Texas Labor Code - Section 406.008. Cancellation Or Nonrenewal Of Coverage By Insurance Company; Notice
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Texas Lawyer > Labor Code > Texas Labor Code - Section 406.008. Cancellation Or Nonrenewal Of Coverage By Insurance Company; Notice
§ 406.008. CANCELLATION OR NONRENEWAL OF COVERAGE BY
INSURANCE COMPANY; NOTICE. (a) An insurance company that cancels
a policy of workers' compensation insurance or that does not renew
the policy by the anniversary date of the policy shall deliver
notice of the cancellation or nonrenewal by certified mail or in
person to the employer and the division not later than:
(1) the 30th day before the date on which the
cancellation or nonrenewal takes effect; or
(2) the 10th day before the date on which the
cancellation or nonrenewal takes effect if the insurance company
cancels or does not renew because of:
(A) fraud in obtaining coverage;
(B) misrepresentation of the amount of payroll
for purposes of premium calculation;
(C) failure to pay a premium when due;
(D) an increase in the hazard for which the
employer seeks coverage that results from an act or omission of the
employer and that would produce an increase in the rate, including
an increase because of a failure to comply with:
(i) reasonable recommendations for loss
control; or
(ii) recommendations designed to reduce a
hazard under the employer's control within a reasonable period; or
(E) a determination made by the commissioner of
insurance that the continuation of the policy would place the
insurer in violation of the law or would be hazardous to the
interest of subscribers, creditors, or the general public.
(b) The notice required under this section shall be filed
with the division.
(c) Failure of the insurance company to give notice as
required by this section extends the policy until the date on which
the required notice is provided to the employer and the division.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 1995, 74th Leg., ch. 76, § 9.50(a), eff. Sept. 1, 1995;
Acts 2005, 79th Leg., ch. 265, § 3.027, eff. Sept. 1, 2005.
Section: 406.001 406.002 406.003 406.004 406.005 406.006 406.007 406.008 406.009 406.010 406.011 406.012 406.031 406.032 406.033
Last modified: August 10, 2007
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