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Rule Title: TYPES AND CONDITIONS OF FINANCIAL RESPONSIBILITY
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Department: AGRICULTURE, DEPARTMENT OF
Chapter: AGRICULTURAL SCIENCES DIVISION
Subchapter: Liability Rules
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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4.10.102    TYPES AND CONDITIONS OF FINANCIAL RESPONSIBILITY

(1)  In meeting the financial responsibility requirements of ARM 4.10.101, applicant shall have the option to utilize and provide any one or more of the following means: (a)  policy of liability insurance; or (b)  a surety bond; or (c)  by a deposit of cash, or certificate of deposit, or deposit of bond or other obligations for the payment of which the full faith and credit of the United States or of this state are pledged, and which has the capability of being directly converted to legal tender by this department, and approved by the department, conditioned to indemnify the people of the state of Montana for all damages to property and/or injury or death to any person or persons as set forth in ARM 4.10.101. After a deposit is made pursuant to (c)  above, and after a license has been issued conditioned thereon, the deposit may not be withdrawn except with the prior written consent of the department and any unauthorized withdrawal or attempt to so withdraw may subject all persons involved with the withdrawal or any attempt thereof, to a charge of violating section 80-8-306 (1)  MCA.

(a)  The insurance policy or surety bond options shall only be approved if issued by an insurance company or bonding company currently qualified to do business in the state of Montana, and which provides for chemical damage responsibility for each and every chemical or pesticide the applicator may choose to apply.

(b)  The total aggregate liability of each insurer or surety for claims shall be limited to the face amount of the policy or surety bond, and not exceeding the limits of each applicant under ARM 4.10.101 in the event the face amount of the policy or bond exceeds the required limits, for the current year together with all unresolved or unpaid claims, timely filed, pending from previous calendar years coverage.

(2)  The department may accept a liability insurance policy in the proper face amount that contains a deductible clause in an amount not to exceed five hundred dollars ($500.00)  for all applicators. The department may allow a deductible greater than $500 if an applicant submits documentation that a deductible of $500 or less is not available from any insurer. This exception shall only be based upon the lack of availability of the established deductible, not the increase or decrease in premium value of a higher deductible. When the deductible is greater than $500, the applicator shall be required to obtain a bond or an indemnity as specified in ARM 4.10.102(1)  (c)  for any amount greater than $500. If the licensee has not satisfied the requirements of the deductible amount of any prior damage claim, such deductible clause in a currently submitted policy shall not be accepted by the department to satisfy the licensing requirements unless and until the applicant satisfies the prior damage claim. Insurance policies may have the pollution exclusion clause removed.

(3)  The financial responsibility requirement imposed by ARM 4.10.101 must be maintained in full force and effect during each entire licensing period, except as provided in ARM 4.10.108. In the event of a lapse or termination in the means assuring financial responsibility, the applicator's license(s)  shall automatically terminate, coincidental in time with the lapse or termination of financial responsibility, and the licensee shall immediately cease all applications of pesticides, and without further notice shall immediately return to the department, in person or by certified mail, all licenses issued to him and/or his employees for the current calendar year; and failure to so return shall constitute a violation under ARM 4.10.208. In the event a previously licensed applicator whose license(s)  was terminated by the provisions of this rule desires to have his license reissued for the balance of the calendar year, he shall file a new application, accompanied by a new filing fee, and demonstrate to the satisfaction of the department that he once again meets the financial responsibility requirements of ARM 4.10.101 and upon re-approval by the department, his license(s)  may be reissued unless some other legal or regulatory cause exists for non-issuance.

History: Sec. 80-8-105 MCA; IMP, Sec. 80-8-214 MCA; NEW, 1979 MAR p. 437, Eff. 5/11/79; AMD, 1986 MAR p. 1007, Eff. 6/13/86.


 

 
MAR Notices Effective From Effective To History Notes
6/13/1986 Current History: Sec. 80-8-105 MCA; IMP, Sec. 80-8-214 MCA; NEW, 1979 MAR p. 437, Eff. 5/11/79; AMD, 1986 MAR p. 1007, Eff. 6/13/86.
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