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25 Pa. Code § 271.378. Self-insurance.

§ 271.378. Self-insurance.

 (a)  An applicant which is a municipality or municipal authority may self-insure by meeting the requirements of this subsection and subsections (b)—(f). The applicant may appropriate funds to establish a reserve to meet the requirements of §  271.371 (relating to insurance requirement). Funds so appropriated shall be placed in a special account, separate and distinct from all other funds and accounts, for the sole purpose of paying ordinary public liability claims to third parties for damage arising from the applicant’s operation of a municipal waste processing or disposal facility.

 (b)  An applicant’s self-insurance program shall provide procedures the applicant will make available to the public for processing claims filed for property damage and bodily injury. The procedures shall contain, at a minimum, the following:

   (1)  An initial contact point for claims information or the filing of a claim, located at each of the applicant’s self-insured facilities.

   (2)  A mechanism to provide to a claimant necessary information to pursue the claim, including the information required of a claimant to document proof of loss.

   (3)  A mechanism for the acknowledgement of notification of a claim, in writing, within a reasonable time.

   (4)  A reasonable time for investigation of a claim with a referral mechanism to inform a claimant if the investigation cannot be completed within the initial investigation period.

   (5)  A reasonable time for acceptance or denial of a claim. A denial shall state the specific reasons for the denial.

   (6)  A mechanism for a claimant to challenge a denial of a claim.

 (c)  The applicant may not be self-insured until the applicant has appropriated and placed in a special account, an amount of $1 million. A minimum of $1 million shall be continuously maintained in the account, and may not be reduced by the payment of claims.

 (d)  The applicant shall provide the Department with a copy of the resolution or ordinance making the appropriation funding self-insurance and establishing the special account.

 (e)  An applicant may comply with this section by utilizing an existing self-insurance reserve, if the applicant can demonstrate to the satisfaction of the Department, that the existing self-insurance reserve contains an amount of $1 million dedicated solely for the purpose of satisfying ordinary public liability claims to third parties for damages arising from the operation of the applicant’s municipal waste processing or disposal facility and the applicant has in place the procedures required by subsection (b).

 (f)  An applicant may cancel or otherwise terminate the self-insurance coverage by sending a written notice of the termination or cancellation, by certified mail, to the Department. The cancellation or termination may not take effect until 60 days of receipt of the notice to cancel or terminate by the Department, as evidenced by the return receipts.

 (g)  An applicant which is not a municipality or municipal authority may self-insure to meet the requirements of §  271.371 by complying with § §  267.52—267.58 (Reserved).


   The provisions of this §  271.378 adopted September 13, 1991, effective September 14, 1991, 21 Pa.B. 4179.

Cross References

   This section cited in 25 Pa. Code §  271.371 (relating to insurance requirement).

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