 6 17 installer. 6 18 g. The board may cease offering insurance coverage under 6 19 this subsection if the board determines that competitive 6 20 private market alternatives exist. 6 21 Sec. 4. Section 455G.11, subsection 10, Code 1997, is 6 22 amended by striking the subsection. 6 23 Sec. 5. Section 455G.11, subsection 11, Code 1997, is 6 24 amended to read as follows: 6 2511.10. LIMITATIONS ON THIRD-PARTY LIABILITY. To the 6 26 extent that coverage under this section includes third-party 6 27 liability, third-party liability specifically excludes any 6 28 claim, cause of action, or suit, for personal injury 6 29 including, but not limited to, loss of use or of private 6 30 enjoyment, mental anguish, false imprisonment, wrongful entry 6 31 or eviction, humiliation, discrimination, or malicious 6 32 prosecution. 6 33 Sec. 6. NEW SECTION. 455G.11A UNDERGROUND STORAGE TANK 6 34 INSURANCE FUND – BOARD. 6 35 1. UNDERGROUND STORAGE TANK INSURANCE FUND. 7 1 a. The Iowa underground storage tank insurance fund is 7 2 created as a separate fund in the state treasury. 7 3 Notwithstanding section 8.33, moneys remaining in the fund 7 4 at the end of each fiscal year shall not revert to the general 7 5 fund but shall remain in the underground storage tank 7 6 insurance fund. Notwithstanding section 12C.7, interest or 7 7 earnings on moneys in the fund shall be credited to the fund 7 8 in addition to any other income specifically allocated to the 7 9 underground storage tank insurance fund. The underground 7 10 storage tank insurance fund shall include the following: 7 11 (1) Moneys credited to the fund under this section. 7 12 (2) Moneys credited to the fund from the Iowa 7 13 comprehensive petroleum underground storage tank fund. 7 14 (3) Moneys appropriated to the fund for the purposes 7 15 provided in this section. 7 16 b. Amounts in the underground storage tank insurance fund 7 17 shall not be subject to appropriation for any purpose by the 7 18 general assembly, but shall be used only for the purposes set 7 19 forth in this section. The treasurer of state shall act as 7 20 custodian of the fund and disperse moneys contained in it as 7 21 directed by the insurance board. The treasurer of state is 7 22 authorized to invest the moneys deposited in the fund at the 7 23 discretion of the board. The income from such investments 7 24 shall be credited to and deposited in the fund. The fund 7 25 shall be administered by the insurance board which shall make 7 26 expenditures from the fund consistent with the purposes of the 7 27 programs provided for in this chapter without further 7 28 appropriation. 7 29 c. No later than July 1, 2004, all moneys in the fund 7 30 shall be transferred to the insurance board when restructured 7 31 as an independent nonprofit entity organized to provide an 7 32 allowable mechanism to demonstrate financial responsibility as 7 33 required in 40 C.F.R. pts. 280 and 281, owned and operated by 7 34 insureds, as determined by the comprehensive petroleum 7 35 underground storage tank fund board. 8 1 2. UNDERGROUND STORAGE TANK INSURANCE BOARD. 8 2 a. The underground storage tank insurance board is 8 3 established and shall consist of the following members: 8 4 (1) The treasurer of state or the treasurer of state's 8 5 designee serving for a two-year term. 8 6 (2) The auditor of state or the auditor's designee serving 8 7 for a three-year term. 8 8 (3) A representative of a governmental subdivision which 8 9 owns an underground storage tank system which is insured 8 10 through the insurance account and was insured through the 8 11 insurance account of the comprehensive petroleum underground 8 12 storage tank fund beginning on or before October 26, 1990, 8 13 appointed by the governor and serving a six-year term. 8 14 (4) Two owners or operators appointed by the governor who 8 15 have been petroleum systems insureds through the insurance 8 16 account and were insured through the insurance account of the 8 17 comprehensive petroleum underground storage tank fund on or 8 18 before October 26, 1990. The insurance board members 8 19 appointed under this subparagraph shall serve a term of six 8 20 years and shall be eligible to serve subsequent terms pursuant 8 21 to paragraph "b". 8 22 b. After the initial terms served by the insurance board 8 23 members designated in paragraph "a", subparagraphs (1), (2), 8 24 and (4), all subsequent insurance board members shall be a 8 25 part of and elected by the population of private insureds who 8 26 have been petroleum systems insureds through the underground 8 27 storage tank insurance fund and were insured through the 8 28 insurance account of the comprehensive petroleum underground 8 29 storage tank fund on or before October 26, 1990. The 8 30 subsequent insurance board members elected pursuant to this 8 31 paragraph shall serve for three-year terms and are eligible to 8 32 serve an unlimited number of terms. 8 33 c. Members of the insurance board are entitled to receive 8 34 reimbursement of actual expenses incurred in the discharge of 8 35 their duties within the limits of the moneys appropriated to 9 1 the insurance board or made available to the fund. 9 2 d. Members of the insurance board shall elect a voting 9 3 chairperson from among the members who are privately insured 9 4 owners and operators. 9 5 3. Prior to the restructuring of the insurance board as an 9 6 independent nonprofit entity, the insurance board shall 9 7 provide information to the comprehensive petroleum underground 9 8 storage tank fund board as follows: 9 9 a. Relating to rules, practices, procedures, underwriting 9 10 criteria, premium determinations, procedures for investigating 9 11 and settling claims, determining appropriate deductibles, 9 12 benefits offered, and otherwise implementing and administering 9 13 the underground storage tank insurance fund. 9 14 b. Confirming that the insurance board has established a 9 15 process to independently provide the following: 9 16 (1) Long-term insurability based upon competitive rates 9 17 for insureds who are in compliance with technical regulatory 9 18 requirements. 9 19 (2) Elimination of any lapse in coverage between state 9 20 insurance coverage and private insurance coverage. 9 21 (3) Ease in transition from state underwriting criteria, 9 22 application process, claims handling, and premium 9 23 determinations. 9 24 (4) Participation of insureds in establishing 9 25 underwriting, application, claims, and premium determinations. 9 26 (5) Continued approval as an acceptable financial 9 27 assurance mechanism as required in 40 C.F.R. pts. 280 and 281. 9 28 c. Determining a date specific upon which all assets and 9 29 liabilities of the insurance account of the comprehensive 9 30 petroleum underground storage tank fund will be transferred to 9 31 the insurance board as an independent nonprofit entity 9 32 organized to provide an allowable mechanism to provide 9 33 financial responsibility as required by 40 C.F.R. pts. 280 and 9 34 281, owned and operated by insureds, on or before July 1, 9 35 2004. 10 1 EXPLANATION 10 2 This bill creates an underground storage tank insurance 10 3 fund. The treasurer of state shall act as the custodian of 10 4 the fund and the fund shall be administered by the underground 10 5 storage tank insurance board. By July 1, 2004, the insurance 10 6 board shall receive all the assets and liabilities of the 10 7 insurance account of the comprehensive petroleum underground 10 8 storage tank fund when the insurance board is restructured as 10 9 an independent nonprofit entity. By July 1, 2004, the 10 10 insurance board shall also receive moneys in the underground 10 11 storage tank insurance fund when the insurance board is 10 12 restructured as an independent nonprofit entity. 10 13 The insurance board shall consist of five members. The 10 14 insurance board shall provide information to the comprehensive 10 15 petroleum underground storage tank fund board relating to all 10 16 of the following: 10 17 1. Rules, practices, and procedures for implementing and 10 18 administering the insurance fund. 10 19 2. Confirming the insurance board has established a 10 20 process to independently provide long-term insurability based 10 21 upon competitive rates; eliminate any lapse in coverage; 10 22 provide ease in transition; allow participation of insureds in 10 23 establishing the rules, practices, and procedures; and 10 24 continue approval as an acceptable financial assurance 10 25 mechanism as required by federal law. 10 26 3. The determination of a date certain upon which all 10 27 assets and liabilities of the insurance account to the 10 28 insurance board once the insurance board is an independent 10 29 nonprofit entity. 10 30 The bill updates one of the alternative conditions for 10 31 owners and operators to receive insurance account coverage to 10 32 require compliance with all technical requirements of the 10 33 department. The bill also updates a provision relating to 10 34 actuarially sound premiums. 10 35 The bill amends provisions relating to installer's and 11 1 inspector's insurance coverage. Currently, the board is 11 2 required to provide such coverage. The bill amends this 11 3 requirement to make it optional. The bill also allows the 11 4 board to choose to cease offering installer's and inspector's 11 5 insurance coverage if the board determines that competitive 11 6 private market alternatives exist. 11 7 The bill removes the availability of property transfer 11 8 insurance under Code section 455G.11(10). 11 9 Pursuant to 1989 Iowa Acts, chapter 131, section 61, Code 11 10 section 455G.11 shall be repealed effective July 1, 2004. 11 11 LSB 3671XC 77 11 12 tm/jw/5
Text: SSB02123 Text: SSB02125 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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