(a) An employer, as defined by Labor Code §406.001,
who terminates workers' compensation insurance coverage shall file
written notice of the termination of coverage with the division not
later than the 10th day after the date on which the employer notified
the insurance carrier under Labor Code §406.007 to terminate
the coverage.
(b) The employer shall file the notice of termination
required by subsection (a) of this section in the form and manner
prescribed by the division. The notice shall contain:
(1) a statement of no workers' compensation insurance
coverage, including policy termination effective date, policy number,
insurance company name, date the termination notice was sent to the
insurance company, and date employees were or will be notified;
(2) a statement of whether the employer had a death,
injuries that resulted in the injured employee's absence from work
for more than one day, or knowledge of an occupational disease since
the last report of no coverage;
(3) the employer business name;
(4) the federal employer identification number (FEIN);
(5) the employer's business mailing address;
(6) the employer's business type;
(7) the employer's North American Industry Classification
System (NAICS) code;
(8) additional business locations (including name,
FEIN, and address concerning each additional location); and
(9) the signature date and the name, title, telephone
number, email address, and signature of the person providing the information
required by this subsection.
(c) Termination of coverage by an employer takes effect
on the later of:
(1) the 30th day after the date of filing the notice
with the division under this section; or
(2) the cancellation date of the policy.
(d) Coverage shall be extended until the date on which
the termination of coverage takes effect and the employer is obligated
for premiums due for that period.
(e) Notwithstanding the other provisions of this section,
if an employer switches workers' compensation insurance carriers,
the original policy is considered canceled as of the date the new
coverage takes effect. Employers shall notify the prior insurance
carrier of the cancellation date of the original policy, in writing,
within 10 days of the effective date.
(f) This section is effective January 1, 2013.
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