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25 Pa. Code § 271.389. Self-insurance—municipalities and municipal authorities.

§ 271.389. Self-insurance—municipalities and municipal authorities.

 (a)  An applicant which is a municipality or a municipal authority may self-insure by appropriating funds to establish a reserve to meet the requirements §  271.381 (relating to financial assurances requirements). Funds so appropriated shall be placed in a special account, separate and distinct from other funds and accounts, for the sole purpose of paying claims to third parties for bodily injury and property damage caused by or relating to pollution occurrences arising from the applicant’s operation of a municipal waste landfill or resource recovery 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 a claimant necessary information to pursue the claim, including the information required of a claimant to document proof of loss.

   (3)  A mechanism to acknowledge notification of a claim, in writing, within a reasonable time.

   (4)  A reasonable period of 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 period of time for acceptance or denial of a claim. 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 $2 million.

 (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 $2 million dedicated solely for the purpose of satisfying claims to third parties for bodily injury and property damage from sudden and nonsudden accidental pollution occurrences arising from the operation of the municipal waste landfill or resource recovery facility.

 (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.


   The provisions of this §  271.389 adopted September 13, 1991, effective September 14, 1991, 21 Pa.B. 4179.

Cross References

   This section cited in 25 Pa. Code §  271.382 (relating to forms of financial assurances—municipalities and municipal authorities).

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