Amendments to the Non-Admitted Carrier Requirements for Excess and Surplus Line Insurance

Summary

SCH Number
2023120298
Public Agency
Department of Toxic Substances Control
Document Title
Amendments to the Non-Admitted Carrier Requirements for Excess and Surplus Line Insurance
Document Type
NOE - Notice of Exemption
Received
Posted
12/11/2023
Document Description
The California Department of Toxic Substances Control (DTSC), pursuant to authority granted under California Health and Safety Code, Section 25200.21 was enacted into law as part of Senate Bill 673 (Stats. 2015, Chapter 611, Section 1, effective January 1, 2016). Section 25200.21 is part of the California Hazardous Waste Control Law (HWCL), Health and Safety Code Section 25100 and requires DTSC to adopt regulations establishing criteria used for the issuance of a hazardous waste facility permit or a permit modification, which may include criteria for the denial, suspension, or revocation of a permit. The proposed regulations amend the requirements of hazardous waste facilities that elect to use insurance as a financial mechanism in order to cover their closure, post-closure, corrective action, and third-party liability obligations. The proposed amendments change the requirement by permitting a non-admitted carrier licensed as an insurer in its domiciliary jurisdiction to issue excess or surplus line insurance not placed by and through a surplus lines broker that is currently licensed by the California Department of Insurance (CDI) if the carrier is listed on either the List of Approved Surplus Line Insurers (LASLI), the National Association of Insurance Commissioners’ (NAIC), International Insurers Department Quarterly Listing of Alien Insurers (IID List), and is a licensed insurer in their domiciliary jurisdiction. Furthermore, excess or surplus line insurance placed with a non-admitted carrier would no longer have to be placed by and through an excess or surplus line broker currently licensed by CDI. The proposed amendments would resolve the inconsistency by expanding the eligibility requirements and making non-admitted insurance carriers eligible to provide excess or surplus line insurance to hazardous waste facilities if the carriers are listed on either the LASLI or the IID List and are licensed in their domiciliary jurisdiction. Furthermore, DTSC believes the standards of LASLI and those of IID are fundamentally the same and that either standard would continue to ensure the environment and taxpayer liability is sufficiently protected. The proposed amendments to the regulations include amending Division 4.5 of Title 22 CCR sections 66264.143(e)(1)(B); 66264.145(e)(1)(B); 66264.147(a)(1)(A)2.; 66264.147(b)(1)(A)2.; the wording of instruments in sections 66264.151(e), 66264.151(i) and 66264.151(j); 66265.143(d)(1)(B); 66265.145(d)(1)(B); 66265.147(a)(1)(A)2.; and 66265.147(b)(1)2.

Contact Information

Name
Kevin Montevideo
Agency Name
DTSC
Job Title
Senior Environmental Scientist (Specialist)
Contact Types
Lead/Public Agency

Location

Regions
Countywide, Statewide
Other Information
Regulations Amendment

Notice of Exemption

Exempt Status
Categorical Exemption
Type, Section or Code
Categorical Exemption: [CCR Title 14 Sec. 15308].
Reasons for Exemption
DTSC has determined none of the exceptions to the categorical exemptions apply to this project, as described in Public Resources Code Section 21084(c), (d), and (e), and 14 CCR Section 15300.2. DTSC has determined that the proposed regulatory amendments are actions taken by DTSC to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.
County Clerks
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, Yolo, Yuba

Attachments

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