CG DS 07–UNDERGROUND STORAGE TANKS LIABILITY DECLARATIONS

(November 2022)

INTRODUCTION

The Insurance Services Office (ISO) provides a sample declarations for insurance companies to refer to when they develop their own unique declarations. It includes descriptive and inclusive language that clearly identifies the risk, coverage information that relates to specific areas in the coverage form, and rating and premium information that informs the insured of the exact nature of the charges made and charges that could be made at premium audit. This brief analysis addresses the information that CG DS 07–Underground Storage Tanks Liability Declarations includes.

DESCRIPTION

This section includes the following information:

• Policy number

• Insurance company name
• Producer name
• Named insured
• Mailing address
• Policy period expressed as month, day, and year beginning at 12:01 A.M. at the named insured's mailing address

INSURING AGREEMENT

The insurance company agrees to provide the insurance this coverage form includes, subject to all its terms and conditions and the premium being paid.

LIMITS OF INSURANCE

This section includes the following information:

• Underground Storage Tank Incident Limit

This is similar to the Each Occurrence limit in CG 00 01–Commercial General Liability Coverage Form. It is the most paid in any one underground storage tank incident for all damages for bodily injury, property damage, and corrective action costs.

• Aggregate Limit

This is similar to the Aggregate Limit in CG 00 01. It is the total paid for the sum of all underground storage tank incidents during the policy period.

• Defense Expense Amount

The Defense Expense Amount is unique to this policy. It is the most the insurance company pays for defense expenses in one policy period, regardless of the number of incidents, claims made, or suits brought. The insurance company's obligation to defend ends when the Defense Expense Amount is used up, even if it must still reimburse for settlement amounts or corrective action costs. Defense expenses above this amount are the named insured's responsibility.

RETROACTIVE DATE

Coverage is written on a claims-made basis. As a result, a retroactive date must be entered in the space provided. It may be the effective date of the policy or any previous date the insurance company and the named insured agree to. It is automatically the effective date of the policy if a retroactive date is not entered in the space provided.

DESCRIPTION OF BUSINESS

This section identifies the form of business because Section II–Who Is An Insured breaks down based on the form of business. The eligible forms of business are:

• Individual
• Partnership
• Joint Venture
• Limited Liability Company
• Organization other than the above. This includes a corporation.

Note: If there is more than one named insured, there may be more than one form of business.

This section also has a space to enter a description of the insured business or operations and the address of the covered location. This information is critical because coverage applies to only tanks listed and described at the locations entered in this space.

Note: Policy language states that coverage applies to only the tanks listed and described on the declarations at the locations specified. However, CG DS 07 does not have enough space to list and describe the tanks covered. This means a separate supplemental schedule or some other way to list and describe such tanks that is consistent with policy language and references may have to be attached.

DEDUCTIBLES

The deductible amount must be entered in the space provided. The word "None" must be entered if there is no deductible.

EPA IDENTIFICATION & PREMIUM

This section includes the following information:

• Environmental Protection Agency (EPA) Identification Number, if applicable
• Advance Premium Amount
• State Tax or Other Tax, if applicable
• Total Premium Subject to Audit
• Premium Payment Provisions:
• At Inception
• At Each Anniversary

This applies only when the policy period is more than one year and the named insured pays the premium in annual installments.

• Audit Period, if applicable:
• Annually
• Semi-annually
• Quarterly
• Monthly

ENDORSEMENTS

This section has spaces for the endorsement numbers that apply and that are included when the policy is issued.

STATEMENT OF COVERAGE

This section states that this declarations, CG 00 42, the common policy conditions, and any endorsements included form the complete policy.

SIGNATURES

This section has spaces for the countersigning agent's name and the date the policy was countersigned. The facsimile signatures of the insurance company officers may also be entered in this area if they are not entered elsewhere.