Texas Labor Code - Section 407.064. General Security Requirements
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§ 407.064. GENERAL SECURITY REQUIREMENTS. (a) Each
applicant shall provide security for incurred liabilities for
compensation through a deposit with the division, in a combination
and from institutions approved by the commissioner, of the
following security:
(1) cash or negotiable securities of the United States
or of this state;
(2) a surety bond that names the commissioner as
payee; or
(3) an irrevocable letter of credit that names the
commissioner as payee.
(b) If an applicant who has provided a letter of credit as
all or part of the security required under this section desires to
cancel the existing letter of credit and substitute a different
letter of credit or another form of security, the applicant shall
notify the division in writing not later than the 60th day before
the effective date of the cancellation of the original letter of
credit.
(c) An estimate of the applicant's incurred liabilities for
compensation must be signed and sworn to by an accredited casualty
actuary and submitted with the application.
(d) The sum of the deposited securities must be at least
equal to the greater of:
(1) $300,000; or
(2) 125 percent of the applicant's incurred
liabilities for compensation.
(e) If an applicant is granted a certificate of authority to
self-insure, any interest or other income that accrues from cash or
negotiable securities deposited by the applicant as security under
this section while the cash or securities are on deposit with the
division shall be paid to the applicant quarterly.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 2005, 79th Leg., ch. 265, § 3.053, eff. Sept. 1, 2005.
Section: 407.044 407.045 407.046 407.047 407.061 407.062 407.063 407.064 407.065 407.066 407.067 407.068 407.081 407.082 407.083
Last modified: August 10, 2007
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