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.
The application for self-insurance includes:
a department application form which:
(A) must be fully completed,
(B) provide past claim history,
(C) contact information, and
(D) information concerning claim
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
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.
The certificate issued by the department:
will be issued to the individual entity
named on the vehicle registration only.
if two entities are named, both entities can be named on the
(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.
Admin. Code §
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