(1)  The department shall 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 shall be submitted on forms of the type approved by the department. License application approval shall not be granted until a complete copy of the bond, verification of the indemnity trust fund deposit, or a certificate or binder of insurance coverage is filed along with the license application. The licensee shall provide a complete copy of the insurance policy upon written request of the department. In the event the applicator options to utilize a liability insurance policy as the means of establishing financial responsibility, then and in that event, the applicator has the duty and responsibility, to ascertain that the policy proposed to be submitted provides chemical damage coverage for every pesticide proposed to be applied during the licensing period. In the event applicator's proposed policy of insurance contains exclusions against coverage of one or more chemicals applicator proposes to apply, then and in that event, the applicator may submit the proposed insurance policy to provide such coverage as it affords but the applicator must, in addition thereto, provide evidence of financial responsibility to indemnify the public against chemical damage arising out of the use, misuse, or attempted use of each and every chemical proposed to be used or applied which is excluded from coverage of the proposed liability insurance policy. The amount of additional coverage shall be in the minimum amount required under ARM 4.10.101 and the means to be utilized shall be the options provided in ARM 4.10.102 (1)  (b)  or (c)  .

(2)  The department shall be notified by registered mail ten (10)  days prior to any proposed modification of the liability insurance policy or surety bond requested by the licensee. Such modification must be approved by the department before the proposed modification can become final. Ten (10)  days notice by registered mail to the department is required prior to the surety or insurer cancelling the licensee's surety bond or liability insurance, and prior to settlement of claims made against licensee's bond or insurance. Modification of the indemnity trust fund, for any reason by any party, shall not be completed until the department has approved the proposed modification by written authorization to the licensee and the bank, trust, or other financial official or institution.

(a)  If the financial responsibility is to be cancelled, the requirements and procedures established in ARM 4.10.108 shall be followed.