Texas Labor Code - Section 407A.201. Admission Of Employer As Member
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§ 407A.201. ADMISSION OF EMPLOYER AS MEMBER. (a) An
employer who joins an approved workers' compensation
self-insurance group shall:
(1) submit an application for membership to the board
of trustees or its administrator; and
(2) enter into the indemnity agreement as required by
Section 407A.056.
(b) The board of trustees shall maintain as a permanent
record the employer's application for membership and the approval
of the application.
(c) The membership of an individual member of a group is
subject to cancellation by the group as provided by the bylaws of
the group. An individual member may also elect to terminate
participation in the group. The group shall notify the
commissioner and the commissioner of workers' compensation of the
cancellation or termination of a membership not later than the 10th
day after the date on which the cancellation or termination takes
effect and shall maintain coverage of each canceled or terminated
member until the 30th day after the date of the notice, at the
terminating member's expense, unless before that date the
commissioner of workers' compensation notifies the group that the
canceled or terminated member has:
(1) obtained workers' compensation insurance
coverage;
(2) become a certified self-insurer; or
(3) become a member of another group.
(d) The group shall pay each workers' compensation claim for
which a member of the group incurs liability during the period of
membership. A member who elects to terminate membership or whose
membership is canceled by the group remains jointly and severally
liable for the workers' compensation obligations of the group and
its members incurred during the canceled or terminated member's
period of membership.
(e) A member of a group is not relieved of workers'
compensation liabilities incurred during its period of membership
except through payment by the group or the member of required
workers' compensation benefits.
(f) The insolvency or bankruptcy of a member does not
relieve a group or any other member of the group of liability for
the payment of any workers' compensation benefits incurred during
the insolvent or bankrupt member's period of membership.
Added by Acts 2003, 78th Leg., ch. 275, § 1, eff. Sept. 1, 2003.
Amended by Acts 2005, 79th Leg., ch. 265, § 3.072, eff. Sept. 1,
2005.
Section: 407A.056 407A.057 407A.101 407A.151 407A.152 407A.153 407A.154 407A.201 407A.251 407A.252 407A.301 407A.302 407A.303 407A.304 407A.351
Last modified: August 10, 2007
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