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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 14REGULATIONS FOR LIQUEFIED NATURAL GAS (LNG)
SUBCHAPTER AGENERAL APPLICABILITY AND REQUIREMENTS
RULE §14.2031Insurance Requirements

(a) LNG licensees or applicants for license shall comply with the minimum amounts of insurance specified in Table 1 of this section.

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(b) Before LP-Gas Operations grants or renews a license, the applicant shall submit either:

  (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 and contains all required information. The forms must be issued by an insurance company authorized or accepted by the Texas Department of Insurance; or

  (2) properly completed documents demonstrating the applicant's compliance with the self-insurance requirements in §14.2034 of this title (relating to Self-Insurance Requirements).

  (3) Certificates of insurance shall be continuous in duration and shall remain on file with LP-Gas Operations during the entire period that the license is in effect.

  (4) Documentation other than a certificate of insurance may be accepted by LP-Gas Operations as evidence of required insurance provided that the documentation contains the same information as required on a certificate of insurance. The alternative documentation may be accepted for a period not to exceed 45 days. During the temporary period, a licensee shall file with LP-Gas Operations an amended certificate of insurance which complies with the requirements of this section.

(c) Each licensee shall file LNG Form 2999 or other written notice with LP-Gas Operations 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 LP-Gas Operations.

(d) A licensee or applicant for a license that does not employ or contemplate employing any employees to be engaged in LNG-related activities in Texas shall file LNG Form 2996B in lieu of filing a workers' compensation insurance form, including employers' liability insurance, or alternative accident and health insurance coverage. The licensee or applicant for a license shall file the required forms with LP-Gas Operations before hiring any person as an employee engaged in LNG-related work.

(e) A Category 25 or 35 licensee, applicant for a license, or an ultimate consumer that does not operate or contemplate operating a motor vehicle equipped with an LNG cargo container or does not transport or contemplate transporting LNG by vehicle in any manner shall file LNG Form 2997B in lieu of a 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 forms with LP-Gas Operations before operating a motor vehicle equipped with an LNG cargo container or transporting LNG by vehicle in any manner.

(f) A Category 15 licensee or applicant for a license that does not engage in or contemplate engaging in any LNG-related operations in Texas that would be covered by completed operations and product liability insurance shall file LNG Form 2998B in lieu of filing a completed operations and product liability insurance form. The licensee or applicant for a license shall file the required forms with LP-Gas Operations before engaging in any operations that require completed operations and product liability insurance.

(g) A licensee or applicant for a license that does not engage in or contemplate engaging in any LNG-related operations that would be covered by general liability insurance shall file LNG Form 2998B in lieu of a general liability insurance form. The licensee or applicant for a license shall file the required forms with LP-Gas Operations before engaging in any operations that require general liability insurance.

(h) Notwithstanding the requirements specified in Table 1 of subsection (a) of this section that each licensee carry a policy of workers' compensation insurance, the licensee may protect its employees by obtaining accident and health insurance coverage from an insurance company authorized to write such policies in Texas as an alternative to workers' compensation coverage. The alternative coverage shall be in the amounts specified in Table 1 of subsection (a) of this section.

(i) Each licensee shall promptly notify LP-Gas Operations of any change in insurance coverage or insurance carrier by filing a properly completed revised certificate of insurance; insurance Acord™ form; other form prepared and signed by the insurance carrier that contains all the information required by the certificate of insurance; or documents demonstrating the applicant's compliance with the self-insurance requirements set forth in §14.2034 of this title (relating to Self-Insurance Requirements). Failure to promptly notify LP-Gas Operations of a change in the status of insurance coverage or insurance carrier may result in an enforcement action and an administrative penalty.


Source Note: The provisions of this §14.2031 adopted to be effective May 26, 2003, 28 TexReg 4100; amended to be effective November 12, 2007, 32 TexReg 8128; amended to be effective December 24, 2012, 37 TexReg 9921

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