36.20.303    PERMIT APPLICATIONS - PROOF OF FINANCIAL RESPONSIBILITY

(1) Proof of financial responsibility shall be made by the applicant by showing to the satisfaction of the department that the applicant has the ability to respond in damages for liability which might result as a consequence of the intended operation. Such damages include, but are not limited to, losses from flood, lightning-induced fire, hail, or erosion, including those losses that develop after the operation is concluded. Such proof may be shown by:

(a) presenting to the department a prepaid insurance policy or a corporate surety bond, or proof of purchase thereof, in the amount of $10,000,000 and issued by a company against whom service of legal process may be made in Montana for liabilities resulting as a consequence of weather modification operations. This amount may be increased or decreased at the discretion of the department if greater or lesser liability could reasonably be attached to or result from the operation; or

(b) depositing cash or negotiable securities with the department in the amount of $10,000,000. This amount may be increased or decreased at the discretion of the department if greater or lesser liability could reasonably be attached to or result from the operation; or

(c) any other reasonable manner approved by the department.

(2) Cancellation of an insurance policy or corporate bond used to prove financial responsibility must be reported to the department immediately and the permit is automatically suspended upon the expiration of such insurance or bond. The permittee may request a hearing before the department or a designated hearings officer at any time before or after the suspension to prove that financial responsibility can be maintained by means in accordance with this rule. If the hearing is conducted by a designated hearings officer, the department may make a final decision by telephone conference call.

History: 85-3-206, MCA; IMP, 85-3-211, MCA; NEW, 1987 MAR p. 1561, Eff. 9/11/87; AMD, 1996 MAR p. 1159, Eff. 4/26/96.