| (a) Insuring agreements under Labor Code §407.045(a-1)
filed for the commissioner's approval as a part of an adequate program
to withdraw from self-insurance must meet the following criteria:
(1) The form of an insuring agreement must be that
of a standard workers' compensation policy providing statutory limits
with an approved company specific endorsement under Texas Insurance
Code §2052.002(b) providing coverage for all open, reopened,
and incurred but not reported claims against the self-insured employer
for the entire period of time it operated as a certified self-insurer.
(2) The insurance policy must be issued by an insurance
company as defined by Texas Labor Code §401.011(28) that has
not been determined to be in hazardous financial condition by the
commissioner of insurance pursuant to Chapter 8 of this title (relating
to Hazardous Condition).
(3) The policy period must be retrospective providing
coverage for the entire period of time the employer operated as a
certified self-insurer.
(4) The policy as endorsed must be noncancelable by
either the insurance company or the certified self-insured employer
for any reason.
(5) The insurance company issuing an insuring agreement
that covers all the workers' compensation liabilities of a certified
self-insurer becomes the workers' compensation insurance carrier for
the liabilities covered for all purposes of the Texas Workers' Compensation
Act and division rules.
(b) Withdrawals from self-insurance must comply with
all applicable statutes and all applicable rules promulgated by the
commissioner of insurance and the commissioner of workers' compensation.
(c) Notwithstanding the security deposit requirements
in §114.4 of this title (relating to Security Deposit Requirements),
the commissioner may review and approve modifications to previously
approved withdrawals from self-insurance, including modifications
to security deposit requirements.
(d) The commissioner retains discretionary authority
to approve, disapprove, or require modification of any proposed program
for withdrawal from self-insurance presented by a certified self-insurer.
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