NR 664.0145(5)(a)(a) An owner or operator may satisfy the requirements of this section by obtaining long-term care insurance which conforms to the requirements of this subsection and submitting a certificate of the insurance to the department. An owner or operator of a new facility shall submit the certificate of insurance to the department at least 60 days before the date on which hazardous waste is first received for disposal. The insurance shall be effective before this initial receipt of hazardous waste. At a minimum, the insurer shall be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in one or more states. The department, after conferring with the Wisconsin insurance commissioner, shall determine the acceptability of a surplus lines or captive insurance company to provide coverage for proof of financial responsibility. The department shall ask the insurance commissioner to provide a financial analysis of the insurer including a recommendation as to the insurer’s ability to provide the required coverage. The department may require a periodic review of the acceptability of a surplus lines or captive insurance company.

NR 664.0145(5)(b)(b) The wording of the certificate of insurance shall be identical to the wording on the department form specified in s. NR 664.0151 (5).

NR 664.0145(5)(c)(c) The long-term care insurance policy shall be issued for a face amount at least equal to the current long-term care cost estimate, except as provided sub. (9). The term “face amount” means the total amount the insurer is obligated to pay under the policy. Actual payments by the insurer will not change the face amount, although the insurer’s future liability will be lowered by the amount of the payments.

NR 664.0145(5)(d)(d) The long-term care insurance policy shall guarantee that funds will be available to provide long-term care of the facility whenever the long-term care period begins. The policy shall also guarantee that once long-term care begins, the insurer will be responsible for paying out funds, up to an amount equal to the face amount of the policy, upon the direction of the department, to the party or parties as the department specifies.

NR 664.0145(5)(e)(e) An owner or operator or any other person authorized to conduct long-term care may request reimbursements for long-term care expenditures by submitting itemized bills to the department. Within 60 days after receiving bills for long-term care activities, the department will instruct the insurer to make reimbursements in those amounts as the department specifies in writing, if the department determines that the long-term care expenditures are in accordance with the approved long-term care plan or otherwise justified. If the department does not instruct the insurer to make the reimbursements, the department will provide the owner or operator with a detailed written statement of reasons.

NR 664.0145(5)(f)(f) The owner or operator shall maintain the policy in full force and effect until the department consents to termination of the policy by the owner or operator as specified in par. (k). Failure to pay the premium, without substitution of alternate financial assurance as specified in this section, will constitute a significant violation of this chapter, warranting a remedy as the department deems necessary. The violation will be deemed to begin upon receipt by the department of a notice of future cancellation, termination or failure to renew due to nonpayment of the premium, rather than upon the date of expiration.

NR 664.0145(5)(g)(g) Each policy shall contain a provision allowing assignment of the policy to a successor owner or operator. The assignment may be conditional upon consent of the insurer, provided the consent is not unreasonably refused.

NR 664.0145(5)(h)(h) The policy shall provide that the insurer may not cancel, terminate or fail to renew the policy unless a replacement insurance policy or other proof of financial responsibility under this section is provided to the department by the owner or operator. The automatic renewal of the policy shall, at a minimum, provide the insured with the option of renewal at the face amount of the expiring policy. If the insurer elects to cancel, terminate or fail to renew the policy, the insurer shall provide notice by certified mail to the owner or operator and the department not less than 120 days prior to the proposed cancellation date. Cancellation, termination or failure to renew may not occur, however, during the 120 days beginning with the date of receipt of the notice by both the department and the owner or operator, as evidenced by the return receipts. Cancellation, termination or failure to renew may not occur and the policy will remain in full force and effect in the event that on or before the date of expiration any of the following apply:

NR 664.0145(5)(i)(i) Whenever the current long-term care cost estimate increases to an amount greater than the face amount of the policy during the operating life of the facility, the owner or operator, within 60 days after the increase, shall either cause the face amount to be increased to an amount at least equal to the current long-term care cost estimate and submit evidence of the increase to the department, or obtain other financial assurance as specified in this section to cover the increase. Whenever the current long-term care cost estimate decreases during the operating life of the facility, the face amount may be reduced to the amount of the current long-term care cost estimate following written approval by the department.

NR 664.0145(5)(j)(j) Commencing on the date that liability to make payments pursuant to the policy accrues, the insurer will thereafter annually increase the face amount of the policy. The increase shall be equivalent to the face amount of the policy, less any payments made, multiplied by an amount equivalent to 85% of the most recent investment rate or of the equivalent coupon-issue yield announced by the U.S. treasury for 26-week treasury securities.

NR 664.0145(5)(k)(k) The department will give written consent to the owner or operator that the owner or operator may terminate the insurance policy when any of the following apply:

NR 664.0145(6)(a)(a) An owner or operator of a disposal facility may use the net worth test to provide financial responsibility if all of the following are met:

NR 664.0145(6)(a)2.2. The owner shall comply with the net worth test requirements of s. 289.41 (4), (6) and (7), Stats., and the minimum security requirements of s. 289.41 (9), Stats., whichever are applicable. The updated net worth test information required under s. 289.41 (4), Stats., shall be submitted annually to the department within 90 days after the close of the company’s fiscal year.

NR 664.0145(6)(b)(b) For companies with more than one facility, the total cost of compliance for all facilities shall be used to determine the net worth to closure and long-term care cost ratio.

NR 664.0145(7)(7) Long term care deposit with the department. An owner may deposit cash, certificates of deposit or U.S. government securities with the department. The deposit must be accompanied by a signed duplicate original of Form 4430-028 as specified in s. NR 664.0151 (14). The amount of the deposit shall be determined according to s. NR 664.0144 and shall be submitted as part of an interim license application or the feasibility and plan of operation report. Cash deposits placed with the department shall be segregated and invested in an interest bearing account. All interest payments shall be accumulated in the account. The department shall have the right to use part or all of the funds to carry out the long-term care requirements of the approved closure plan or the applicable requirements in this section if the owner fails to do so.

NR 664.0145(8)(a)(a) An owner or operator may satisfy the requirements of this section by establishing a long-term care escrow account which conforms to the requirements of this subsection and submitting an originally signed duplicate of the escrow agreement to the department. An owner or operator of a new facility shall submit the originally signed duplicate of the escrow agreement to the department at least 60 days before the date on which hazardous waste is first received for disposal. The escrow agent shall be an entity which has the authority to act as an escrow agent and the escrow account shall be established with a bank or financial institution which is regulated and examined by a federal or state agency.