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RULE §78.40Insurance Requirements

(a) Unless otherwise indicated, persons licensed under this chapter are required to obtain commercial general liability insurance in the amount of not less than $1 million per occurrence and to maintain the coverage for the term of the license.

  (1) Governmental entities that are self-insured are not required to purchase insurance under this chapter.

  (2) A non-governmental entity (business entity or individual) may be self-insured if it submits to the department for approval an affidavit signed by an authorized official of the entity or by the individual stating that it has a net worth of at least $1 million. A current financial statement indicating a net worth of at least $1 million must accompany the affidavit. A new affidavit and current financial statement must be submitted with each renewal application.

  (3) An individual required to have insurance must obtain individual coverage unless covered under the policy of the individual's employer or employed by a governmental entity or a person approved by the department to be self-insured.

(b) Insurance policies required under this section must be currently in force and must be written by:

  (1) an insurance company authorized to do business in Texas; or

  (2) an eligible Texas surplus lines insurer as defined in the Texas Insurance Code, Chapter 981 (relating to Surplus Lines Insurance); or

  (3) a Texas registered risk retention group; or

  (4) a Texas registered purchasing group.

(c) The certificate of insurance must be complete, including all applicable coverages and endorsements, and must name the Texas Department of Licensing and Regulation as a certificate holder.

(d) An applicant for a license or license renewal must provide proof of insurance in one of the following forms:

  (1) a copy of the required current certificate of insurance; or

  (2) if claiming to be self-insured, a statement that it is a governmental entity, or, if a non-governmental entity, the affidavit and current financial statement described under subsection (a); or

  (3) proof that the licensee by whom the applicant is employed has the required insurance.

(e) The commission or the executive director may impose an administrative penalty or take other disciplinary action against any person who fails to have the current insurance required under this section.

  (1) If a policy is canceled or materially changed, the licensee shall notify the department in writing not later than 30 calendar days before the change or cancellation effective date. A licensed company may file a single notification for the company and its licensed employees.

  (2) If a policy expires or is canceled or materially changed, the licensee shall cease engaging in mold-related activities. Before resuming such activities, the licensee must either:

    (A) provide to the department a certificate of the renewal or replacement policy; or

    (B) submit to the department the affidavit and current financial statement described under subsection (a) and receive departmental approval to be self-insured.

  (3) If an individual licensee ceases to be covered under an employer's insurance, the individual must obtain replacement coverage either individually or through a new employer. The individual must submit the documentation required under subsection (d) to the department before engaging in mold-related activities.

(f) Applicants for a registration or renewal of a registration issued under this chapter shall comply with subsection (d)(3), if applicable.

Source Note: The provisions of this §78.40 adopted to be effective November 1, 2017, 42 TexReg 4619

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