Why do tank owners need clean-up and third party liability coverages? Don't state groundwater protection acts meet EPA guidelines?
State groundwater protection acts fulfill only the necessary cleanup provisions of the EPA and state regulations. Tank owners still need to purchase third party liability insurance for personal injury and property damage claims. Since December 22, 1998, Texas-based tank systems are no longer eligible for protection from the UST Clean-Up Fund. TOMIC now offers this protection.

How can lower rates be offered by TOMIC than those offered by other commericial insurers?
TOMIC was formed by petroleum marketers who were unable to use their group purchasing power to obtain third party insurance. By forming an insurance company, the marketers were able to purchase excess of loss and aggregate insurance from an A-rated insurance company. Program members control the coverage and cost elements while being afforded the security of a nationally respected insurer. The company is charging a premium that should more than cover loss and defense costs associated with claims covered by its insurance policies. Its low operating expenses are attributable to: (1) underwriting and loss control services are specialized and focused on a single type risk exposure; and (2) the company does not employ a sales force. These savings are passed on to the policyholders.

What happens if losses develop higher than the actuaries have projected?
TOMIC currently utilizes excess insurance and reinsurance to guard against higher than anticipated losses. If the company needs to increase premiums to cover losses, the resulting premium will be less than that of other commercial carriers since a smaller portion of TOMIC's premium is being utilized to pay operating expenses.

Who determines the program's underwriting criteria?
Underwriting and loss control standards are influenced by the members who elect their Board of Directors and Advisory Council.

What type of applicants will be considered for coverage by the program?
The Tank Owner Members Insurance Company program is available to any petroleum storage tank owner or operator, regardless of the type of business being conducted by the applicant or the number of tanks the applicant owns or operates, providing the entity meets the underwriting criteria.

Are there any age restrictions on the tanks that can be covered?
No. Any tank, regardless of age or construction will be considered; however, the insurance company may request proof of all tank upgrades or inspections on any tanks in question.

What coverages are provided under the policy?
All policies provide personal injury and property damage liability protection. Clean-up costs liability is offered for tank systems that meet and can demonstrate the 1998 technical regulations.

What limits does the policy provide?
The policy affords a $1,000,000 limit which applies to each incident with a $2,000,000 annual aggregate. Higher limits are available.

Is the policy "claims made" or "occurance"?
The policy is a "claims made" policy with extended reporting features.

Are prior acts covered by the policy?
No. Any pollution incident that was known or should have been known prior to the original policy inception date is not covered. Clean-up cost liability applies to pollution that commences after a stated retroactive date for each site.

What are estimated premiums for UST's?
The estimated annual tank systems premium ranges from $300 to $800 depending upon tank and site conditions.

What is the minimum annual policy premium?
$450.

Are "Minimum Site Assessments" a requirement?
Not for most sites. We strongly recommend assessments be considered to eliminate misunderstandings if clean-up claims are filed for future releases.

What deductibles are available?
$4,000 per pollution incident is the standard deductible. Higher deductibles are available and will reduce premium costs.

How are claims to be handled?
All pollution incidents are to be reported immediately to the Company in Fort Worth. Confirmation will be promptly given. An evaluation and engineering report will be conducted when appropriate.

How is the program marketed?
The coverage is marketed on a direct basis. Phone 800.336.1338; Fax 817.339.3138; Email: service@tankowners.com.

Can any insurance agent participate and receive commissions for this program?
No. The Company's rate structure does not allow for the additional cost of agents' commission.

What must be done when I decide to participate in the program offered by TOMIC?
Upon your request, we will send an insurance application or you can print an Application off our site to complete and return to the program underwriter. An insurance proposal and description of the program will then be sent to you. This proposal will include the amount of the annual insurance premium and payment options.

Why should I choose TOMIC?
TOMIC's policy provides valuable protection at the member priviledge to its members. We are the leading writer of this kind of coverage in our marketplace.