CG-5586-1 Master Insurance Guaranty

U.S. DEPARTMENT OF
HOMELAND SECURITY
U.S. COAST GUARD
CG-5586-1 (Rev. 05-06)

MASTER INSURANCE GUARANTY

OMB Approval No.1625-0046
(Expires 09-06)

Insurance Co. Form No.

MASTER INSURANCE GUARANTY FURNISHED AS EVIDENCE OF FINANCIAL RESPONSIBILITY FOR BUILDERS,
REPAIRERS, SCRAPPERS, LESSORS, OR SELLERS OF VESSELS UNDER THE OIL POLLUTION ACT OF 1990 AND
THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT, AS AMENDED
The undersigned insurer or insurers (“Insurer”) hereby certifies that for purposes for complying with the financial
responsibility provisions of the Oil Pollution Act of 1990 (“OPA 90”) and the Comprehensive Environmental Response,
Compensation, and Liability Act, as amended (“CERCLA”), (referred to collectively as the “Acts”),

(Name of Assured Operator)
and any owner (collectively referred to as “Assured”) of each vessel covered hereunder are insured by it against liability
for costs and damages to which the Assured may be subject under either section 1002 of OPA 90, as limited by section
1004(a), or section 107(a)(1) of CERCLA, as limited by sections 107(c)(1)(A) and (B), or both, in an amount equal to the
total applicable amount determined in accordance with the Applicable Amount Table below, respecting each covered
vessel. This guaranty is applicable in relation to any vessel for which either or both Acts require financial responsibility
and which the Assured holds for purposes of construction, repair, scrapping, lease, or sale.
The amount and scope of insurance coverage hereby provided by the Insurer is not conditioned or dependent in
any way upon any contract, agreement, or understanding between the Assured and Insurer. Coverage hereunder is for
purposes of evidencing financial responsibility under each of the Acts, separately, at the levels in effect at the time of the
incident(s), release(s), or threatened release(s) giving rise to claims.

(Name of Agent)
With offices at

,
(Address)

is designated as the Insurer’s agent in the United States for service of process for purposes of this guaranty and for
receipt of notices of designation and presentations of claims under the Acts. If the designated agent cannot be served
due to death, disability, or unavailability, the Director, Coast Guard National Pollution Funds Center (“Center”), is the
agent for these purposes.
The Insurer consents to be sued directly with respect to any claim, including any claim by right of subrogation, for
costs and damages arising under section 1002 of OPA 90, as limited by section 1004(a), or section 107(a)(1) of CERCLA,
as limited by sections 107(c)(1)(A) and (B), or both, against the Assured. However, in any direct action under OPA 90,
the Insurer’s liability per vessel per incident shall not exceed the amount determined under part I of the Applicable Amount
Table below and, in any direct action under CERCLA, the Insurer’s liability per vessel per release or threatened release
shall not exceed the amount determined under part II of the Applicable Amount Table below. The Insurer’s obligation
hereunder with respect to any one incident or release or threatened release shall be reduced by all payments or
succession of payments for costs and damages, to one or more claimants, made by or on behalf of the Assured under
OPA 90 or CERCLA or both, as applicable, for which the Assured is liable. The Insurer shall be entitled to invoke only the
following rights and defenses in any direct action:
(1)

The incident, release, or threatened release was caused by the willful misconduct of the Assured.

An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it
displays a valid OMB control number.
The Coast Guard estimates that the average burden for completing this form is 30 minutes. You may submit any
comments concerning the accuracy of this burden estimate or any suggestion for reducing the burden to the:
Commandant (NPFC), U.S. Coast Guard, 2100 2nd Street, SW, Washington, DC 20593-0001 or Office of Management
and Budget, Paperwork Reduction Project (1625-0046), Washington, DC 20503.

Page 2 of CG-5586-1 (Rev. 05-06)

Master Insurance Guaranty Form CG-5586-1 No.

(2)

Any defense that the Assured may raise under the Acts.

(3)

A defense relating to the amount of a claim or claims, filed in any action in any court or other proceeding,
that exceeds the amount of this guaranty with respect to an incident or with respect to a release or
threatened release.

(4)

A defense relating to the amount of a claim or claims that exceeds the amount of this guaranty, which
amount is based on the gross tonnage of a covered vessel as entered on the vessel’s International
Tonnage Certificate or other official, applicable certificate of measurement, except where the guarantor
knew or should have known that the applicable tonnage certificate was incorrect.

(5)

The claim is not one made under either of the Acts.

No more than four Insurers (including lead underwriters) may execute this guaranty. If more than one Insurer
executes this guaranty, each Insurer binds itself jointly and severally for the purpose of allowing joint action or actions
against any or all of the Insurers, and for all other purposes each Insurer is bound for the payment of sums only in
accordance with the percentage of participation set forth opposite the name of the Insurer below. If no percentage of
participation is indicated for an Insurer or Insurers, the liability of such Insurer or Insurers shall be joint and several for the
total of the unspecified portions.

(Name of lead guarantor)
is designated as the lead guarantor having authority to bind all guarantors for actions of guarantors under the Acts,
including but not limited to receipt of designation of source, advertisement of a designation, and receipt and settlement of
claims (inapplicable if only one Insurer executes this guaranty).
The insurance evidenced by this guaranty shall be applicable only in relation to each incident, release, or
threatened release occurring on or after the effective date of this guaranty and before the termination date of this guaranty
and shall be applicable only in relation to each incident, release, and threatened release giving rise to claims under
section 1002 of OPA 90 or section 107(a)(1) of CERCLA, or both, with respect to any covered vessel. The termination
date is 30 days after the date of receipt by the Center of written notice that the Insurer has elected to terminate the
insurance evidenced by this guaranty and has so notified the above named Assured operator.
Termination of this guaranty does not affect the liability of the Insurer in connection with an incident, release, or
threatened release occurring prior to the date the termination becomes effective.
Title 33 CFR part 138 governs this guaranty.
Effective Date:
(day/month/year)

(Name of Insurer)

(Percentage of Participation)

(Mailing Address)
By:
(Signature of Official Signing on Behalf of Insurer)

(Typed Name and Title of Signer)
[Note: For each additional Insurer, provide information in the same manner as for Insurer above.]

Page 3 of CG-5586-1 (Rev. 05-06)

APPLICABLE AMOUNT TABLE

(I)

Applicable Amount Under the Oil Pollution Act of 1990.
VESSEL TYPE
Tank vessel
(except a tank vessel on which no
liquid hazardous material in bulk is
being carried as cargo or cargo
residue, and on which the only oil
carried as cargo or cargo residue is
an animal fat or vegetable oil, as
those terms are used in section 2
of the Edible Oil Regulatory
Reform Act (Pub. L.104-55))
Tank vessel

VESSEL’S GROSS TONS
Over 300 gross tons* but not to
exceed 3,000 gross tons.

The greater of $2,000,000 or
$1,200 per gross ton.

Over 3,000 gross tons.

The greater of $10,000,000 or
$1,200 per gross ton.

Over 300 gross tons.*

The greater of $500,000 or $600
per gross ton.

(except a tank vessel on which no
liquid hazardous material in bulk is
being carried as cargo or cargo
residue, and on which the only oil
carried as cargo or cargo residue is
an animal fat or vegetable oil, as
those terms are used in section 2
of the Edible Oil Regulatory
Reform Act (Pub. L.104-55))
Vessel other than a tank vessel

APPLICABLE AMOUNT

(specified above)

*This minimum gross ton limit does not apply to any vessel using the waters of the U.S. Exclusive Economic Zone to transship or lighter oil
destined for a place subject to the jurisdiction of the United States (as specified in 33 CFR 138.12(a)(1)).

(II)

Applicable Amount Under the Comprehensive Environmental Response, Compensation, and Liability Act,
as Amended.
VESSEL TYPE

(III)

APPLICABLE AMOUNT

Vessel over 300 gross tons carrying hazardous
substance as cargo

The greater of $5,000,000 or $300 per gross ton.

Any other vessel over 300 gross tons

The greater of $500,000 or $300 per gross ton.

Total Applicable Amount = Maximum applicable amount calculated under (I) plus maximum applicable amount
calculated under (II).