(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.
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Source Note: The provisions of this §13.63 adopted to be effective November 15, 1990, 15 TexReg 5941; amended to be effective November 29, 1993, 18 TexReg 8457; amended to be effective June 5, 2006, 31 TexReg 4604; amended to be effective December 24, 2012, 37 TexReg 9917; amended to be effective February 15, 2021, 46 TexReg 1035; amended to be effective February 7, 2023, 48 TexReg 507 |