.07 Insurance Requirement for Licensees.

A. A person licensed under this chapter shall insure, and at all times keep insured, in that licensed person's name or as a co-insurer, all of the grain received into the actual physical control or possession of the licensed person.

B. The amount of insurance shall be the fair market value of the grain and shall include coverage against theft, loss or damage by fire, lightning, inherent explosion, water, windstorm, cyclone, tornado, or other act of God.

C. If any loss or damage to grain or to the warehouse or warehouses occurs, whether the loss was insured against, the dealer shall immediately notify the Secretary, and at the grain dealer's own expense, promptly take the steps necessary to collect any monies which may be due as indemnity for the loss or damage.

D. The applicant shall submit one of the following items as proof of insurance:

(1) An insurance policy certified to be true by the insurance company or agency; or

(2) An insurance binder or other evidence of insurance that contains or refers to other papers accompanying these forms that contain the information specified in B, C, and E of this regulation, if the policy is:

(a) Not yet available from the insurance company, and

(b) Made available for inspection by the Department within 90 days of the policy's effective date.

E. The Department may not accept as proof of insurance any insurance policy that does not contain a clause requiring the insurer to notify the Secretary at least 45 days in advance of any policy's cancellation or nonrenewal.

F. A person licensed under this chapter may not receive grain into that person's physical control or possession unless insured as required by this regulation.