| (a) A licensee or registered manufacturer shall not
perform any activity authorized by its license or registration under
§9.6 of this title (relating to License Categories, Container
Manufacturer Registration, and Fees) unless insurance coverage required
by this section is in effect. LP-gas 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 or with the self-insurance requirements in subsection (i)
of this section, if applicable. Registered manufacturers are not eligible
for self-insurance. Before AFS grants or renews a manufacturer registration,
an applicant for a manufacturer registration shall submit the documents
required by paragraph (1) of this subsection. Before AFS grants or
renews a license, an applicant for a license shall submit either:
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; or
(2) properly completed documents demonstrating the
applicant's compliance with the self-insurance requirements set forth
in subsection (j) of this section.
(b) Each licensee or registered manufacturer shall
file LPG Form 999 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.
(c) A licensee or applicant for a license that does
not employ or contemplate employing any employee to be engaged in
LP-gas related activities in Texas may file LPG Form 996B 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 LP-gas related work.
(d) A licensee, applicant for a license, or an ultimate
consumer that does not operate or contemplate operating a motor vehicle
equipped with an LP-gas cargo container or does not transport or contemplate
transporting LP-gas by vehicle in any manner may file LPG Form 997B
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 insurance form
with AFS before operating a motor vehicle equipped with an LP-gas
cargo container or transporting LP-gas by vehicle in any manner.
(e) A licensee, registered manufacturer, or applicant
for a license or manufacturer registration that does not engage in
or contemplate engaging in any LP-gas activities that would be covered
by completed operations or products liability insurance, or both,
may file LPG Form 998B 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 operations
that require completed operations and/or products liability insurance.
(f) A licensee, registered manufacturer, or applicant
for a license or manufacturer registration that does not engage in
or contemplate engaging in any operations that would be covered by
general liability insurance may file LPG Form 998B 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 operations
that require general liability insurance.
(g) 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.
(h) A state agency or institution, county, municipality,
school district, or other governmental subdivision shall meet the
requirements of this section for workers' compensation, general liability,
and/or motor vehicle liability insurance. The requirements may be
met by filing LPG Form 995 with AFS as evidence of self-insurance,
if permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas
Natural Resources Code, §113.097.
(i) Self-insurance requirements.
(1) This subsection applies to a licensee's or a license
applicant's motor vehicle bodily injury and property damage liability
coverage and general liability coverage. A licensee or license applicant
shall not elect to self-insure for more than 12 consecutive months,
exclusive of the six-month period for which a letter of credit is
required to remain in effect pursuant to paragraph (4) of this subsection.
(2) A licensee or license applicant desiring to self-insure
shall file with AFS a properly completed LPG Form 28, Notice of Election
to Self-Insure and a properly completed LPG Form 28-A, Bank Declarations
Regarding Irrevocable Letter of Credit. The licensee or license applicant
shall attach to the LPG Form 28-A any documentation necessary to show
that the bank issuing the irrevocable letter of credit meets the requirements
in paragraph (5)(E) of this subsection.
(3) The irrevocable letter of credit shall be in an
amount that is no less than the total of all minimum insurance coverage
amounts required by the Commission in the Table in subsection (a)of
this section for every coverage for which the licensee or license
applicant seeks to self-insure.
(4) The irrevocable letter of credit shall be valid
until the expiration date shown on LPG Form 28, which shall be no
sooner than six months after the earlier of either:
(A) the expiration date of the license; or
(B) the effective date of insurance coverage.
(5) A letter of credit commemorated by LPG Form 28-Ashall:
(A) be irrevocable during its term;
(B) be payable to the Commission or Commission's designee
in part or in full as directed by the Commission in compliance with
an order from state or federal court;
(C) include a guarantee from the bank that issues the
letter of credit (irrevocable confirmed credit);
(D) not apply to the licensing requirements for worker's
compensation insurance including employers liability insurance or
alternative accident/health insurance; and
(E) be issued by a federally insured bank authorized
to do business in the State of Texas which meets or exceeds the following
requirements:
(i) Bank management shall attest that the bank is not
subject to any outstanding written enforcement action, agreement,
order, capital directive, or prompt corrective action directive issued
by a state or federal bank regulatory agency;
(ii) The bank shall be "well capitalized" as defined
in federal bank regulatory statutes with:
(I) a total risk-based capital ratio of 10% or greater;
(II) a Tier 1 risk-based capital ratio of 6% or greater;
and
(III) a leverage ratio of 5% or greater.
(iii) The bank shall have received a satisfactory or
better rating at its most recent Community Reinvestment Act (CRA)examination
by a federal bank regulatory agency;
(iv) The bank management shall attest that the full
amount of the letter of credit, when added to other indebtedness of
the licensee or applicant for license to the bank, is within the bank's
regulatory lending limit; and
(v) The issuing bank shall be in good standing with
the State Comptroller's Office regarding the payment of franchise
taxes and other obligations to the state.
(6) In addition to the requirements of §9.36 of
this title (relating to Report of LP-Gas Incident/Accident), within
30 days of the occurrence of any incident or accident involving the
business activities of a self-insured LP-gas licensee that results
in property damage or loss and/or personal injuries, the licensee
shall notify AFS in writing of the incident. The licensee shall include
in the notification a list of the names and addresses of any individuals
known to the licensee who may have suffered losses in the incident.
The licensee shall also provide written notice to all such individuals
of the licensee's status as being self-insured and of the expiration
date of the licensee's letter of credit.
(j) Each licensee or registered manufacturer shall
promptly notify AFS of any change in insurance coverage or insurance
carrier by filing a properly completed 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 subsection (i) of this section. 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.
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| Source Note: The provisions of this §9.26 adopted to be effective February 1, 2001, 26 TexReg 947; amended to be effective September 10, 2001, 26 TexReg 6883; amended to be effective March 31, 2003, 28 TexReg 2741; amended to be effective September 1, 2005, 30 TexReg 4810; amended to be effective November 12, 2007, 32 TexReg 8122; amended to be effective December 24, 2012, 37 TexReg 9913; amended to be effective January 6, 2020, 45 TexReg 127 |
