Cancellation or Nonrenewal by a Provider of Financial Assurance

(1) Except as otherwise provided, a provider of financial assurance may cancel or not renew a financial assurance mechanism by sending a notice of termination by certified mail to the Owner or Operator. Upon receiving a notice of termination, the Owner or Operator shall notify the Department in writing, as soon as possible, but in no event later than seven business days after receiving the notice. (a) Termination of a local government guarantee, a guarantee, a surety bond, or a letter of credit may not occur until 120 days after the date on which the Owner or Operator and the Department receives the notice of termination, as evidenced by the return receipt. If the dates of receipt are different, the later date shall control. (b) Termination of insurance or risk retention coverage, except for non-payment or misrepresentation by the insured, 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. (2) If a provider of financial responsibility cancels or does not renew for reasons other than incapacity of the provider as specified in 310 CMR 80.62, the Owner or Operator shall obtain alternate coverage 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 shall provide written documentation to the Department of such failure and submit: (a) The name and address of the provider of financial assurance; (b) The name and address of the Trustee, if applicable; (c) The effective date of termination; and (d) A copy of the financial assurance mechanism that is being terminated. (3) Nothing in 310 CMR 80.57 shall relieve Owners and Operators from their obligation to demonstrate and maintain financial assurance. (4) Termination shall not relieve the Owner and Operator of any financial responsibility obligations under 310 CMR 80.51 through 80.63.