Third-Party Claims

PURPOSE: This rule describes the procedures to be followed in the event there is a third-party claim against a tank owner or operator who is insured by the fund, and summarizes what third-party coverage is provided by the fund. (1) In the event that a fund participant receives notice from a third party, alleging property damage or bodily injury as a result of a release from a petroleum storage tank, he or she must notify the board in writing as soon as reasonably possible. Any written notice received by a fund participant which asserts an obligation to pay damages must be forwarded to the board. The fund participant must provide notification to the board while coverage is in effect, or during an extended reporting period allowed by the board. (2) Fund participants must immediately send copies of any demands, notices, summonses or legal papers received in connection with a claim or suit, and must— (A) Authorize the board to obtain all records and other information available regarding the claim or suit; (B) Cooperate with the board in the investigation, settlement or defense of the claim or suit; and (C) Assist the board, upon request, in the enforcement of any right against any person or organization which may be liable to the fund participant because of injury or damage covered by the fund. (3) No fund participant may, except at the participant’s own cost, voluntarily make any payments of compensatory damages because of bodily injury or property damage without the prior consent of the board. (4) Coverage for such damages does not include coverage for any loss or damage of an intangible nature, including, but not limited to, loss or interruption of business, pain and suffering of any person, lost income, mental distress, loss of use of any benefit, or punitive damages. (5) The fund does not provide third-party coverage of any kind for releases from petroleum storage tanks at sites described in 10 CSR 100-5.010(4)(B), (4)(C), (4)(D), or (4)(E). (6) The board has the right to defend any suit seeking property or bodily injury damages, and may investigate and settle any claim for third-party damages or suit at its sole discretion. (7) The board has no obligation to defend any claim or suit for damages not covered by the fund. AUTHORITY: sections 319.129 and 319.131, RSMo 2016.* Original rule filed April 1, 1999, effective Nov. 30, 1999. Amended: Filed Feb. 15, 2018, effective Sept. 30, 2018. *Original authority: 319.129, RSMo 1989, amended 1991, 1996, 1998, 2001, 2008 and 319.131, RSMo 1989, amended 1991, 1994, 1995, 1996, 1998, 2001, 2008. Board of Trustees