Texas Labor Code - Section 407.065. Specific Security Requirements
Legal Research Home >
Texas Lawyer > Labor Code > Texas Labor Code - Section 407.065. Specific Security Requirements
§ 407.065. SPECIFIC SECURITY REQUIREMENTS. (a) A
security deposit must include within its coverage all amounts
covered by terminated surety bonds or terminated excess insurance
policies.
(b) A surety bond, irrevocable letter of credit, or document
indicating issuance of an irrevocable letter of credit must be in a
form approved by the commissioner and must be issued by an
institution acceptable to the commissioner. The instrument may be
released only according to its terms but may not be released by the
deposit of additional security.
(c) The certified self-insurer shall deposit the security
with the comptroller on behalf of the division. The comptroller may
accept securities for deposit or withdrawal only on the written
order of the commissioner.
(d) On receipt by the division of a request to renew,
submit, or increase or decrease a security deposit, a perfected
security interest is created in the certified self-insurer's assets
in favor of the commissioner to the extent of any then unsecured
portion of the self-insurer's incurred liabilities for
compensation. That perfected security interest transfers to cash
or securities deposited by the self-insurer with the division after
the date of the request and may be released only on:
(1) the acceptance by the commissioner of a surety
bond or irrevocable letter of credit for the full amount of the
incurred liabilities for compensation; or
(2) the return of cash or securities by the division.
(e) The certified self-insurer loses all right to, title to,
interest in, and control of the assets or obligations submitted or
deposited as security. The commissioner may liquidate the deposit
and apply it to the certified self-insurer's incurred liabilities
for compensation either directly or through the association.
(f) If the commissioner determines that a security deposit
is not immediately available for the payment of compensation, the
commissioner shall determine the appropriate method of payment and
claims administration, which may include payment by the surety that
issued the bond or by the issuer of an irrevocable letter of credit,
and administration by a surety, an adjusting agency, the
association, or through any combination of those entities approved
by the commissioner.
Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1423, § 12.12, eff. Sept. 1, 1997;
Acts 2005, 79th Leg., ch. 265, § 3.054, eff. Sept. 1, 2005.
Section: 407.045 407.046 407.047 407.061 407.062 407.063 407.064 407.065 407.066 407.067 407.068 407.081 407.082 407.083 407.101
Last modified: August 10, 2007
|
