SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 2054.001 - Definitions
In this chapter: (1) "Board" means the board of directors of the company. (2) Repealed by Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 3B.056,...
- Texas Section 2054.002 - Reference To Texas Workers' Compensation Insurance Fund
A reference in state law to the Texas Workers' Compensation Insurance Fund means the Texas Mutual Insurance Company. Added by Acts 2005, 79th Leg., Ch....
- Texas Section 2054.003 - Operation As Domestic Mutual Insurance Company
(a) The company operates as a domestic mutual insurance company under Chapter 883. The company is subject to that chapter, but is not subject to...
- Texas Section 2054.004 - Insurance Company Under Texas Workers' Compensation Act
The company is an insurance company for purposes of Subtitle A, Title 5, Labor Code. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017),...
- Texas Section 2054.005 - Applicability Of Code
The company is subject to this code. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
- Texas Section 2054.006 - Authority Of Commissioner And Department
(a) The commissioner may regulate the company to the same extent that the commissioner may regulate a mutual insurance company. (b) The company is subject...
- Texas Section 2054.007 - Open Meetings Law And Open Records Law Not Applicable
Notwithstanding any other state law, Chapters 551 and 552, Government Code, do not apply to the company. Added by Acts 2005, 79th Leg., Ch. 727...
- Texas Section 2054.008 - Investigation Files
(a) In this section, "investigation file" means information the company compiles or maintains with respect to a company investigation authorized by law. (b) Repealed by...
SUBCHAPTER B BOARD OF DIRECTORS
- Texas Section 2054.009 - Conflicts With Certain Insurance Laws
To the extent of a conflict between this chapter and Chapter 883 or another law of this state applicable to a nonlife mutual insurance company,...
- Texas Section 2054.051 - Board Of Directors; Composition
(a) The company is governed by a board composed of nine members. (b) The governor, with the advice and consent of the senate, shall appoint...
- Texas Section 2054.052 - Qualifications
(a) Each board member must be a resident of this state. (b) An individual may not serve as a board member if the individual, another...
- Texas Section 2054.053 - Presiding Officer; Other Officers
(a) The governor shall designate a board member as the presiding officer to serve in that capacity at the pleasure of the governor. (b) The...
- Texas Section 2054.054 - Terms
(a) Board members serve staggered six-year terms, with the terms of three members expiring July 1 of each odd-numbered year. (b) A board member whose...
- Texas Section 2054.055 - Vacancies
(a) The governor shall fill a vacancy in the appointed board members by appointment with the advice and consent of the senate. (b) A vacancy...
- Texas Section 2054.056 - Grounds For Removal
(a) It is a ground for removal from the board if a member: (1) does not have at the time of appointment or election the...
- Texas Section 2054.057 - Procedures For Removal
(a) If the president of the company has knowledge that a potential ground for removal of a board member exists, the president shall notify the...
- Texas Section 2054.058 - Committees And Subcommittees
The board may create committees and subcommittees. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
- Texas Section 2054.059 - Meetings
(a) The board shall hold a meeting at least once each calendar quarter, at other times at the call of the presiding officer, and at...
- Texas Section 2054.060 - Quorum
Five board members constitute a quorum. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
SUBCHAPTER C MANAGEMENT OF COMPANY
- Texas Section 2054.061 - Compensation
A board member is entitled to receive: (1) fees for service on the board commensurate with industry standards; and (2) actual and necessary travel expenses...
- Texas Section 2054.101 - General Powers Of Board
The board has full authority over the company and may: (1) perform any act necessary or convenient to administer the company or in connection with...
- Texas Section 2054.102 - General Duties Of Board Relating To Workers' Compensation Insurance
The board shall: (1) provide for engaging in the business of workers' compensation insurance and for the delivery in this state of workers' compensation insurance...
- Texas Section 2054.103 - Appointment Of President
(a) The board shall appoint a president who serves at the pleasure of the board. (b) The president must have proven successful experience as an...
- Texas Section 2054.104 - Appointment Of Internal Auditor
The board shall appoint an internal auditor who serves at the pleasure of the board. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017),...
- Texas Section 2054.105 - Personal Liability Of Board Members, Officers, And Employees
In connection with the administration, management, or conduct of the company, the company's business, or a related matter, a board member, the president, or an...
- Texas Section 2054.106 - Principal Office
The board shall maintain the company's principal office in Travis County. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April...
- Texas Section 2054.107 - Certain Relationships With Other Insurers Prohibited
The company may not have: (1) an affiliate, spin-off, or subsidiary that writes a line of insurance other than workers' compensation insurance; or (2) interlocking...
SUBCHAPTER D OPERATION OF COMPANY; FINANCIAL ADMINISTRATION
- Texas Section 2054.108 - Program And Facility Accessibility
(a) The company shall comply with federal and state laws that relate to program and facility accessibility. (b) The president shall prepare and maintain a...
- Texas Section 2054.151 - Purposes Of Company
The company shall: (1) serve as a competitive force in the marketplace; (2) guarantee the availability of workers' compensation insurance in this state; and (3)...
- Texas Section 2054.152 - Payment Of Taxes, Fees, And Other Charges
The company shall pay the following in the same manner as a domestic mutual insurance company authorized to engage in the business of insurance and...
- Texas Section 2054.153 - Membership In Texas Property And Casualty Insurance Guaranty Association
(a) In this section, "association" means the Texas Property and Casualty Insurance Guaranty Association. (b) The company is: (1) a member of and protected by...
- Texas Section 2054.154 - Company Assets; State Liability
(a) All money, revenues, and other assets of the company belong solely to the company and are governed by the laws applicable to domestic mutual...
- Texas Section 2054.155 - Required Reserves
The company shall establish and maintain reserves for losses on an actuarially sound basis in accordance with Chapter 426. Added by Acts 2005, 79th Leg.,...
- Texas Section 2054.156 - Ratio Of Certain Premiums To Surplus
The company shall maintain a ratio of net written premiums on policies written after reinsurance to surplus of not more than three to one. Added...
SUBCHAPTER E EXAMINATIONS, REPORTS, AND FILINGS
- Texas Section 2054.157 - Dissolution Prohibited
The company may not be dissolved. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
- Texas Section 2054.201 - Examination By Department
(a) The department shall examine the company in the manner and under the conditions specified by Chapters 86 and 401 for the examination of insurers....
- Texas Section 2054.202 - Providing Information To Legislature
The company shall provide requested information to each appropriate legislative committee in the manner requested by the committee. Added by Acts 2005, 79th Leg., Ch....
- Texas Section 2054.203 - Annual Accounting Of Money Received And Disbursed
Each year, the company shall prepare a complete and detailed written report accounting for all money the company received and disbursed during the preceding fiscal...
- Texas Section 2054.204 - Annual Statements
(a) The company shall file annual statements with the department in the same manner as is required of other workers' compensation insurance companies. (b) The...
- Texas Section 2054.205 - Publication And Filing Of Audited Report
The board shall: (1) publish an independently audited report analyzing the company's activities and fiscal condition during the preceding fiscal year; and (2) file the...
- Texas Section 2054.206 - Additional Reports
The company shall file with the department all reports required of other workers' compensation insurance companies. Added by Acts 2005, 79th Leg., Ch. 727 (H.B....
SUBCHAPTER F GENERAL POWERS AND DUTIES RELATING TO INSURANCE
- Texas Section 2054.207 - Periodic Reports To Board
The president shall make periodic reports to the board regarding: (1) the company's status; and (2) the company's investments. Added by Acts 2005, 79th Leg.,...
- Texas Section 2054.251 - Ratemaking Authority
(a) Except as provided by this section, the board may propose rates to be charged by the company for insurance. (b) The board shall engage...
- Texas Section 2054.252 - Amounts Of Rates
Rates charged by the company for insurance must be set in amounts sufficient, when invested, to: (1) carry all claims to maturity; (2) meet the...
- Texas Section 2054.253 - Multitiered Premium Systems
(a) Notwithstanding any other provision of this code or another insurance law of this state, the company may establish multitiered premium systems to price workers'...
- Texas Section 2054.254 - Cash Dividends; Credit On Renewal Premium
(a) The company may pay a cash dividend or allow a credit on the renewal premium for a policyholder insured with the company, other than...
- Texas Section 2054.255 - Appointment Of Agent Not Required
(a) Notwithstanding any other provision of this code or another insurance law of this state, the company is not required to appoint a general property...
- Texas Section 2054.256 - Work Product Information
(a) Information submitted to the company by an insurance agent on behalf of an employer, including a policy expiration date, is the work product of...
SUBCHAPTER G ISSUANCE OF COVERAGE
- Texas Section 2054.257 - Payment Of Commission To Agent
The company shall pay an insurance agent a reasonable commission on a workers' compensation insurance policy that is written through the agent. Added by Acts...
- Texas Section 2054.301 - Application For Coverage
An application to the company for workers' compensation insurance coverage must be: (1) made on the form prescribed by the company; and (2) submitted directly...
- Texas Section 2054.302 - Policy Forms
The company shall use the uniform policy and standard policy forms prescribed by the department under Section 2052.002. Added by Acts 2005, 79th Leg., Ch....
- Texas Section 2054.303 - Denial Of Coverage Based On Credit Risk
The company may refuse to write insurance coverage for an applicant that the company identifies as a credit risk unless the applicant, before a policy...
SUBCHAPTER H COMPANY AS INSURER OF LAST RESORT
- Texas Section 2054.304 - Cancellation And Nonrenewal
The company may cancel or refuse to renew coverage on a policyholder as provided by Section 406.008, Labor Code. Added by Acts 2005, 79th Leg.,...
- Texas Section 2054.351 - Insurer Of Last Resort
(a) Except as provided by Section 2054.304 and this subchapter, the company may not refuse to insure a risk that tenders: (1) the necessary premium;...
- Texas Section 2054.352 - Required Declination Of Certain Risks
(a) In this section, "good faith" means honesty in fact in any conduct or transaction. (b) The company shall decline to insure a risk if:...
- Texas Section 2054.353 - Required Insurance Of Certain Commonly Owned Or Controlled Entities
If the company suspects fraud or identifies conditions that may result in acts of fraud, the company may require an applicant for workers' compensation insurance...
SUBCHAPTER I APPEALS
- Texas Section 2054.354 - Development And Publication Of Certain Information
(a) The company shall develop statistical and other information as necessary to allow the company to distinguish between the company's: (1) writings in the voluntary...
- Texas Section 2054.401 - Appeal Of Certain Actions And Decisions
(a) An act or decision by the company to deny, cancel, or refuse to renew a policy or risk insured under Subchapter H may be...
- Texas Section 2054.402 - Review Of Board Decision By Commissioner
(a) A board decision under Section 2054.401 is subject to review by the commissioner in the manner provided by Chapter 2001, Government Code. (b) The...
SUBCHAPTER J CONTROL OF FRAUD AND OTHER VIOLATIONS
- Texas Section 2054.403 - Appeal Of Commissioner's Decision
(a) A person aggrieved by a decision of the commissioner under Section 2054.402 may appeal the decision to a district court. (b) Judicial review under...
- Texas Section 2054.451 - Identification And Investigation Program For Fraud And Other Violations
(a) The company shall develop and implement a program to identify and investigate acts of fraud and violations of this code relating to workers' compensation...
- Texas Section 2054.452 - Investigations; Coordination
(a) The company may investigate cases of suspected fraud and violations of this code relating to workers' compensation insurance. (b) The company may: (1) coordinate...
- Texas Section 2054.453 - Restitution Payable To Company
Restitution collected under Section 2054.452(b) must be paid to the company. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April...
- Texas Section 2054.454 - Deposit And Use Of Penalties Collected By Division
A penalty collected under Section 2054.452(b): (1) must be deposited in the Texas Department of Insurance operating account; and (2) may be appropriated only to...
- Texas Section 2054.455 - Funding Agreements For Criminal Prosecutions
The company may enter into funding agreements with local prosecutors to prosecute offenses against the company. Added by Acts 2005, 79th Leg., Ch. 727 (H.B....
SUBCHAPTER K ACCIDENT PREVENTION
- Texas Section 2054.456 - Immunity For Certain Actions
The company, the board, and company employees are not liable in a civil action for an action taken in good faith in executing a duty...
- Texas Section 2054.501 - Definition
In this subchapter, "division" means the division of workers' compensation of the department. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2,...
- Texas Section 2054.502 - Requirements For Prevention Of Injuries
The company may make and enforce requirements for the prevention of injuries to an employee of a policyholder or applicant for insurance under this chapter....
- Texas Section 2054.503 - Grounds For Cancellation Or Denial Of Coverage
A failure or refusal by a policyholder or applicant for insurance to comply with a requirement prescribed by the company under Section 2054.502, or a...
- Texas Section 2054.504 - Safety Consultation For Certain Insureds
(a) A policyholder who is insured under Subchapter H shall obtain a safety consultation: (1) if the policyholder: (A) has a Texas experience modifier greater...
- Texas Section 2054.505 - Safety Consultation Procedures
Not later than the 30th day after the effective date of a policy, the policyholder shall obtain a safety consultation required under Section 2054.504 from...
- Texas Section 2054.506 - Safety Consultant Report
A safety consultant acting under this subchapter shall file a written report with the division and the policyholder specifying any hazardous condition or practice identified...
- Texas Section 2054.507 - Accident Prevention Plan
(a) If a safety consultant identifies a hazardous condition or practice, the policyholder and the safety consultant shall develop a specific accident prevention plan that...
- Texas Section 2054.508 - Accident Investigations; Other Monitoring
The division may: (1) investigate an accident that occurs at a work site of a policyholder for whom an accident prevention plan was developed under...
- Texas Section 2054.509 - Follow-up Inspection
(a) Not earlier than the 90th day after or later than the sixth month after the date an accident prevention plan is developed under Section...
- Texas Section 2054.510 - Cancellation Of Coverage By Company; Imposition Of Administrative Penalty
(a) If a policyholder described by Section 2054.509(d) does not elect to cancel coverage as provided by that section: (1) the company may cancel the...
- Texas Section 2054.511 - Continuing Compliance With Subchapter
The procedures established under this subchapter must be followed each year the policyholder meets the criteria established by Section 2054.504(a)(1). Added by Acts 2005, 79th...
- Texas Section 2054.512 - Fees For Services
The division shall: (1) charge a policyholder for the reasonable cost of services provided to the policyholder under Sections 2054.505, 2054.506, 2054.507, 2054.509, and 2054.510(a);...
SUBCHAPTER L PUBLIC INTEREST INFORMATION AND COMPLAINT PROCEDURES
- Texas Section 2054.513 - Enforcement Of Subchapter
The division shall enforce compliance with this subchapter through the administrative violation proceedings under Chapter 415, Labor Code. Added by Acts 2005, 79th Leg., Ch....
- Texas Section 2054.551 - Public Interest Information
(a) The company shall prepare information of public interest describing the functions of the company and the procedures by which complaints are submitted to and...
- Texas Section 2054.552 - Complaints
(a) The company shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the company...
- Texas Section 2054.553 - Complaint Record
(a) The company shall keep information about each written complaint filed with the company. The information must include: (1) the date the complaint is received;...