37 Tex. Admin. Code § 25.7 - Self-Insurance

Current through Reg. 47, No. 14; April 8, 2022

(a) Companies with 26 or more vehicles owned and registered in their name, and who meet the minimum financial qualifications may apply for a self-insurance certificate by submitting a completed application for self-insurance.
(b) The application for self-insurance includes:
(1) a department application form which:
(A) must be fully completed,
(B) provide past claim history,
(C) contact information, and
(D) information concerning claim procedures.
(2) the applicant company's financial statement which must be in the form of an audit by an independent Certified Public Accountant completed within 1 year from the date the application is filed with the department, and
(3) any other documentation required by the department to make a determination as to the company's ability to satisfy claims.
(c) The department will base its determination of the applicant's ability to pay claims on the following:
(1) a review of the financial statements submitted to determine if cash, marketable securities, and accounts receivable equal the normal monthly operating expenses plus a sum of $255,000. The $255,000 represents that amount needed to satisfy three $85,000 claims arising from traffic crashes,
(2) information supplied on the application regarding past claim history, and
(3) other information provided by the applicant demonstrating the ability to satisfy claims.
(d) The certificate issued by the department:
(1) will be issued to the individual entity named on the vehicle registration only.
(A) if two entities are named, both entities can be named on the certificate.
(B) all named parties must have submitted the required financial statements.
(2) will contain information regarding the claim process, and
(3) will be an agreement, signed by an authorized agent of the entity seeking self insurance, stating the self-insurer will pay the same judgments in the same amount as an insurer would be obligated to pay under an owner's motor vehicle liability insurance policy up to $85,000 per crash.
(e) Self-insurance certificates are issued for 36 months. To maintain continuous certification, applications for renewal of a self-insurance certificate must be submitted within 90 days of the expiration date of the current certificate.

Notes

37 Tex. Admin. Code § 25.7
The provisions of this §25.7 adopted to be effective June 22, 2004, 29 TexReg 5946; amended to be effective October 15, 2008, 33 TexReg 8545; amended to be effective July 18, 2012, 37 TexReg 5320

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