| | A Market-Based Analysis of Financial Assurance Issues |
| | 0,28 | | MB | Associated with U.S. Natural Resource Damage Liability |
| | 60 | | stron |
| | 929 | | ID | Resources for the Future |
| | 2000 | | rok |
| | Table of Contents |
| | 1. Introduction |
| | 1.1 Financial Assurance in the U.S. |
| | 1.2 The Intersection of NRD Law and Financial Assurance Regulations |
| | 1.3 Organization of the Report |
| | 2. The Conceptual Justification for Financial Assurance Requirements |
| | 2.1 Liability and Cost Internalization |
| | 2.2 Financial Assurance as a Performance Bond |
| | 2.3 Reduced Litigation and Administrative Costs |
| | 2.4 The Impact on Firm Decision-Making |
| | 3. Natural Resource Damages Law |
| | 3.1 NRDs Under Federal Law |
| | 3.1.1 The physical, legal, and economic definitions of natural resource damage |
| | 3.1.2 The distinction between remediation and restoration |
| | 3.1.3 Administrative procedures and authority |
| | 3.2 NRDs Under State Law |
| | 3.3 NRDs and Citizen Standing to Sue |
| | 3.3.1 The common law basis |
| | 3.3.2 The federal basis |
| | 4. NRD Damage Assessment and Valuation |
| | 4.1 The Regulatory Development of Assessment Procedures |
| | 4.2 The Current Rules |
| | 5. Financial Responsibility for Natural Resource Damages |
| | 5.1 Overview of the Rules |
| | 5.2 Required Coverage and Liability Limits |
| | 5.3 Are the Coverage Limits Appropriate? |
| | 5.4 Allowable Mechanisms |
| | 5.4.1 Insurance and Surety Bonds |
| | 5.4.2 Self-Insurance |
| | 5.4.3 Financial Guaranty (Indemnity) |
| | 5.5 Financial Assurance for NRDs Associated with Onshore Facilities |
| | 5.6 State FR Requirements |
| | 6. Insurer & PRP Concerns |
| | 6.1 “Direct Action” and Insurer Refusals to Provide Coverage |
| | 6.2 Risk, NRD Assessment Methods, and Insurability |
| | 6.3 Calls for Legislative Reform |
| | 7. The Insurance Market |
| | 7.1 Compliance Costs |
| | 7.2 Coverage Availability |
| | 7.3 The Scale and Frequency of NRD Claims |
| | 7.4 Insurance Bias, Adverse Selection, and Moral Hazard |
| | 8. Financial Assurance in a Broader Context |
| | 8.1 Coverage Rates |
| | 8.2 Retroactivity and the Availability of Affordable Coverage |
| | 9. Voluntary Provision of Environmental Insurance |
| | 10. Conclusion |
| | 11. Addendum: Liability for Genetically Modified Organisms |