16 Tex. Admin. Code § 13.63 - Self-Insurance Requirements
(a) General
qualifications. AFS may approve the application of a CNG licensee to qualify as
a self-insurer if such licensee furnishes a true and accurate statement of its
financial condition and other evidence which establishes to the satisfaction of
AFS the ability of such licensee to satisfy its obligations for the minimum
insurance requirements specified in §
13.62 of this title (relating to
Insurance Requirements). Registered manufacturers are not eligible for
self-insurance. This section shall not apply to AFS' licensing requirements for
worker's compensation insurance, including employer's liability
coverage.
(b) Applicant guidelines.
In addition to filing CNG Form 1027, Application for Qualification as
Self-Insurer, an applicant applying for self-insurer status covering general
liability, including premises and operations coverage, shall submit materials
that will allow AFS to determine whether:
(1)
the net worth of the applicant is adequate in relationship to the size of
operations and the extent of its request for self-insurance authority. The
applicant should demonstrate that it will maintain a net worth sufficient to
ensure that it will be able to meet its statutory obligations to the public to
pay all claims relating to general liability, including premises and operations
coverage in the event of a claim;
(2) the applicant has a sound self-insurance
program. The applicant shall demonstrate that it has established, and will
maintain an insurance program that will protect the public against all claims
involving CNG activities to the same extent as the minimum limits applicable
pursuant to Table 1 in §
13.62(a) of this
title (relating to Insurance Requirements). Such a program may include, but not
be limited to, one or more of the following:
(A) reserves;
(B) sinking funds;
(C) third party financial
guarantees;
(D) parent company or
affiliate sureties;
(E) excess
insurance coverage; or
(F) other
similar arrangements; and
(3) the applicant presents evidence that it
meets the requirements for motor carrier self-insurance promulgated by the
Texas Department of Transportation.
(c) Other securities or agreements. AFS may
consider applications for approval of other securities or agreements, or may
require any other document(s) which may be necessary to ensure such application
satisfies that the security or agreement offered will afford adequate security
for protection of the public.
(d)
Periodic reports. The applicant shall file semiannual reports and annual
statements reflecting the applicant's financial condition and status of its
self-insurance program with AFS during the period of its self-insurer status by
March 10 and September 10 of each year.
(e) Duration of self-insurer status. AFS may
approve the applicant as a self-insurer for any specific time period, or for an
indefinite period until revoked by AFS.
(f) Revocation of a self-insurer status. AFS
may at any time, upon 10 days notice to the applicant, require the applicant to
appear and demonstrate that it continues to have adequate financial resources
to pay all general liability, including premises and operations coverage
claims, and that it remains in compliance with the other requirements of this
section. If the applicant fails to so demonstrate, its self-insurer status
shall be revoked and it may be ineligible for self-insurance in the
future.
(g) A state agency or
institution, county, municipality, school district, or other governmental
subdivision may meet the requirements for general liability and/or motor
vehicle liability insurance or workers' compensation coverage of §
13.62 of this title if permitted
by the Texas Workers' Compensation Act, Texas Labor Code, Title 5, Subtitle A;
and the Texas Natural Resources Code, §
116.036, by
submitting CNG Form 1995 to AFS.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.