NR 664.0143(4)(j)(j) The department will authorize the release of the letter of credit when any of the following apply: NR 664.0143(4)(j)1.1. An owner or operator substitutes alternate financial assurance as specified in this section. NR 664.0143(4)(j)2.2. The department releases the owner or operator from the requirements of this section in accordance with sub. (11). NR 664.0143(5)(a)(a) An owner or operator may satisfy the requirements of this section by obtaining closure insurance which conforms to the requirements of this subsection and submitting a certificate of the insurance to the department. An owner or operator of a new facility shall submit the certificate of insurance to the department at least 60 days before the date on which hazardous waste is first received for treatment, storage or disposal. The insurance shall be effective before this initial receipt of hazardous waste. At a minimum, the insurer shall be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in one or more states. The department, after conferring with the Wisconsin insurance commissioner, shall determine the acceptability of a surplus lines or captive insurance company to provide coverage for proof of financial responsibility. The department shall ask the insurance commissioner to provide a financial analysis of the insurer including a recommendation as to the insurer’s ability to provide the required coverage. The department may require a periodic review of the acceptability of a surplus lines or captive insurance company. NR 664.0143(5)(c)(c) The closure insurance policy shall be issued for a face amount at least equal to the current closure cost estimate, except as provided in sub. (9). The term “face amount” means the total amount the insurer is obligated to pay under the policy. Actual payments by the insurer will not change the face amount, although the insurer’s future liability will be lowered by the amount of the payments. NR 664.0143(5)(d)(d) The closure insurance policy shall guarantee that funds will be available to close the facility whenever final closure occurs. The policy shall also guarantee that once final closure begins, the insurer will be responsible for paying out funds, up to an amount equal to the face amount of the policy, upon the direction of the department, to the party or parties as the department specifies. NR 664.0143(5)(e)(e) After beginning partial or final closure, an owner or operator or any other person authorized to conduct closure may request reimbursements for closure expenditures by submitting itemized bills to the department. The owner or operator may request reimbursements for partial closure only if the remaining value of the policy is sufficient to cover the maximum costs of closing the facility over its remaining operating life. Within 60 days after receiving bills for closure activities, the department will instruct the insurer to make reimbursements in the amounts as the department specifies in writing, if the department determines that the partial or final closure expenditures are in accordance with the approved closure plan or otherwise justified. If the department has reason to believe that the maximum cost of closure over the remaining life of the facility will be significantly greater than the face amount of the policy, the department may withhold reimbursements of the amounts as the department deems prudent until the department determines, in accordance with sub. (11), that the owner or operator is no longer required to maintain financial assurance for final closure of the facility. If the department does not instruct the insurer to make the reimbursements, the department will provide the owner or operator with a detailed written statement of reasons. NR 664.0143(5)(f)(f) The owner or operator shall maintain the policy in full force and effect until the department consents to termination of the policy by the owner or operator as specified in par. (j). Failure to pay the premium, without substitution of alternate financial assurance as specified in this section, will constitute a significant violation of this chapter, warranting a remedy as the department deems necessary. The violation will be deemed to begin upon receipt by the department of a notice of future cancellation, termination or failure to renew due to nonpayment of the premium, rather than upon the date of expiration. NR 664.0143(5)(g)(g) Each policy shall contain a provision allowing assignment of the policy to a successor owner or operator. The assignment may be conditional upon consent of the insurer, provided the consent is not unreasonably refused. NR 664.0143(5)(h)(h) The policy shall provide that the insurer may not cancel, terminate or fail to renew the policy unless a replacement insurance policy or other proof of financial responsibility under this section is provided to the department by the owner or operator. The automatic renewal of the policy shall, at a minimum, provide the insured with the option of renewal at the face amount of the expiring policy. If the insurer elects to cancel, terminate or fail to renew the policy, the insurer shall provide notice by certified mail to the owner or operator and the department not less than 120 days prior to the proposed cancellation date. Cancellation, termination or failure to renew may not occur, however, during the 120 days beginning with the date of receipt of the notice by both the department and the owner or operator, as evidenced by the return receipts. Cancellation, termination or failure to renew may not occur and the policy will remain in full force and effect in the event that on or before the date of expiration any of the following apply: NR 664.0143(5)(h)3.3. Closure is ordered by the department or a U.S. district court or other court of competent jurisdiction. NR 664.0143(5)(h)4.4. The owner or operator is named as debtor in a voluntary or involuntary bankruptcy proceeding under 11 USC. NR 664.0143(5)(i)(i) Whenever the current closure cost estimate increases to an amount greater than the face amount of the policy, the owner or operator, within 60 days after the increase, shall either cause the face amount to be increased to an amount at least equal to the current closure cost estimate and submit evidence of the increase to the department, or obtain other financial assurance as specified in this section to cover the increase. Whenever the current closure cost estimate decreases, the face amount may be reduced to the amount of the current closure cost estimate following written approval by the department. NR 664.0143(5)(j)(j) The department will give written consent to the owner or operator that the owner or operator may terminate the insurance policy when any of the following apply: NR 664.0143(5)(j)1.1. An owner or operator substitutes alternate financial assurance as specified in this section. NR 664.0143(5)(j)2.2. The department releases the owner or operator from the requirements of this section in accordance with sub. (11). NR 664.0143(6)(a)(a) An owner or operator of a disposal facility may use the net worth test to provide financial responsibility if all of the following are met: NR 664.0143(6)(a)1.1. Only a company that meets the definition in s. 289.41 (1) (b), Stats., may use the net worth method of providing proof of financial responsibility. NR 664.0143(6)(a)2.2. The owner or operator shall comply with the net worth test requirements of s. 289.41 (4), (6) and (7), Stats., and the minimum security requirements of s. 289.41 (9), Stats., whichever are applicable. The updated net worth test information required under s. 289.41 (4), Stats., shall be submitted annually to the department within 90 days after the close of the company’s fiscal year. NR 664.0143(6)(b)(b) For companies with more than one facility, the total cost of compliance for all facilities shall be used to determine the net worth to closure and long-term care cost ratio. NR 664.0143(7)(7) Closure deposit with the department. An owner may deposit cash, certificates of deposit or U.S. government securities with the department. The deposit must be accompanied by a signed duplicate original of Form 4430-028 as specified in s. NR 664.0151 (14). The amount of the deposit shall be determined according to s. NR 664.0142. Cash deposits placed with the department shall be segregated and invested in an interest bearing account. All interest payments shall be accumulated in the account. The department shall have the right to use part or all of the funds to carry out the closure requirements of the approved closure plan or the applicable requirements in s. NR 664.0112 if the owner fails to do so. NR 664.0143(8)(a)(a) An owner or operator may satisfy the requirements of this section by establishing a closure escrow account which conforms to the requirements of this subsection and submitting an originally signed duplicate of the escrow agreement to the department. An owner or operator of a new facility shall submit the originally signed duplicate of the escrow agreement to the department at least 60 days before the date on which hazardous waste is first received for treatment, storage or disposal. The escrow agent shall be an entity which has the authority to act as an escrow agent, and the escrow account shall be established with a bank or financial institution which is examined and regulated by the state or a federal agency.