(a) Except as otherwise provided, a provider of financial assurance
may cancel or fail to renew an assurance mechanism by sending a notice of
termination by certified mail to the owner or operator.
(b) Termination of a guarantee, a local government guarantee,
a surety bond, or a letter of credit may not occur until 120 days after the
date on which the owner or operator receives the notice of termination, as
evidenced by the return receipt.
(c) Termination of insurance or risk retention group coverage,
except for non-payment or misrepresentation by the insured, or state-funded
assurance may not occur until 60 days after the date on which the owner or
operator receives the notice of termination, as evidenced by the return receipt.
Termination for non-payment of premium or misrepresentation by the insured
may not occur until a minimum of ten days after the date on which the owner
or operator receives the notice of termination, as evidenced by the return
receipt.
(d) If a provider of financial assurance cancels or fails to
renew for reasons other than incapacity of the provider as specified in §37.870
of this title (relating to Reporting, Registration, and Certification), the
owner or operator must obtain alternate coverage as specified in this section
within 60 days after receipt of the notice of termination. If the owner or
operator fails to obtain alternate coverage within 60 days after receipt of
the notice of termination, the owner or operator must notify the executive
director of this failure and submit:
(1) the name and address of the provider of financial assurance;
(2) the effective date of termination; and
(3) the evidence of the financial assurance mechanism subject
to the termination maintained in accordance with §37.875(b) of this title
(relating to Financial Assurance Recordkeeping).
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