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Hazardous Waste: Issues Surrounding Insurance Availability

RCED-88-2 Published: Oct 16, 1987. Publicly Released: Oct 16, 1987.
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Highlights

Pursuant to a legislative requirement, GAO provided information on the availability of insurance for individuals liable for the release of hazardous substances into the environment, particularly the: (1) judicial interpretation of pollution insurance policies; (2) frequency and severity of insurance claims; and (3) economic impact of pollution liability on the insurance market.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Determining the amounts that insurers are paying is difficult because the industry does not have centralized, comprehensive data on these indemnity payments. Congress should consider requiring insurers or responsible parties, as appropriate, to report to EPA the amounts of indemnity payments made to cover pollution cleanups and related third-party bodily and property damage.
Closed – Not Implemented
The Superfund law will come up for reauthorization in 1991, but there are no indications that Congress will implement the recommendation.

Recommendations for Executive Action

Agency Affected Recommendation Status
Environmental Protection Agency The Administrator, EPA, should establish specific milestones leading to the timely implementation of financial responsibility regulations for the risks associated with classes of facilities covered by CERCLA section 108(b).
Closed – Not Implemented
Because of limited market for environmental insurance, EPA does not plan to act on this recommendation at this time.

Full Report

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Topics

Environmental lawHazardous substancesIndustrial pollutionInsurance claimsInsurance companiesInsurance regulationLiability insurancePollution controlSafety standardsPollution