(a) A licensee or registered manufacturer shall not
perform any activity authorized by its license or registration under §13.61
of this title (relating to License Categories, Container Manufacturer
Registration, Fees, and Application for Licenses, Manufacturer Registrations,
and Renewals) unless insurance coverage required by this section is
in effect. CNG licensees, registered manufacturers, or applicants
for license or manufacturer registration shall comply with the minimum
amounts of insurance specified in Table 1 of this section, with the
self-insurance requirements in §13.63 of this title (relating
to Self-Insurance Requirements), or the irrevocable letter of credit
requirements in §13.64 of this title (relating to Irrevocable
Letter of Credit), if applicable. Registered manufacturers are not
eligible for self-insurance. Before AFS grants or renews a manufacturer
registration, an applicant for manufacturer registration shall submit
the documents required by paragraph (1) of this subsection. Before
AFS grants or renews a license, an applicant for license shall submit:
Attached Graphic
(1) an insurance Acord™ form or any other form
approved by the Texas Department of Insurance that has been prepared
and signed by the insurance carrier containing all required information.
The forms must be issued by an insurance company authorized or accepted
by the Texas Department of Insurance;
(2) properly completed documents demonstrating the
applicant's compliance with the self‑insurance requirements
in §13.63 of this title; or
(3) properly completed documents demonstrating the
applicant's compliance with the irrevocable letter of credit requirements
in §13.64 of this title.
(b) A licensee, applicant for license, or an ultimate
consumer that does not operate or contemplate operating a motor vehicle
equipped with a CNG cargo container or does not transport or contemplate
transporting CNG by vehicle in any manner may file CNG Form 1997B
in lieu of filing motor vehicle bodily injury and property damage
insurance form, if this certificate is not otherwise required. The
licensee or applicant for a license shall file the required insurance
form with AFS before operating a motor vehicle equipped with a CNG
cargo container or transporting CNG by vehicle in any manner.
(c) A licensee, registered manufacturer, or applicant
for a license or manufacturer registration that does not engage in
or contemplate engaging in any activities that would be covered by
general liability insurance may file CNG Form 1998B in lieu of filing
a general liability insurance form. The licensee, registered manufacturer,
or applicant for a license or manufacturer registration shall file
the required insurance form with AFS before engaging in any activities
that require general liability insurance.
(d) A licensee or applicant for license that does not
employ or contemplate employing anyone to be engaged in CNG related
activities in Texas may file CNG Form 1996B in lieu of filing a workers'
compensation insurance form, including employer's liability insurance
or alternative accident and health insurance coverage. The licensee
or applicant for a license shall file the required insurance form
with AFS before hiring any person as an employee engaged in CNG related
work.
(e) A licensee, registered manufacturer, or applicant
for a license or manufacturer registration that does not engage in
or contemplate engaging in any CNG activities that would be covered
by completed operations or products liability insurance, or both,
may file CNG Form 1998B in lieu of a completed operations and/or products
liability insurance form. The licensee, registered manufacturer, or
applicant for a license or manufacturer registration shall file the
required insurance form with AFS before engaging in any activities
that require completed operations and/or products liability insurance.
(f) A licensee may protect its employees by obtaining
accident and health insurance coverage from an insurance company authorized
to write such policies in this state as an alternative to workers'
compensation coverage. The alternative coverage shall be in the amounts
specified in Table 1 of this section.
(g) Each licensee or registered manufacturer shall
file CNG Form 1999 or other written notice with AFS at least 30 calendar
days before the cancellation of any insurance coverage. The 30‑day
period commences on the date the notice is actually received by AFS.
(h) Each licensee or registered manufacturer shall
promptly notify AFS of any change in insurance coverage or insurance
carrier by filing a revised Acord™ form; other form approved
by the Texas Department of Insurance that has been prepared and signed
by the insurance carrier containing all required information; or documents
demonstrating the applicant's compliance with the self‑insurance
requirements set forth in §13.63 of this title. Failure to promptly
notify AFS of a change in the status of insurance coverage or insurance
carrier may result in an enforcement action and an administrative
penalty.
(i) A state agency or institution, county, municipality,
school district, or other governmental subdivision may meet the requirements
of this section for workers' compensation, general liability and/or
motor vehicle liability insurance. The requirements may be met by
submitting evidence of self-insurance that complies with the requirements
of §13.63 or §13.64 of this title. CNG Form 1995 may be
filed as evidence of self-insurance, if self-insurance is permitted
by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources
Code, §116.036.
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Source Note: The provisions of this §13.62 adopted to be effective November 15, 1990, 15 TexReg 5941; amended to be effective October 15, 1993, 18 TexReg 6457; amended to be effective November 29, 1993, 18 TexReg 8457; amended to be effective June 5, 2006, 31 TexReg 4604; amended to be effective November 12, 2007, 32 TexReg 8127; amended to be effective December 24, 2012, 37 TexReg 9917; amended to be effective February 15, 2021, 46 TexReg 1035 |