40.1-51.9:2 - Financial responsibility requirements for contract fee inspectors
§ 40.1-51.9:2. Financial responsibility requirements for contract feeinspectors.
A. Contract fee inspectors inspecting or certifying regulated boilers orpressure vessels in the Commonwealth shall maintain evidence of theirfinancial responsibility, including compensation to third parties, for bodilyinjury and property damage resulting from, or directly relating to, aninspector's negligent inspection or recommendation for certification of aboiler or pressure vessel.
B. Documentation of financial responsibility, including documentation ofinsurance or bond, shall be provided to the Chief Inspector within thirtydays after certification of the inspector. The Chief Inspector may revoke aninspector's certification for failure to provide documentation of financialresponsibility in a timely fashion.
C. The Safety and Health Codes Board is authorized to promulgate regulationsrequiring contract fee inspectors, as a condition of their doing business inthe Commonwealth, to demonstrate financial responsibility sufficient tocomply with the requirements of this chapter. Regulations governing theamount of any financial responsibility required by the contract fee inspectorshall take into consideration the type, capacity and number of boilers orpressure vessels inspected or certified.
D. Financial responsibility may be demonstrated by self-insurance, insurance,guaranty or surety, or any other method approved by the Board, or anycombination thereof, under the terms the Board may prescribe. A contract feeinspector whose financial responsibility is accepted by the Board under thissubsection shall notify the Chief Inspector at least thirty days before theeffective date of the change, expiration, or cancellation of any instrumentof insurance, guaranty or surety.
E. Acceptance of proof of financial responsibility shall expire on theeffective date of any change in the inspector's instrument of insurance,guaranty or surety, or the expiration date of the inspector's certification.Application for renewal of acceptance of proof of financial responsibilityshall be filed thirty days before the date of expiration.
F. The Chief Inspector, after notice and opportunity for hearing, may revokehis acceptance of evidence of financial responsibility if he determines thatacceptance has been procured by fraud or misrepresentation, or a change incircumstances has occurred that would warrant denial of acceptance ofevidence of financial responsibility under this section or the requirementsestablished by the Board pursuant to this section.
G. It is not a defense to any action brought for failure to comply with therequirement to provide acceptable evidence of financial responsibility thatthe person charged believed in good faith that the owner or operator of aninspected boiler or pressure vessel possessed evidence of financialresponsibility accepted by the Chief Inspector or the Board.
(1996, c. 294.)