Texas Administrative Code
Title 28 - INSURANCE
Part 2 - TEXAS DEPARTMENT OF INSURANCE, DIVISION OF WORKERS' COMPENSATION
Chapter 114 - SELF-INSURANCE
Section 114.16 - Withdrawal from Self-Insurance

Universal Citation: 28 TX Admin Code ยง 114.16

Current through Reg. 49, No. 38; September 20, 2024

(a) Insuring agreements under Labor Code § 407.045(a-1) filed for the commissioner's approval as a part of an adequate program to withdraw from self-insurance must meet the following criteria:

(1) The form of an insuring agreement must be that of a standard workers' compensation policy providing statutory limits with an approved company specific endorsement under Texas Insurance Code § 2052.002(b) providing coverage for all open, reopened, and incurred but not reported claims against the self-insured employer for the entire period of time it operated as a certified self-insurer.

(2) The insurance policy must be issued by an insurance company as defined by Texas Labor Code § 401.011(28) that has not been determined to be in hazardous financial condition by the commissioner of insurance pursuant to Chapter 8 of this title (relating to Hazardous Condition).

(3) The policy period must be retrospective providing coverage for the entire period of time the employer operated as a certified self-insurer.

(4) The policy as endorsed must be noncancelable by either the insurance company or the certified self-insured employer for any reason.

(5) The insurance company issuing an insuring agreement that covers all the workers' compensation liabilities of a certified self-insurer becomes the workers' compensation insurance carrier for the liabilities covered for all purposes of the Texas Workers' Compensation Act and division rules.

(b) Withdrawals from self-insurance must comply with all applicable statutes and all applicable rules promulgated by the commissioner of insurance and the commissioner of workers' compensation.

(c) Notwithstanding the security deposit requirements in § 114.4 of this title (relating to Security Deposit Requirements), the commissioner may review and approve modifications to previously approved withdrawals from self-insurance, including modifications to security deposit requirements.

(d) The commissioner retains discretionary authority to approve, disapprove, or require modification of any proposed program for withdrawal from self-insurance presented by a certified self-insurer.

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