HAR §13-183-35. Liability insurance

(a) Prior to entry upon the leased lands, lessee or lessee's assignee, sublessee, or transferee shall cause to be secured and to be thereafter maintained in force during the term of the lease, public liability and property damage insurance from an insurance company licensed to do business in the State in amounts to be determined by the board and stated in the geothermal lease for injuries to persons, wrongful death, and damages to property caused by any occupancy, use, operations, or any other activity on leased lands 21 carried on by lessee, or lessee's assignee, sublessee, or transferee, and its agents or contractors in connection therewith. Liability coverage for explosion, collapse, and underground hazards are to be included prior to any drilling of a well for geothermal discovery, evaluation, or production. Lessee shall evidence the additional coverage to the chairperson prior to initiation of drilling operations. If the land surface and improvements thereon covered by the lease have been sold or leased by the State to a person other than the lessee, the owner or lessee of surface rights and improvements shall be a named insured. The State, any owner, and any lessee of surface rights and improvements shall be a named insured in all instances. These policy or policies of liability insurance shall contain the following special endorsement: "The State of Hawaii, the Hawaii State Board of Land and Natural Resources, the Chairperson of the Board of Land and Natural Resources, the Department of Land and Natural Resources, and (herein insert name of owner or lessee of surface rights, if applicable) and the officers, employees and agents of each and every of the foregoing (hereinafter referred to as "named insureds") are insureds under the terms of this policy; provided, however, said insureds shall not be insured hereunder for any primary negligence or misconduct on their part, but shall be insured hereunder for secondary negligence or misconduct, which shall include the failure to discover and cause to be corrected the negligence or misconduct of lessee, its agents or contractors. This insurance policy shall not be canceled without thirty days prior written notice to the Board and all named insured. None of the foregoing additional insureds are liable for the payment of premiums or assessments on this policy." (b) No cancellation provision in any insurance policy shall release the lessee of duty to furnish insurance during the term of this contract. The policy or policies shall be underwritten to the satisfaction of the chairperson. A signed and complete certificate of insurance, with the endorsement required by this subsection, shall be submitted to the chairperson prior to entry upon the leased land. At least thirty days prior to the expiration of any policy, a signed and complete certificate of insurance, with the endorsement required by this paragraph showing that the insurance coverage has been renewed or extended, shall be filed with the chairperson. [Eff. JUN 22 1981] (Auth: HRS §182-14) (Imp: HRS §§182-3, 182-14)