| (a) Companies with 26 or more vehicles owned and registered
in their name, and who meet the minimum financial qualifications may
apply for a self-insurance certificate by submitting a completed application
for self-insurance.
(b) The application for self-insurance includes:
(1) a department application form which:
(A) must be fully completed,
(B) provide past claim history,
(C) contact information, and
(D) information concerning claim procedures.
(2) the applicant company's financial statement which
must be in the form of an audit by an independent Certified Public
Accountant completed within 1 year from the date the application is
filed with the department, and
(3) any other documentation required by the department
to make a determination as to the company's ability to satisfy claims.
(c) The department will base its determination of the
applicant's ability to pay claims on the following:
(1) a review of the financial statements submitted
to determine if cash, marketable securities, and accounts receivable
equal the normal monthly operating expenses plus a sum of $255,000.
The $255,000 represents that amount needed to satisfy three $85,000
claims arising from traffic crashes,
(2) information supplied on the application regarding
past claim history, and
(3) other information provided by the applicant demonstrating
the ability to satisfy claims.
(d) The certificate issued by the department:
(1) will be issued to the individual entity named on
the vehicle registration only.
(A) if two entities are named, both entities can be
named on the certificate.
(B) all named parties must have submitted the required
financial statements.
(2) will contain information regarding the claim process,
and
(3) will be an agreement, signed by an authorized agent
of the entity seeking self insurance, stating the self-insurer will
pay the same judgments in the same amount as an insurer would be obligated
to pay under an owner's motor vehicle liability insurance policy up
to $85,000 per crash.
(e) Self-insurance certificates are issued for 36 months.
To maintain continuous certification, applications for renewal of
a self-insurance certificate must be submitted within 90 days of the
expiration date of the current certificate.
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| Source Note: The provisions of this §25.7 adopted to be effective June 22, 2004, 29 TexReg 5946; amended to be effective October 15, 2008, 33 TexReg 8545; amended to be effective July 18, 2012, 37 TexReg 5320 |
