§ 553.29. How can I use insurance as OSFR evidence?
455 words·~2 min read·
/us/cfr/t30/s§ 553.29·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)If you use insurance to satisfy all or part of your obligation to demonstrate OSFR, you may use only insurance certificates issued by insurers that have achieved a "Secure" rating for claims paying ability in their latest review by A.M. Best's Insurance Reports, Standard Poor's Insurance Rating Services, or other equivalent rating made by a rating service acceptable to BOEM.
(b)You must submit information about your insurers to BOEM on a completed and unaltered Form BOEM-1019. The information you submit must:
(1)Include all the information required by § 553.41 and
(2)Be executed on one original insurance certificate (i.e., Form BOEM-1019) for each OSFR layer (see paragraph
(c)of this section), showing all participating insurers and their proportion (quota share) of this risk. The certificate must bear the original signatures of each insurer's underwriter or of their lead underwriters, underwriting managers, or delegated brokers, depending on who is authorized to bind the underwriter.
(3)For each insurance company on the insurance certificate, indicate the insurer's claims-paying-ability rating and the rating service that issued the rating.
(c)The insurance evidence you provide to BOEM as OSFR evidence may be divided into layers, subject to the following restrictions:
(1)The total amount of OSFR evidence must equal the total amount you must demonstrate under § 553.13;
(2)No more than one insurance certificate may be used to cover each OSFR layer specified in § 553.13(b) (i.e., four layers for an OCS COF, and five layers for a non-OCS COF);
(3)You may use one insurance certificate to cover any number of consecutive OSFR layers;
(4)Each insurer's participation in the covered insurance risk must be on a proportional (quota share) basis, must be expressed as a percentage of a whole layer, and the certificate must not contain intermediate, horizontal layers;
(5)You may use an insurance deductible. If you use more than one insurance certificate, the deductible amount must apply only to the certificate that covers the base OSFR amount layer. To satisfy an insurance deductible, you may use only those methods that are acceptable as evidence of OSFR under this part; and
(6)You must identify a U.S. agent for service of process on each insurance certificate you submit to BOEM. The agent may be different for each insurance certificate.
(d)You may submit to BOEM a temporary insurance confirmation (fax binder) for each insurance certificate you use as OSFR evidence. Submit your fax binder on Form BOEM-1019, and each form must include the signature of an underwriter for at least one of the participating insurers. BOEM will accept your fax binder as OSFR evidence during a period that ends 90 days after the date that you need the insurance to demonstrate OSFR.