{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/62.1-44.34_12.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/62.1-44.34_12.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/62.1-44.34_12.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/62.1-44.34_12.html"}],"law_id":76424,"edition_id":1,"section_id":76424,"structure_id":16586,"section_number":"62.1-44.34:12","catch_line":"Financial responsibility","history":"1987, c. 677; 1989, c. 627; 1990, c. 581; 1992, c. 819; 1993, c. 375; 1996, c. 737; 1998, c. 87.","full_text":"A\n\nThe Board shall adopt regulations that conform to the federal financial responsibility requirements of 42 U.S.C. § 6991b (d) and any regulations adopted thereunder. Owners and operators of underground storage tanks shall annually demonstrate and maintain evidence of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage in accordance with regulations adopted by the Board. Financial responsibility established in accordance with regulations adopted by the Board may be demonstrated by any combination of the following mechanisms: insurance, guarantee, surety bond, letter of credit, irrevocable trust fund, qualification as a self-insurer, or the Fund. The Fund may be used as a mechanism to demonstrate the portion of the federal financial responsibility requirements that are in excess of the state financial responsibility requirements contained in subsection B.B\n\nState requirements for owners and operators of underground storage tanks for maintaining evidence of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage shall be as follows:1\n\nOwners and operators with 600,000 gallons or less of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $5,000 per occurrence for taking corrective action and $15,000 per occurrence for compensating third parties, with an annual aggregate of $20,000;2\n\nOwners and operators with between 600,001 to 1,200,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $10,000 per occurrence for taking corrective action and $30,000 per occurrence for compensating third parties, with an annual aggregate of $40,000;3\n\nOwners and operators with between 1,200,001 to 1,800,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $20,000 per occurrence for taking corrective action and $60,000 per occurrence for compensating third parties, with an annual aggregate of $80,000;4\n\nOwners and operators with between 1,800,001 to 2,400,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $30,000 per occurrence for taking corrective action and $120,000 per occurrence for compensating third parties, with an annual aggregate of $150,000;5\n\nOwners and operators with in excess of 2,400,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $50,000 per occurrence for taking corrective action and $150,000 per occurrence for compensating third parties, with an annual aggregate of $200,000; and6\n\nOther owners and operators, $50,000 per occurrence for taking corrective action and $150,000 per occurrence for compensating third parties, with an annual aggregate of $200,000.C\n\nAny claim arising out of conduct for which evidence of financial responsibility must be provided under this section may be asserted directly against the person guaranteeing or providing evidence of financial responsibility. In such a case, the person against whom the claim is made shall be entitled to invoke all rights and defenses which would have been available to the owner or operator had such action been brought directly against the owner or operator.\n\t\t\tThis section shall not limit any other state or federal statutory, contractual, or common law liability of the guarantor for bad faith in negotiating or in failing to negotiate the settlement of any claim. This section does not diminish the liability of any person under § 107 or § 111 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, or other applicable law.\n\t\t\tThe Board shall adopt regulations specifying compliance dates for the demonstration of financial responsibility required by this section, in accordance with the compliance dates established in federal regulations by the United States Environmental Protection Agency.D\n\nOwners and operators of underground storage tanks who are unable to demonstrate financial responsibility in the minimum amounts specified in subsection B, and operators of facilities who are unable to demonstrate financial responsibility in amounts established pursuant to subsection D of \u00a7 62.1-44.34:16, may establish an insurance pool in order to demonstrate such financial responsibility. Any contract establishing such an insurance pool shall provide:1\n\nFor election by pool members of a governing authority for the pool, which may be a board of directors, a majority of whom shall be elected or appointed officials of pool members.2\n\nA financial plan setting forth in general terms:\n\t\t\t\ta. The insurance coverages to be offered by the insurance pool, applicable deductible levels, and the maximum level of claims which the pool will self-insure;\n\t\t\t\tb. The amount of cash reserves to be set aside for the payment of claims;\n\t\t\t\tc. The amount of insurance to be purchased by the pool to provide coverage over and above the claims which are not to be satisfied directly from the pool’s resources; and\n\t\t\t\td. The amount, if any, of aggregate excess insurance coverage to be purchased and maintained in the event that the insurance pool’s resources are exhausted in a given fiscal period.3\n\nA plan of management which provides for all of the following:\n\t\t\t\ta. The means of establishing the governing authority of the pool;\n\t\t\t\tb. The responsibility of the governing authority for fixing contributions to the pool, maintaining reserves, levying and collecting assessments for deficiencies, disposing of surpluses, and administration of the pool in the event of termination or insolvency;\n\t\t\t\tc. The basis upon which new members may be admitted to, and existing members may leave, the pool;\n\t\t\t\td. The identification of funds and reserves by exposure areas; and\n\t\t\t\te. Such other provisions as are necessary or desirable for the operation of the pool.E\n\nThe formation and operation of an insurance pool under this section shall be subject to approval by the State Corporation Commission which may, after notice and hearing, establish reasonable requirements and regulations for the approval and monitoring of such pools, including prior approval of pool administrators and provisions for periodic examinations of financial condition.\n\t\t\tThe State Corporation Commission may disapprove an application for the formation of an insurance pool, and may suspend or withdraw such approval whenever it finds that such applicant or pool:1\n\nHas refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the Commission or its representative;2\n\nHas refused, or its officers or agents have refused, to furnish satisfactory evidence of its financial and business standing or solvency;3\n\nIs insolvent, or is in such condition that its further transaction of business in this Commonwealth is hazardous to its members and creditors in this Commonwealth, and to the public;4\n\nHas refused or neglected to pay a valid final judgment against it within sixty days after its rendition;5\n\nHas violated any law of this Commonwealth or has violated or exceeded the powers granted by its members;6\n\nHas failed to pay any fees, taxes or charges imposed in this Commonwealth within sixty days after they are due and payable, or within sixty days after final disposition of any legal contest with respect to liability therefor; or7\n\nHas been found insolvent by a court of any other state, or by the Insurance Commissioner or other proper officer or agency of any other state, and has been prohibited from doing business in such state.","order_by":null,"text":{"0":{"id":274317,"text":"The Board shall adopt regulations that conform to the federal financial responsibility requirements of 42 U.S.C. § 6991b (d) and any regulations adopted thereunder. Owners and operators of underground storage tanks shall annually demonstrate and maintain evidence of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage in accordance with regulations adopted by the Board. Financial responsibility established in accordance with regulations adopted by the Board may be demonstrated by any combination of the following mechanisms: insurance, guarantee, surety bond, letter of credit, irrevocable trust fund, qualification as a self-insurer, or the Fund. The Fund may be used as a mechanism to demonstrate the portion of the federal financial responsibility requirements that are in excess of the state financial responsibility requirements contained in subsection B.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":274318,"text":"State requirements for owners and operators of underground storage tanks for maintaining evidence of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage shall be as follows:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":274319,"text":"Owners and operators with 600,000 gallons or less of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $5,000 per occurrence for taking corrective action and $15,000 per occurrence for compensating third parties, with an annual aggregate of $20,000;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":274320,"text":"Owners and operators with between 600,001 to 1,200,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $10,000 per occurrence for taking corrective action and $30,000 per occurrence for compensating third parties, with an annual aggregate of $40,000;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":274321,"text":"Owners and operators with between 1,200,001 to 1,800,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $20,000 per occurrence for taking corrective action and $60,000 per occurrence for compensating third parties, with an annual aggregate of $80,000;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":274322,"text":"Owners and operators with between 1,800,001 to 2,400,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $30,000 per occurrence for taking corrective action and $120,000 per occurrence for compensating third parties, with an annual aggregate of $150,000;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":274323,"text":"Owners and operators with in excess of 2,400,000 gallons of petroleum pumped on an annual basis into all underground storage tanks owned or operated, $50,000 per occurrence for taking corrective action and $150,000 per occurrence for compensating third parties, with an annual aggregate of $200,000; and","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":274324,"text":"Other owners and operators, $50,000 per occurrence for taking corrective action and $150,000 per occurrence for compensating third parties, with an annual aggregate of $200,000.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"C"},"8":{"id":274325,"text":"Any claim arising out of conduct for which evidence of financial responsibility must be provided under this section may be asserted directly against the person guaranteeing or providing evidence of financial responsibility. In such a case, the person against whom the claim is made shall be entitled to invoke all rights and defenses which would have been available to the owner or operator had such action been brought directly against the owner or operator.\n\t\t\tThis section shall not limit any other state or federal statutory, contractual, or common law liability of the guarantor for bad faith in negotiating or in failing to negotiate the settlement of any claim. This section does not diminish the liability of any person under § 107 or § 111 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, or other applicable law.\n\t\t\tThe Board shall adopt regulations specifying compliance dates for the demonstration of financial responsibility required by this section, in accordance with the compliance dates established in federal regulations by the United States Environmental Protection Agency.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B6","next_prefix":"D"},"9":{"id":274326,"text":"Owners and operators of underground storage tanks who are unable to demonstrate financial responsibility in the minimum amounts specified in subsection B, and operators of facilities who are unable to demonstrate financial responsibility in amounts established pursuant to subsection D of \u00a7 62.1-44.34:16, may establish an insurance pool in order to demonstrate such financial responsibility. Any contract establishing such an insurance pool shall provide:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"10":{"id":274327,"text":"For election by pool members of a governing authority for the pool, which may be a board of directors, a majority of whom shall be elected or appointed officials of pool members.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"11":{"id":274328,"text":"A financial plan setting forth in general terms:\n\t\t\t\ta. The insurance coverages to be offered by the insurance pool, applicable deductible levels, and the maximum level of claims which the pool will self-insure;\n\t\t\t\tb. The amount of cash reserves to be set aside for the payment of claims;\n\t\t\t\tc. The amount of insurance to be purchased by the pool to provide coverage over and above the claims which are not to be satisfied directly from the pool’s resources; and\n\t\t\t\td. The amount, if any, of aggregate excess insurance coverage to be purchased and maintained in the event that the insurance pool’s resources are exhausted in a given fiscal period.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"12":{"id":274329,"text":"A plan of management which provides for all of the following:\n\t\t\t\ta. The means of establishing the governing authority of the pool;\n\t\t\t\tb. The responsibility of the governing authority for fixing contributions to the pool, maintaining reserves, levying and collecting assessments for deficiencies, disposing of surpluses, and administration of the pool in the event of termination or insolvency;\n\t\t\t\tc. The basis upon which new members may be admitted to, and existing members may leave, the pool;\n\t\t\t\td. The identification of funds and reserves by exposure areas; and\n\t\t\t\te. Such other provisions as are necessary or desirable for the operation of the pool.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"E"},"13":{"id":274330,"text":"The formation and operation of an insurance pool under this section shall be subject to approval by the State Corporation Commission which may, after notice and hearing, establish reasonable requirements and regulations for the approval and monitoring of such pools, including prior approval of pool administrators and provisions for periodic examinations of financial condition.\n\t\t\tThe State Corporation Commission may disapprove an application for the formation of an insurance pool, and may suspend or withdraw such approval whenever it finds that such applicant or pool:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D3","next_prefix":"E1"},"14":{"id":274331,"text":"Has refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the Commission or its representative;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"15":{"id":274332,"text":"Has refused, or its officers or agents have refused, to furnish satisfactory evidence of its financial and business standing or solvency;","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"16":{"id":274333,"text":"Is insolvent, or is in such condition that its further transaction of business in this Commonwealth is hazardous to its members and creditors in this Commonwealth, and to the public;","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"17":{"id":274334,"text":"Has refused or neglected to pay a valid final judgment against it within sixty days after its rendition;","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"E5"},"18":{"id":274335,"text":"Has violated any law of this Commonwealth or has violated or exceeded the powers granted by its members;","type":"section","prefixes":["E","5"],"prefix":"5","entire_prefix":"E5","prefix_anchor":"E5","level":2,"prior_prefix":"E4","next_prefix":"E6"},"19":{"id":274336,"text":"Has failed to pay any fees, taxes or charges imposed in this Commonwealth within sixty days after they are due and payable, or within sixty days after final disposition of any legal contest with respect to liability therefor; or","type":"section","prefixes":["E","6"],"prefix":"6","entire_prefix":"E6","prefix_anchor":"E6","level":2,"prior_prefix":"E5","next_prefix":"E7"},"20":{"id":274337,"text":"Has been found insolvent by a court of any other state, or by the Insurance Commissioner or other proper officer or agency of any other state, and has been prohibited from doing business in such state.","type":"section","prefixes":["E","7"],"prefix":"7","entire_prefix":"E7","prefix_anchor":"E7","level":2,"prior_prefix":"E6"}},"ancestry":[{"id":16586,"edition_id":1,"name":"Petroleum Storage Tank Fund","identifier":"10","label":"article","depth":3,"order_by":1,"parent_id":13014,"metadata":{},"date_created":"2026-06-26 04:25:39","date_modified":"2026-06-26 04:25:39","permalink":{"id":269201,"object_type":"structure","relational_id":16586,"identifier":"10","token":"62.1\/3.1\/10","url":"\/62.1\/3.1\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13014,"edition_id":1,"name":"State Water Control Law","identifier":"3.1","label":"chapter","depth":2,"order_by":1,"parent_id":12909,"metadata":{},"date_created":"2026-06-26 03:44:08","date_modified":"2026-06-26 03:44:08","permalink":{"id":269169,"object_type":"structure","relational_id":13014,"identifier":"3.1","token":"62.1\/3.1","url":"\/62.1\/3.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12909,"edition_id":1,"name":"Waters of the State, Ports and Harbors","identifier":"62.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:00","date_modified":"2026-06-26 03:44:00","permalink":{"id":268199,"object_type":"structure","relational_id":12909,"identifier":"62.1","token":"62.1","url":"\/62.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81622,"structure_id":16586,"section_number":"62.1-44.34:10","catch_line":"Definitions","url":"\/62.1-44.34_10\/","token":"62.1\/3.1\/10\/62.1-44.34_10","metadata":false},{"id":75515,"structure_id":16586,"section_number":"62.1-44.34:11","catch_line":"Virginia Petroleum Storage Tank Fund","url":"\/62.1-44.34_11\/","token":"62.1\/3.1\/10\/62.1-44.34_11","metadata":false},{"id":76424,"structure_id":16586,"section_number":"62.1-44.34:12","catch_line":"Financial responsibility","url":"\/62.1-44.34_12\/","token":"62.1\/3.1\/10\/62.1-44.34_12","metadata":false},{"id":71863,"structure_id":16586,"section_number":"62.1-44.34:13","catch_line":"Levy of fee for Fund maintenance","url":"\/62.1-44.34_13\/","token":"62.1\/3.1\/10\/62.1-44.34_13","metadata":false}],"previous_section":{"id":75515,"structure_id":16586,"section_number":"62.1-44.34:11","catch_line":"Virginia Petroleum Storage Tank Fund","url":"\/62.1-44.34_11\/","token":"62.1\/3.1\/10\/62.1-44.34_11","metadata":false},"next_section":{"id":71863,"structure_id":16586,"section_number":"62.1-44.34:13","catch_line":"Levy of fee for Fund maintenance","url":"\/62.1-44.34_13\/","token":"62.1\/3.1\/10\/62.1-44.34_13","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/62.1-44.34:12\/","history_text":"

This law was first created in 1987. The record of its establishment is cataloged in chapter 677 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1987 \u201cActs\u201d aren\u2019t available online. It has been modified 6 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1989, chapter 627; in 1990, chapter 581; in 1992, chapter 819; in 1993, chapter 375; in 1996, chapter 737<\/a>; in 1998, chapter 87<\/a>.<\/p>","references":[{"id":75515,"section_number":"62.1-44.34:11","catch_line":"Virginia Petroleum Storage Tank Fund","order_by":null,"url":"\/62.1-44.34_11\/"},{"id":62684,"section_number":"62.1-44.34:16","catch_line":"Financial responsibility for vessels and facilities","order_by":null,"url":"\/62.1-44.34_16\/"}],"refers_to":[{"id":62684,"section_number":"62.1-44.34:16","catch_line":"Financial responsibility for vessels and facilities","order_by":null,"url":"\/62.1-44.34_16\/"}],"permalink":{"id":269211,"object_type":"law","relational_id":76424,"identifier":"62.1-44.34:12","token":"62.1\/3.1\/10\/62.1-44.34_12","url":"\/62.1-44.34_12\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/62.1-44.34_12\/","token":"62.1\/3.1\/10\/62.1-44.34_12","dublin_core":{"Title":"Financial responsibility","Type":"Text","Format":"text\/html","Identifier":"\u00a7 62.1-44.34:12","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Board<\/span> shall adopt regulations<\/span> that conform to the federal financial responsibility requirements of 42 U.S.C. § 6991b (d) and any regulations<\/span> adopted thereunder. Owners<\/span> and operators of underground storage tanks<\/span> shall annually demonstrate and maintain evidence<\/span> of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage in accordance with regulations<\/span> adopted by the Board<\/span>. Financial responsibility established in accordance with regulations<\/span> adopted by the Board<\/span> may be demonstrated by any combination of the following mechanisms: insurance, guarantee, surety<\/span> bond<\/span>, letter of credit, irrevocable trust fund<\/span>, qualification as a self-insurer, or the Fund<\/span>. The Fund<\/span> may be used as a mechanism to demonstrate the portion of the federal financial responsibility requirements that are in excess of the state financial responsibility requirements contained in subsection B. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> State requirements for owners<\/span> and operators of underground storage tanks<\/span> for maintaining evidence<\/span> of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage shall be as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Owners<\/span> and operators with 600,000 gallons or less of petroleum pumped on an annual basis into all underground storage tanks<\/span> owned or operated, $5,000 per occurrence for taking corrective action and $15,000 per occurrence for compensating third parties, with an annual aggregate of $20,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Owners<\/span> and operators with between 600,001 to 1,200,000 gallons of petroleum pumped on an annual basis into all underground storage tanks<\/span> owned or operated, $10,000 per occurrence for taking corrective action and $30,000 per occurrence for compensating third parties, with an annual aggregate of $40,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Owners<\/span> and operators with between 1,200,001 to 1,800,000 gallons of petroleum pumped on an annual basis into all underground storage tanks<\/span> owned or operated, $20,000 per occurrence for taking corrective action and $60,000 per occurrence for compensating third parties, with an annual aggregate of $80,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Owners<\/span> and operators with between 1,800,001 to 2,400,000 gallons of petroleum pumped on an annual basis into all underground storage tanks<\/span> owned or operated, $30,000 per occurrence for taking corrective action and $120,000 per occurrence for compensating third parties, with an annual aggregate of $150,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Owners<\/span> and operators with in excess of 2,400,000 gallons of petroleum pumped on an annual basis into all underground storage tanks<\/span> owned or operated, $50,000 per occurrence for taking corrective action and $150,000 per occurrence for compensating third parties, with an annual aggregate of $200,000; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Other owners<\/span> and operators, $50,000 per occurrence for taking corrective action and $150,000 per occurrence for compensating third parties, with an annual aggregate of $200,000. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any claim arising out of conduct for which evidence<\/span> of financial responsibility must be provided under this section may be asserted directly against the person<\/span> guaranteeing or providing evidence<\/span> of financial responsibility. In such a case, the person<\/span> against whom the claim is made shall be entitled to invoke all rights and defenses which would have been available to the owner<\/span> or operator had such action been brought directly against the owner<\/span> or operator.\n\t\t\tThis section shall not limit any other state or federal statutory, contractual, or common law<\/span> liability of the guarantor for bad faith in negotiating or in failing to negotiate the settlement<\/span> of any claim. This section does not diminish the liability of any person<\/span> under § 107 or § 111 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, or other applicable law.\n\t\t\tThe Board<\/span> shall adopt regulations<\/span> specifying compliance dates for the demonstration of financial responsibility required by this section, in accordance with the compliance dates established in federal regulations<\/span> by the United States Environmental Protection Agency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Owners<\/span> and operators of underground storage tanks<\/span> who are unable to demonstrate financial responsibility in the minimum amounts specified in subsection B, and operators of facilities who are unable to demonstrate financial responsibility in amounts established pursuant to subsection D of \u00a7 62.1-44.34:16<\/a>, may establish an insurance pool in order<\/span> to demonstrate such financial responsibility. Any contract<\/span> establishing such an insurance pool shall provide: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For election by pool members<\/span> of a governing authority for the pool, which may be a board<\/span> of directors<\/span>, a majority of whom shall be elected or appointed officials of pool members<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A financial plan setting forth in general terms:\n\t\t\t\ta. The insurance coverages to be offered by the insurance pool, applicable deductible levels, and the maximum level of claims which the pool will self-insure;\n\t\t\t\tb. The amount of cash reserves to be set aside for the payment of claims;\n\t\t\t\tc. The amount of insurance to be purchased by the pool to provide coverage over and above the claims which are not to be satisfied directly from the pool’s resources; and\n\t\t\t\td. The amount, if any, of aggregate excess insurance coverage to be purchased and maintained in the event that the insurance pool’s resources are exhausted in a given fiscal period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A plan of management which provides for all of the following:\n\t\t\t\ta. The means of establishing the governing authority of the pool;\n\t\t\t\tb. The responsibility of the governing authority for fixing contributions to the pool, maintaining reserves, levying and collecting assessments for deficiencies, disposing of surpluses, and administration of the pool in the event of termination or insolvency;\n\t\t\t\tc. The basis upon which new members<\/span> may be admitted to, and existing members<\/span> may leave, the pool;\n\t\t\t\td. The identification of funds<\/span> and reserves by exposure areas; and\n\t\t\t\te. Such other provisions as are necessary or desirable for the operation of the pool. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The formation and operation of an insurance pool under this section shall be subject to approval by the State Corporation Commission which may, after notice and hearing<\/span>, establish reasonable requirements and regulations<\/span> for the approval and monitoring of such pools, including prior approval of pool administrators and provisions for periodic examinations of financial condition.\n\t\t\tThe State Corporation Commission may disapprove an application for the formation of an insurance pool, and may suspend or withdraw such approval whenever it finds that such applicant or pool: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Has refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the Commission or its representative; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Has refused, or its officers or agents have refused, to furnish satisfactory evidence<\/span> of its financial and business standing or solvency; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Is insolvent, or is in such condition that its further transaction of business in this Commonwealth is hazardous to its members<\/span> and creditors<\/span> in this Commonwealth, and to the public; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Has refused or neglected to pay a valid final judgment<\/span> against it within sixty days after its rendition; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Has violated any law of this Commonwealth or has violated or exceeded the powers granted by its members<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Has failed to pay any fees, taxes or charges imposed in this Commonwealth within sixty days after they are due and payable, or within sixty days after final disposition<\/span> of any legal contest with respect to liability therefor; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Has been found insolvent by a court<\/span> of any other state, or by the Insurance Commissioner or other proper officer or agency of any other state, and has been prohibited from doing business in such state. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFINANCIAL RESPONSIBILITY (\u00a7 62.1-44.34:12)\n\nA. The Board shall adopt regulations that conform to the federal financial\nresponsibility requirements of 42 U.S.C. § 6991b (d) and any regulations\nadopted thereunder. Owners and operators of underground storage tanks shall\nannually demonstrate and maintain evidence of financial responsibility for\ntaking corrective action and for compensating third parties for bodily injury\nand property damage in accordance with regulations adopted by the Board.\nFinancial responsibility established in accordance with regulations adopted by\nthe Board may be demonstrated by any combination of the following mechanisms:\ninsurance, guarantee, surety bond, letter of credit, irrevocable trust fund,\nqualification as a self-insurer, or the Fund. The Fund may be used as a\nmechanism to demonstrate the portion of the federal financial responsibility\nrequirements that are in excess of the state financial responsibility\nrequirements contained in subsection B.\n\nB. State requirements for owners and operators of underground storage tanks for\nmaintaining evidence of financial responsibility for taking corrective action\nand for compensating third parties for bodily injury and property damage shall\nbe as follows:\n\n 1. Owners and operators with 600,000 gallons or less of petroleum pumped on an\n annual basis into all underground storage tanks owned or operated, $5,000 per\n occurrence for taking corrective action and $15,000 per occurrence for\n compensating third parties, with an annual aggregate of $20,000;\n\n 2. Owners and operators with between 600,001 to 1,200,000 gallons of petroleum\n pumped on an annual basis into all underground storage tanks owned or\n operated, $10,000 per occurrence for taking corrective action and $30,000 per\n occurrence for compensating third parties, with an annual aggregate of\n $40,000;\n\n 3. Owners and operators with between 1,200,001 to 1,800,000 gallons of\n petroleum pumped on an annual basis into all underground storage tanks owned\n or operated, $20,000 per occurrence for taking corrective action and $60,000\n per occurrence for compensating third parties, with an annual aggregate of\n $80,000;\n\n 4. Owners and operators with between 1,800,001 to 2,400,000 gallons of\n petroleum pumped on an annual basis into all underground storage tanks owned\n or operated, $30,000 per occurrence for taking corrective action and $120,000\n per occurrence for compensating third parties, with an annual aggregate of\n $150,000;\n\n 5. Owners and operators with in excess of 2,400,000 gallons of petroleum\n pumped on an annual basis into all underground storage tanks owned or\n operated, $50,000 per occurrence for taking corrective action and $150,000 per\n occurrence for compensating third parties, with an annual aggregate of\n $200,000; and\n\n 6. Other owners and operators, $50,000 per occurrence for taking corrective\n action and $150,000 per occurrence for compensating third parties, with an\n annual aggregate of $200,000.\n\nC. Any claim arising out of conduct for which evidence of financial\nresponsibility must be provided under this section may be asserted directly\nagainst the person guaranteeing or providing evidence of financial\nresponsibility. In such a case, the person against whom the claim is made shall\nbe entitled to invoke all rights and defenses which would have been available to\nthe owner or operator had such action been brought directly against the owner or\noperator.\n\t\t\tThis section shall not limit any other state or federal statutory,\ncontractual, or common law liability of the guarantor for bad faith in\nnegotiating or in failing to negotiate the settlement of any claim. This section\ndoes not diminish the liability of any person under § 107 or § 111 of\nthe Comprehensive Environmental Response, Compensation and Liability Act of\n1980, or other applicable law.\n\t\t\tThe Board shall adopt regulations specifying compliance dates for the\ndemonstration of financial responsibility required by this section, in\naccordance with the compliance dates established in federal regulations by the\nUnited States Environmental Protection Agency.\n\nD. Owners and operators of underground storage tanks who are unable to\ndemonstrate financial responsibility in the minimum amounts specified in\nsubsection B, and operators of facilities who are unable to demonstrate\nfinancial responsibility in amounts established pursuant to subsection D of \u00a7\n62.1-44.34:16, may establish an insurance pool in order to demonstrate such\nfinancial responsibility. Any contract establishing such an insurance pool shall\nprovide:\n\n 1. For election by pool members of a governing authority for the pool, which\n may be a board of directors, a majority of whom shall be elected or appointed\n officials of pool members.\n\n 2. A financial plan setting forth in general terms:\n \t\t\t\ta. The insurance coverages to be offered by the insurance pool, applicable\n deductible levels, and the maximum level of claims which the pool will\n self-insure;\n \t\t\t\tb. The amount of cash reserves to be set aside for the payment of claims;\n \t\t\t\tc. The amount of insurance to be purchased by the pool to provide coverage\n over and above the claims which are not to be satisfied directly from the\n pool’s resources; and\n \t\t\t\td. The amount, if any, of aggregate excess insurance coverage to be\n purchased and maintained in the event that the insurance pool’s\n resources are exhausted in a given fiscal period.\n\n 3. A plan of management which provides for all of the following:\n \t\t\t\ta. The means of establishing the governing authority of the pool;\n \t\t\t\tb. The responsibility of the governing authority for fixing contributions\n to the pool, maintaining reserves, levying and collecting assessments for\n deficiencies, disposing of surpluses, and administration of the pool in the\n event of termination or insolvency;\n \t\t\t\tc. The basis upon which new members may be admitted to, and existing\n members may leave, the pool;\n \t\t\t\td. The identification of funds and reserves by exposure areas; and\n \t\t\t\te. Such other provisions as are necessary or desirable for the operation\n of the pool.\n\nE. The formation and operation of an insurance pool under this section shall be\nsubject to approval by the State Corporation Commission which may, after notice\nand hearing, establish reasonable requirements and regulations for the approval\nand monitoring of such pools, including prior approval of pool administrators\nand provisions for periodic examinations of financial condition.\n\t\t\tThe State Corporation Commission may disapprove an application for the\nformation of an insurance pool, and may suspend or withdraw such approval\nwhenever it finds that such applicant or pool:\n\n 1. Has refused to submit its books, papers, accounts, or affairs to the\n reasonable inspection of the Commission or its representative;\n\n 2. Has refused, or its officers or agents have refused, to furnish\n satisfactory evidence of its financial and business standing or solvency;\n\n 3. Is insolvent, or is in such condition that its further transaction of\n business in this Commonwealth is hazardous to its members and creditors in\n this Commonwealth, and to the public;\n\n 4. Has refused or neglected to pay a valid final judgment against it within\n sixty days after its rendition;\n\n 5. Has violated any law of this Commonwealth or has violated or exceeded the\n powers granted by its members;\n\n 6. Has failed to pay any fees, taxes or charges imposed in this Commonwealth\n within sixty days after they are due and payable, or within sixty days after\n final disposition of any legal contest with respect to liability therefor; or\n\n 7. Has been found insolvent by a court of any other state, or by the Insurance\n Commissioner or other proper officer or agency of any other state, and has\n been prohibited from doing business in such state.\n\nHISTORY: 1987, c. 677; 1989, c. 627; 1990, c. 581; 1992, c. 819; 1993, c. 375;\n1996, c. 737; 1998, c. 87.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}