CG-5586-1 Master Insurance Guaranty

U.S. DEPARTMENT OF
HOMELAND SECURITY
U.S. COAST GUARD
CG-5586-1 (Rev. 10-08)

MASTER INSURANCE GUARANTY

OMB Approval No.1625-0046
(Expires 7/31/2012)

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 referenced at 33 CFR 138.80(f),
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 referenced at 33 CFR 138.80(f)(1) 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
referenced at 33 CFR 138.80(f)(2). 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 hereby agrees that the Insurer shall be entitled to invoke, in any direct action, only the rights and
defenses set forth in 33 CFR 138.80(d).
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.
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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.]

U.S. Dept. of Homeland Security, USCG, CG-5586-1, Rev. 10-08

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Insurance Guaranty Form CG-5586-1 No.

APPLICABLE AMOUNT TABLE

(I)

Applicable Amount Under the Oil Pollution Act of 1990 reference 33 CFR 138.80(f)(1).

(II)

Applicable Amount Under the Comprehensive Environmental Response, Compensation, and Liability Act, as
Amended reference 33 CFR 138.80(f)(2).

(III)

Total Applicable Amount reference 33 CFR 138.80(f)(3)= applicable amount calculated under (I) plus applicable
amount calculated under (II).

Privacy Act Notice 
Authority: 33 CFR 138.80, 33 U.S.C. § 2716, and 42 U.S.C. § 9608, authorizes the collection of this information.
Purpose: The Coast Guard will use this information as evidence that the owners and operators, including demise charterers, of certain
vessels have established and are maintaining evidence of financial responsibility (i.e., ability to pay) sufficient to meet the maximum
amount of liability to which they could be subjected under the Oil Pollution Act of 1990 (33 U.S.C. 2702(a); 33 U.S.C. 2704) (OPA'90),
and the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. 9607) (CERCLA), in
the event of a discharge, or substantial threat of discharge, of oil or a release, or threatened release, of hazardous substances, into the
navigable waters, adjoining shorelines or the exclusive economic zone of the United States.
Routine Uses: This information will be used by and disclosed to Coast Guard personnel and contractors or other agents who need the
information to assist in activities related to the OPA'90 and CERCLA evidence of financial responsibility requirements, including
personnel responsible for the storage and ultimate disposal of the information. Additionally, the Coast Guard may share the information
with facility operators, law enforcement or other government agencies as necessary to respond to actual or threatened discharges of oil or
releases of hazardous substances, or pursuant to its published Privacy Act system of records notice.
Disclosure: Furnishing this information (including your SSN) is voluntary; however, if the requested information is not furnished, the
Coast Guard will be unable to certify compliance by vessel owners and operators, including demise charterers, with the applicable
OPA'90 and CERCLA evidence of financial responsibility requirements. This may result in the withholding or revocation of vessel
clearance and other sanctions as specified OPA'90, 33 U.S.C. 2716(b) and 42 U.S.C. 9608(a).
U.S. Dept. of Homeland Security, USCG, CG-5586-1, Rev. 10-08