Section 25395.40 Of Article 8.7. California Financial Assurance And Insurance For Redevelopment Program From California Health And Safety Code >> Division 20. >> Chapter 6.8. >> Article 8.7.
25395.40
. For the purposes of this article, the following
definitions shall apply:
(a) "CLEAN Program" means the Cleanup Loans and Environmental
Assistance to Neighborhoods Program established pursuant to Section
25395.22.
(b) "Cost overrun insurance" means insurance that covers some, or
all of the response costs caused by a known pollution condition at a
site, that exceed the estimated response action costs that have been
accepted and approved by the insurer, based on information from the
department and other relevant sources at the time the insurance is
first obtained.
(1) Cost overrun insurance shall, at a minimum, provide for all of
the following:
(A) The response costs in excess of the estimated response action
costs that have been accepted and approved by the insurer.
(B) A policy period of sufficient length to cover the duration of
the response activities, not including post-completion operation and
maintenance.
(C) A self-insured retention amount not to exceed 25 percent of
the estimated response action costs that have been accepted and
approved by the insurer.
(c) "Eligible property" has the same meaning as defined in
paragraph (6) of subdivision (a) of Section 25395.20.
(d) "Environmental insurance" means insurance intended to limit
the liability associated with the discovery and cleanup of a
hazardous materials release, including secured creditor insurance,
pollution liability insurance, and cost overrun insurance, and any
other insurance product that the secretary selects to be provided
pursuant to Section 25395.41.
(e) "Estimated response action costs" means the projected costs of
taking a response action in implementing an approved removal action
work plan or remedial action plan prepared to address a pollution
condition at a site.
(f) "FAIR" means the Financial Assurance and Insurance for
Redevelopment Program created pursuant to this article.
(g) "Hazardous material" means a substance or waste that, because
of its physical, chemical, or other characteristics, may pose a risk
of endangering human health or safety or of degrading the
environment. "Hazardous material" includes, but is not limited to,
all of the following:
(1) A hazardous substance, as defined in Section 25281 or 25316,
including the substances specified in Section 25317.
(2) A hazardous waste, as defined in Section 25117.
(3) A waste, as defined in Section 101075, or as defined in
Section 13050 of the Water Code.
(h) "Insurance company" means an insurance company authorized in
California to offer environmental insurance and that has an A.M. Best
Financial Strength Rating of A+ or better and an A.M. Best Financial
Size Category of FSC X or larger.
(i) "Pollution condition" means a release or threatened release of
a hazardous material and any resulting impact upon the environment.
(j) (1) "Pollution liability insurance" means insurance that
covers damages caused by a pollution condition from, or at, a site
that is preexisting and unknown, or was otherwise unknown at the time
the insurance is first obtained, and, at a minimum, provides for all
of the following:
(A) A minimum policy period of five years after the completion of
remediation activities, not including post-completion operation and
maintenance.
(B) A duty to defend and pay for defense costs in an amount at
least up to the amount of coverage available under the policy,
irrespective of whether an administrative or judicial order requires
the insured to compensate any party or pay for the damages, so long
as there already exists a reasonably quantifiable legal obligation to
pay those damages.
(2) For purposes of this subdivision, "damages" means either of
the following:
(A) Property damage incurred at a site as an unforeseen and
unexpected result of a pollution condition.
(B) Bodily injury, property damage, and response action costs
sustained or incurred by a third party as a result of a pollution
condition at a site.
(3) For purposes of this subdivision, "damages" includes the
property damage, bodily injury, and response costs specified in
paragraph (2), irrespective of whether an administrative or judicial
order requires the insured to compensate any party or pay for the
property damage, bodily injury, or response costs, so long as there
exists a reasonably quantifiable legal obligation to pay for those
damages.
(k) "Secured creditor insurance" means insurance made available to
an insured that covers all of the following:
(1) Response costs at a site incurred by the lender after a
default by the borrower or foreclosure by the lender that occurs as a
result of a pollution condition at the site, and the costs are
reasonably necessary to remediate the site for its intended use so
that it can be sold.
(2) Damages or other liability for a pollution condition at a site
incurred by a lender as a result of that lender exercising a
foreclosure option.
(3) Loss or damages incurred by a lender as a result of a borrower'
s inability to satisfy a loan obligation or due to the existence of
an unforeseen and unexpected pollution condition.
(4) A duty to defend and pay for defense costs in an amount at
least up to the amount of coverage available under the policy,
irrespective of whether an administrative or judicial order requires
the insured to compensate any party or pay for the loss, damages, or
liability, so long as there exists a reasonably quantifiable legal
obligation to pay damages.
(l) "Self-insured retention amount" means response action costs in
excess of the estimated response action costs that have been
accepted and approved by the insurer that the insured is obligated to
pay before being eligible to make a claim of an insurer under a cost
overrun insurance policy.
(m) "Unforeseen and unexpected response action costs" means those
costs that exceed the estimated response action costs.