NR 664.0145(3)(f)(f) The penal sum of the bond shall be in an amount at least equal to the current long-term care cost estimate.
NR 664.0145(3)(g)(g) Whenever the current long-term care cost estimate increases to an amount greater than the penal sum during the operating life of the facility, the owner or operator, within 60 days after the increase, shall either cause the penal sum to be increased to an amount at least equal to the current long-term care cost estimate and submit evidence of the increase to the department, or obtain other financial assurance as specified in this section. Whenever the current long-term care cost estimate decreases during the operating life of the facility, the penal sum may be reduced to the amount of the current long-term care cost estimate following written approval by the department.
NR 664.0145(3)(h)(h) During the period of long-term care, the department may approve a decrease in the penal sum if the owner or operator demonstrates to the department that the amount exceeds the remaining cost of long-term care.
NR 664.0145(3)(i)(i) Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the department. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the department, as evidenced by the return receipts. Not less than 30 days prior to the expiration of the 120 day notice period, the owner shall deliver to the department a replacement bond or other proof of financial responsibility under this section, in the absence of which all storage, treatment or disposal operations shall immediately cease and the bond shall remain in effect as long as any obligation of the owner remains for long-term care.
NR 664.0145(3)(j)(j) The owner or operator may cancel the bond if the department has given prior written consent. The department will provide written consent when any of the following apply:
NR 664.0145(3)(j)1.1. An owner or operator substitutes alternate financial assurance as specified in this section.
NR 664.0145(3)(j)2.2. The department releases the owner or operator from the requirements of this section in accordance with sub. (11).
NR 664.0145(3)(k)(k) The surety will not be liable for deficiencies in the performance of long-term care by the owner or operator after the department releases the owner or operator from the requirements of this section in accordance with sub. (11).
NR 664.0145(4)(4)Long-term care letter of credit.
NR 664.0145(4)(a)(a) An owner or operator may satisfy the requirements of this section by obtaining an irrevocable letter of credit which conforms to the requirements of this subsection and submitting the letter to the department. An owner or operator of a new facility shall submit the letter of credit to the department at least 60 days before the date on which hazardous waste is first received for disposal. The letter of credit shall be effective before this initial receipt of hazardous waste. The issuing institution shall be an entity which has the authority to issue letters of credit and whose letter-of-credit operations are regulated and examined by a federal or state agency.
NR 664.0145(4)(b)(b) The wording of the letter of credit shall be identical to the wording on the department form specified in s. NR 664.0151 (4).
NR 664.0145(4)(d)(d) The letter of credit shall be accompanied by a letter from the owner or operator referring to the letter of credit by number, issuing institution and date, and providing the following information: the EPA identification number, name and address of the facility, and the amount of funds assured for long-term care of the facility by the letter of credit.
NR 664.0145(4)(e)(e) The letter of credit shall be irrevocable and issued for a period of at least one year. The letter of credit shall provide that the expiration date will be automatically extended for a period of at least one year unless, at least 120 days before the current expiration date, the issuing institution notifies both the owner or operator and the department by certified mail of a decision not to extend the expiration date. Under the terms of the letter of credit, the 120 days will begin on the date when both the owner or operator and the department have received the notice, as evidenced by the return receipts.
NR 664.0145(4)(f)(f) The letter of credit shall be issued in an amount at least equal to the current long-term care cost estimate, except as provided in sub. (9).
NR 664.0145(4)(g)(g) Whenever the current long-term care cost estimate increases to an amount greater than the amount of the credit during the operating life of the facility, the owner or operator, within 60 days after the increase, shall either cause the amount of the credit to be increased so that it at least equals the current long-term care 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 long-term care cost estimate decreases during the operating life of the facility, the amount of the credit may be reduced to the amount of the current long-term care cost estimate following written approval by the department.
NR 664.0145(4)(h)(h) During the period of post-closure care, the department may approve a decrease in the amount of the letter of credit if the owner or operator demonstrates to the department that the amount exceeds the remaining cost of long-term care.
NR 664.0145(4)(i)(i) Following a determination by the department that the owner or operator has failed to perform long-term care in accordance with the approved long-term care plan and other license requirements, the department may draw on the letter of credit.
NR 664.0145(4)(j)(j) If the owner or operator does not establish alternate financial assurance as specified in this section and obtain written approval of the alternate assurance from the department within 90 days after receipt by both the owner or operator and the department of a notice from the issuing institution that it has decided not to extend the letter of credit beyond the current expiration date, the department will draw on the letter of credit. The department may delay the drawing if the issuing institution grants an extension of the term of the credit. During the last 30 days of any extension the department will draw on the letter of credit if the owner or operator has failed to provide alternate financial assurance as specified in this section and obtain written approval of the assurance from the department.
NR 664.0145(4)(k)(k) The department will authorize the release of the letter of credit when any of the following apply:
NR 664.0145(4)(k)1.1. An owner or operator substitutes alternate financial assurance as specified in this section.
NR 664.0145(4)(k)2.2. The department releases the owner or operator from the requirements of this section in accordance with sub. (11).
NR 664.0145(5)(5)Long-term care insurance.
NR 664.0145(5)(a)(a) An owner or operator may satisfy the requirements of this section by obtaining long-term care 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 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 664.0145(5)(b)(b) The wording of the certificate of insurance shall be identical to the wording on the department form specified in s. NR 664.0151 (5).
NR 664.0145(5)(c)(c) The long-term care insurance policy shall be issued for a face amount at least equal to the current long-term care cost estimate, except as provided 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 664.0145(5)(d)(d) The long-term care insurance policy shall guarantee that funds will be available to provide long-term care of the facility whenever the long-term care period begins. The policy shall also guarantee that once long-term care 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 664.0145(5)(e)(e) An owner or operator or any other person authorized to conduct long-term care may request reimbursements for long-term care expenditures by submitting itemized bills to the department. Within 60 days after receiving bills for long-term care activities, the department will instruct the insurer to make reimbursements in those amounts as the department specifies in writing, if the department determines that the long-term care expenditures are in accordance with the approved long-term care plan or otherwise justified. 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 664.0145(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. (k). 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 664.0145(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.