(1) The department must ascertain that the means establishing financial responsibility filed by the applicant fully complies with the act, and fully satisfies the rules adopted thereunder, prior to issuance of any license. The information demonstrating financial responsibility must be submitted on forms approved by the department. The licensee must provide a complete copy of the insurance policy upon written request from the department. The applicator has the duty and responsibility to ensure that the policy obtained provides damage coverage for every pesticide proposed to be applied during the licensing period. In the event the applicator's proposed policy of insurance contains exclusions against coverage of one or more pesticides the applicator proposed to apply, then and in that event, the applicator may submit the proposed insurance policy to provide such coverage as it affords. The applicator must, in addition, provide evidence of financial responsibility to indemnify the public against pesticide damage arising out of the use, misuse, or attempted use of each and every pesticide proposed to be used or applied which is excluded from coverage of the proposed liability insurance policy. The amount of additional coverage must be in the minimum amount required under ARM 4.10.101.
(2) The department must be notified by registered mail ten days prior to any proposed modification of the liability insurance policy requested by the licensee. Such modification must be approved by the department before the proposed modification can become final. A notice of ten days by registered mail to the department is also required prior to an insurer cancelling the licensee's liability insurance, and prior to settlement of claims made against the licensee's liability insurance.