Texas Labor Code - Section 403.007. Funding Of Subsequent Injury Fund
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§ 403.007. FUNDING OF SUBSEQUENT INJURY FUND. (a) If a
compensable death occurs and no legal beneficiary survives or a
claim for death benefits is not timely made, the insurance carrier
shall pay to the division for deposit to the credit of the
subsequent injury fund an amount equal to 364 weeks of the death
benefits otherwise payable.
(b) The insurance carrier may elect or the commissioner may
order that death benefits payable to the fund be commuted on written
approval of the commissioner. The commutation may be discounted
for present payment at the rate established in Section 401.023,
compounded annually.
(c) If a claim for death benefits is not filed with the
division by a legal beneficiary on or before the first anniversary
of the date of the death of the employee, it is presumed, for
purposes of this section only, that no legal beneficiary survived
the deceased employee. The presumption does not apply against a
minor beneficiary or an incompetent beneficiary for whom a guardian
has not been appointed.
(d) If the insurance carrier makes payment to the subsequent
injury fund and it is later determined by a final award of the
commissioner or the final judgment of a court of competent
jurisdiction that a legal beneficiary is entitled to the death
benefits, the commissioner shall order the fund to reimburse the
insurance carrier for the amount overpaid to the fund.
(e) If the commissioner determines that the funding under
Subsection (a) is not adequate to meet the expected obligations of
the subsequent injury fund established under Section 403.006, the
fund shall be supplemented by the collection of a maintenance tax
paid by insurance carriers, other than a governmental entity, as
provided by Sections 403.002 and 403.003. The rate of assessment
must be adequate to provide 120 percent of the projected unfunded
liabilities of the fund for the next biennium as certified by an
independent actuary or financial advisor.
(f) The commissioner's actuary or financial advisor shall
report biannually to the department on the financial condition and
projected assets and liabilities of the subsequent injury fund.
The commissioner shall make the reports available to members of the
legislature and the public. The division may purchase annuities to
provide for payments due to claimants under this subtitle if the
commissioner determines that the purchase of annuities is
financially prudent for the administration of the fund.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 2001, 77th Leg., ch. 1456, § 10.02, eff. June 17, 2001;
Acts 2005, 79th Leg., ch. 265, § 3.015, eff. Sept. 1, 2005.
Section: 402.251 403.001 403.002 403.003 403.004 403.005 403.006 403.007 404.001 404.002 404.003 404.004 404.005 404.006 404.051
Last modified: August 10, 2007
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