Texas Labor Code - Section 407.061. General Requirements
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§ 407.061. GENERAL REQUIREMENTS. (a) To be eligible for
a certificate of authority to self-insure, an applicant for an
initial or renewal certificate must present evidence satisfactory
to the commissioner and the association of sufficient financial
strength and liquidity, under standards adopted by the
commissioner, to ensure that all workers' compensation obligations
incurred by the applicant under this chapter are met promptly.
(b) The applicant must:
(1) be a business entity, or one of the consolidated
subsidiaries of the entity, that is required to register under the
Securities Act of 1933 (15 U.S.C. Section 77a et seq.) and furnish
financial information prepared in accordance with the requirements
for those business entities; or
(2) annually furnish audited financial statements
comparable in form and manner of preparation to those filed by a
business entity required to register under the Securities Act of
1933 (15 U.S.C. Section 77a et seq.).
(c) The applicant must present a plan for claims
administration that is acceptable to the commissioner and that
designates a qualified claims servicing contractor.
(d) The applicant must demonstrate the existence of an
effective safety program for each location in the state at which it
conducts business.
(e) The applicant must provide to the commissioner a copy of
each contract entered into with a person that provides claims
services, underwriting services, or accident prevention services
if the provider of those services is not an employee of the
applicant. The contract must be acceptable to the commissioner and
must be submitted in a standard form adopted by the commissioner, if
the commissioner adopts such a form.
(f) The commissioner shall adopt rules for the requirements
for the financial statements required by Subsection (b)(2).
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 2005, 79th Leg., ch. 265, § 3.050, eff. Sept. 1, 2005.
Section: 407.041 407.042 407.043 407.044 407.045 407.046 407.047 407.061 407.062 407.063 407.064 407.065 407.066 407.067 407.068
Last modified: August 10, 2007
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