Ohio Admin. Code 3745-66-41 - Definitions- financial requirements
(A) When used in rules
3745-66-40
to
3745-66-48
of the Administrative Code, the following terms have the following meanings:
(1) "Closure plan" means the plan for closure
prepared in accordance with the requirements
of rule
3745-66-12
of the Administrative Code.
(2)
"Current closure cost estimate:
" means the most recent of the estimates prepared in
accordance with paragraphs (A), (B), and (C) of
rule
3745-66-42
of the Administrative Code.
(3)
"Current post-closure cost estimate" means the most recent of the estimates
prepared in accordance with paragraphs (A), (B), and
(C) of rule
3745-66-44
of the Administrative Code.
(4)
"Parent corporation" means a corporation which directly owns at least fifty per
cent of the voting stock of the corporation which is the facility owner or
operator; the latter corporation is deemed a "subsidiary" of the parent
corporation.
(5) "Post-closure
plan" means the plan for post-closure care prepared in accordance with
the requirements of rule
3745-66-18
rules
3745-66-17
to
3745-66-20
of the Administrative Code.
(B) The following terms are used in the
specifications for the financial test for closure and post-closure care and
liability coverage. The definitions are intended to assist in the understanding
of rules
3745-66-40
to
3745-66-48
of the Administrative Code and are not intended to limit the meaning of terms
in a way that conflicts with generally accepted accounting practices.
(1) "Assets" means all existing and all
probable future economic benefits obtained or controlled by a particular
entity.
(2) "Current assets" means
cash or other assets or reasonably expected to be realized in cash or sold or
consumed during the normal operating cycle of the business.
(3) "Current liabilities" means obligations
whose liquidation is reasonably expected to require the use of existing
resources properly classifiable as current assets or the creation of other
current liabilities.
(4) "Current
plugging and abandonment cost-estimate
cost estimate " means the most recent of the estimates
prepared in accordance with rule
3745-34-36
of the Administrative Code.
(5)
"Independently audited" refers to an audit performed by an independent
certified public accountant in accordance with generally accepted auditing
standards.
(6) "Liabilities" means
probable future sacrifices of economic benefits arising from present
obligations to transfer assets or provide services to other entitles in the
future as a result of past transactions or events
(7) "Net working capital" means current
assets minus current liabilities.
(8) "Net worth" means total assets minus
total liabilities and is equivalent to owner's equity.
(9) "Tangible net worth" means the tangible
assets that remain after deducting liabilities; such assets would not include
such intangibles such as good will and rights to patents or
royalties.
(C) In the
liability insurance requirements the terms "bodily injury" and "property
damage" shall have the meanings given these terms by applicable Ohio law.
However, these terms do not include those liabilities which, consistent with
standard industry practice, are excluded from coverage in liability policies
for bodily injury and property damage. The
agency
Ohio EPA intends the meanings of
other terms used in the liability insurance requirements to be consistent with
their common meanings with in the insurance industry. The definitions of
several of the terms in paragraphs (C)(1) to (C)(4) of this rule are intended
to assist in the understanding of rules
3745-66-40
to
3745-66-48
of the Administrative Code and are not intended to limit their meanings in a
way that conflict with general insurance industry usage.
(1) "Accidental occurrence" means an
accident, including continuous or repeated exposure to conditions, which
results in bodily injury or property damage neither expected nor intended from
the standpoint of the insured.
(2)
"Legal defense costs" means any expenses that an insurer incurs in defending
against claims of third parties brought under the terms and conditions of
a
an insurance
policy.
(3) "Nonsudden accidental
occurrence" means an occurrence which takes place over time and involves
continuous or repeated exposure.
(4) "Sudden accidental occurrence" means an
occurrence which is not continuous or repeated in nature.
(D) "Substantial business relationship" means
the extent of a business relationship necessary under applicable Ohio law to
make a guarantee contract issued incident to that relationship valid and
enforceable. A "substantial business relationship" must arise
arises from
a pattern of recent or ongoing business transactions, in addition to the
guarantee itself, such that a currently existing business relationship between
the guarantor and the owner or operator is demonstrated to the satisfaction of
the director.
Notes
Promulgated Under: 119.03
Statutory Authority: 3734.12
Rule Amplifies: 3734.12
Prior Effective Dates: 08/26/1983 (Emer.), 11/29/1983, 05/29/1985 (Emer.), 08/29/1985, 11/13/1987, 06/29/1990, 12/07/2000, 02/16/2009
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