|
Company Operational Manual(COM) Insurance 5.6 Federal and California certificates of Financial Responsibility |
Doc No.: COM 5.6
Revision: 1 Date: 15 Oct 2024 Issued by: DPA Approved by: MD |
1 APPLICATION
This document applies to Brokers, Insurance Department, Marine Department, and Vessel Accounts/Accounts Payable.
2 PURPOSE
The purpose of this document is to provide instructions regarding the application and renewal process of the Federal and California Certificate of Financial Responsibility (COFR). The Federal COFR is required for vessels trading to the US, while the California COFR (CA COFR) is required for vessels calling California waters and is an additional requirement to the Federal COFR.
3 FEDERAL COFR APPLICATION AND RENEWAL
3.1 Process workflow
The workflow for this process is illustrated in Figure 1 below.
Figure 1. Federal COFR Application and Renewal Process
3.2 Responsibilities within the workflow
| Function | Responsibility |
|---|---|
| Brokers | Provide SIGCO application forms, Letter of Authority for applying Federal COFR should vessel require to call at USA ports. Provide COFR Premium Quotation. |
| Insurance | Apply for Federal COFR for vessel calling at USA ports. |
| Vessel Accounts/Accounts Payable | Arrange funding approval and AP to process payment for invoice received and provide proof of payment. |
3.3 Brokers’ activities
3.3.1 New COFR applications
Brokers shall:
- Provide SIGCO application forms, Letter of Authority for applying Federal COFR should vessel require to call at USA ports.
- Provide the quotation premium once completed forms are received.
- Provide the quotation premium agreement form for Owner’s approval and signatory.
- Provide invoice for COFR fees.
- Provide COFR Confirmation.
Figure 1. Federal COFR Application and Renewal Process
3.3.2 Renewal COFR notification
Brokers shall:
- Send renewal reminder and quotation for Owners’ consideration (2 months prior to expiry).
- Provide invoice for COFR fees.
- Provide COFR Confirmation.
3.4 Marine Department activities
3.4.1 New COFR applications
Insurance Department shall:
- Complete and forward SIGCO application forms, Letter of Authority for applying Federal COFR should vessel require to call at USA ports.
- Forward completed signed forms and documents required to be forwarded to Broker for quotation.
- Forward the Quotation Premium Agreement to Fleet Group for Owner’s approval and signatory.
- Forward invoice to Accounts for payment once the Quotation Premium Agreement is signed by Owners.
- Forward COFR confirmation to respective Fleet Group concern.
3.4.2 Renewal COFR applications
Insurance Department shall:
- Forward renewal reminder and quotation for Owners’ consideration (2 months prior to expiry) if vessel have intention to call at USA ports.
- Forward quotation premium agreement form for Owner’s approval and signatory.
- Forward invoice to Accounts for payment.
- Forward COFR confirmation to respective Fleet Group concern.
3.5 Vessel accounts/accounts payable activities
3.5.1 Payment process
Vessel Accounts/Account Payable shall:
- Approve funds for the invoice received.
- Process payment for invoice issued.
- Provide Proof of Payment for Flag State (if required).
4 CALIFORNIA COFR (CA COFR) APPLICATION AND RENEWAL
4.1 Process workflow
The workflow for this process is illustrated in Figure 2 below.
Figure 2. California COFR Application and Renewal Process
4.2 Responsibilities within the workflow
| Function | Responsibility |
|---|---|
| CA COFR Authority | Issuing authority of the California COFR certificate. Sending of renewal reminder 2 months prior expiry. |
| Marine Department | Coordinating with Fleet Group for necessary details required for the application, and with Vessel Accounting/Accounts Payable for payment if required. Submission of application and payment details to issuing authority and forwarding certificate to Fleet Group when received. |
| Vessel Accounting/Accounts Payable | Vessel Accountant to obtain funding approval and Accounts Payable to provide remittance details. |
Figure 2. CA COFR Application and Renewal Process
4.3 CA COFR Authority activities
4.3.1 Renewal application
The issuing authority shall send the renewal reminder and application form 2 months prior to expiry of the certificate. Renewal reminders for tankers and non-tanker vessels will come from separate email addresses:
- Tankers: cacofr-tank@wildlife.ca.gov
- Non-tankers: cacofr-nontank@wildlife.ca.gov
Note:
- Applications for non-tanker vessels will require an application fee.
4.3.2 Issuance of CA COFR
Certificates are issued by the CA COFR issuing authority and no hard copies are provided. They are valid for a second year from the date of issue only if the insurance is current.
For more information, visit: California COFR Information
Note:
- The issuing authority will request for the renewed P&I certificate of entry each year to maintain the validity of the certificates for each vessel. Status of the certificates can be verified at the following link:
4.4 Marine department activities
4.4.1 Certificate application and renewal
Marine department shall:
- Request MD to provide details required for completing the application (e.g., single/double hull; gross tonnage; cargo capacity, etc.).
- Obtain signature from Head of Business Unit for the application.
- Request Vessel Accounting/Accounts Payable to process application fee payment for non-tankers. No invoice is provided for this application fee.
- Submit a new application in the case of change of vessel’s name or change in Registered Owner’s name.
- Submit application form, valid P&I certificate of entry, and payment advice (where applicable) to issuing authority.
- Forward issued certificate to Fleet Group.
Note:
- The issuing authority has advised that the application for non-tankers will only be processed upon proof of payment. As such, applications for non-tankers should contain all three required documents. Incomplete emails will not be saved by the authority due to mailbox size limitations.
For new applications, there are separate forms for tankers and non-tankers which can be obtained from the website mentioned in section 5.2 above. Also, check if the vessel has a valid Federal COFR, without which the CA COFR will be invalid.
Note:
- For urgent applications, vessel’s California ETA to be included in email subject for the issuing authority to prioritize accordingly.
4.5 Vessel accounting/accounts payable activities
4.5.1 Payment of application fee
Vessel Accountant/Accounts Payable shall:
- Obtain funding approval for the application fee.
- Process the payment request provide.
Note:
- A fee is only required for non-tanker vessel applications.