SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 407A.001 - Definitions
(a) In this chapter: (1) "Administrator" means an individual, partnership, or corporation engaged by the board of trustees of a group to implement the policies...
- Texas Section 407A.002 - Application Of Chapter; Establishment Of Private Group
(a) An unincorporated association or business trust composed of five or more private employers may establish a workers' compensation self-insurance group under this chapter if...
- Texas Section 407A.003 - Merger Of Groups
(a) Subject to the approval of the commissioner, a group may merge with another group engaged in the same or a similar type of business...
- Texas Section 407A.004 - Group Not Insurer
A group issued a certificate of approval by the commissioner under this chapter is not: (1) an insurer based on that certificate; and (2) subject...
- Texas Section 407A.005 - Certificate Of Approval Required
An association of employers may not act as a workers' compensation self-insurance group unless it has been issued a certificate of approval by the commissioner...
- Texas Section 407A.006 - Service Of Process
(a) Each group shall be deemed to have appointed the commissioner as its attorney to receive service of legal process issued against the group in...
- Texas Section 407A.007 - Hearings
A hearing required under this chapter shall be conducted by the State Office of Administrative Hearings in the manner provided for a contested case under...
- Texas Section 407A.008 - Rules
The commissioner shall adopt rules as necessary to implement this chapter. Added by Acts 2003, 78th Leg., ch. 275, Sec. 1, eff. Sept. 1, 2003.
SUBCHAPTER B APPLICATION REQUIREMENTS FOR CERTIFICATE OF APPROVAL FOR SELF-INSURANCE GROUP
- Texas Section 407A.009 - Certificate Of Authority Required For Certain Administrators And Service Companies
(a) An administrator or service company under this chapter that performs the acts of an administrator as defined in Chapter 4151, Insurance Code, must hold...
- Texas Section 407A.051 - Application For Initial Certificate Of Approval; Approval Requirements
(a) An association of employers that proposes to organize as a workers' compensation self-insurance group shall file with the department an application for a certificate...
- Texas Section 407A.052 - Issuance Of Certificate Of Approval; Refusal
(a) The commissioner shall issue a certificate of approval to a proposed group on finding that the group has met the requirements of this subchapter....
- Texas Section 407A.053 - Financial Requirements
(a) To obtain a certificate of approval, each group shall comply with the financial requirements adopted under this section. (b) The combined net worth of...
- Texas Section 407A.054 - Excess Insurance Requirements
(a) To obtain an initial certificate of approval and to be eligible to renew its certificate of approval, each group must comply with the excess...
- Texas Section 407A.055 - Premium Requirements
Each group must have an estimated premium subject to experience modifier of at least $250,000 during the group's first year of operation. Thereafter, the annual...
- Texas Section 407A.056 - Indemnity Agreement Requirements
(a) An indemnity agreement filed under Section 407A.051 must jointly and severally bind the group and each employer who is a member of the group...
SUBCHAPTER C TERMINATION OF CERTIFICATE OF APPROVAL
- Texas Section 407A.057 - Additional Performance Bond Requirements
(a) In addition to the requirements under Section 407A.051, the commissioner may require a service company providing claim services to furnish a performance bond of...
SUBCHAPTER D BOARD OF TRUSTEES
- Texas Section 407A.101 - Certificate Of Approval; Termination
(a) A certificate of approval remains in effect until terminated at the request of the group or revoked by the commissioner. (b) The commissioner may...
- Texas Section 407A.151 - Board Membership
(a) Each group shall be operated by a board of trustees composed of at least five persons whom the members of the group elect for...
- Texas Section 407A.152 - Board General Powers And Duties
The board of trustees shall: (1) maintain minutes of its meetings and make the minutes available to the commissioner; (2) designate an administrator and delineate...
- Texas Section 407A.153 - Prohibited Activities
The board of trustees may not: (1) extend credit to individual members for payment of a premium, except under payment plans approved by the commissioner;...
SUBCHAPTER E GROUP MEMBERSHIP; TERMINATION; LIABILITY
- Texas Section 407A.154 - Group Funds
The board of trustees shall maintain responsibility for all money collected or disbursed from the group. Added by Acts 2003, 78th Leg., ch. 275, Sec....
SUBCHAPTER F EXAMINATIONS, FINANCIAL STATEMENTS, AND OTHER REPORTS
- Texas Section 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...
- Texas Section 407A.251 - Financial Statement
(a) Each group shall submit to the commissioner financial statements audited by an independent certified public accountant on or before the last day of the...
SUBCHAPTER G TAXES, FEES, AND ASSESSMENTS
- Texas Section 407A.252 - Examination
(a) The commissioner shall examine the financial condition of each group to determine the group's ability to meet the group's obligations under this subtitle. An...
- Texas Section 407A.301 - Maintenance Tax For Division And Research Functions Of Department
(a) Each group shall pay a self-insurance group maintenance tax under this section for: (1) the administration of the division of workers' compensation of the...
- Texas Section 407A.302 - Maintenance Tax For Department
(a) Subject to Subsection (b), each group shall pay the maintenance tax imposed under Chapter 255, Insurance Code, for the administrative costs incurred by the...
- Texas Section 407A.303 - Collection And Payment Of Taxes
(a) The group shall remit the taxes for deposit in the Texas Department of Insurance operating account to the credit of the division. (b) A...
SUBCHAPTER H RATES; REFUNDS; PREMIUM PAYMENTS; RESERVES; DEFICITS
- Texas Section 407A.304 - Premium Tax
(a) Each group shall pay to the comptroller a premium tax on gross premiums for the group's retention. The premium tax assessed under this subsection...
- Texas Section 407A.351 - Rates
(a) Except as provided by Subsection (b), each group shall use the uniform classification system, experience rating plan, and rate relativities of the department. (b)...
- Texas Section 407A.352 - Audits
Each member of a group shall be audited annually by the administrator or by an auditor acceptable to the commissioner to verify proper classifications, experience...
- Texas Section 407A.353 - Refunds
(a) The board of trustees may declare refundable any money for a fund year in excess of the amount necessary to fund all obligations. (b)...
- Texas Section 407A.354 - Premium Payment Plan; Reserves
(a) Until the assets of a group reach a level sufficient to cover the group's liabilities, each group shall establish to the satisfaction of the...
SUBCHAPTER I DISCIPLINARY ACTIONS; PENALTIES
- Texas Section 407A.355 - Deficits; Insolvencies
(a) For purposes of this section, "insolvent" means: (1) the inability of a group to pay the group's outstanding lawful obligations as they mature in...
- Texas Section 407A.401 - Prohibited Solicitation
In connection with the solicitation of membership in a group, a person may not make an untrue statement of a material fact, or omit to...
- Texas Section 407A.402 - Fines
After notice and an opportunity for a hearing, the commissioner may impose a fine on any person or group found to be in violation of...
- Texas Section 407A.403 - Cease And Desist Orders
(a) After notice and an opportunity for a hearing, the commissioner may issue an order requiring a person or group to cease and desist from...
SUBCHAPTER J TEXAS SELF-INSURANCE GROUP GUARANTY FUND
- Texas Section 407A.404 - Revocation Of Certificate Of Approval
(a) After notice and an opportunity for a hearing, the commissioner may revoke a group's certificate of approval if the group: (1) is found to...
- Texas Section 407A.451 - Definitions
In this subchapter: (1) "Board" means the board of directors of the guaranty fund. (2) "Guaranty fund" means the Texas self-insurance group guaranty fund. (3)...
- Texas Section 407A.452 - Guaranty Fund
(a) The Texas self-insurance group guaranty fund is a nonprofit association established to provide for the payment of workers' compensation insurance benefits for injured employees...
- Texas Section 407A.453 - Board Of Directors
(a) The guaranty fund is managed by a board of directors. (b) The board is composed of the following voting members: (1) three members elected...
- Texas Section 407A.454 - Immunity
A board member or a member of the staff of the board is not liable in a civil action for an act performed in good...
- Texas Section 407A.455 - Board General Powers And Duties
(a) The board shall: (1) create and maintain a trust fund for payment of the workers' compensation liabilities of an insolvent group; (2) hire staff...
- Texas Section 407A.456 - Plan Of Operation
(a) The board shall adopt a plan of operation governing the board's activities and the operation of the guaranty fund and the trust fund. (b)...
- Texas Section 407A.457 - Trust Fund; Schedule
(a) Each group shall contribute an amount, based on the total amount of income benefit payments made in this state for the preceding reported calendar...
- Texas Section 407A.458 - Effect Of Insolvency Of Group
(a) On determining that a group has become insolvent, the commissioner shall secure release of the surety bond or security deposit required under Section 407A.053...
- Texas Section 407A.459 - Collection Of Assessments From Group Members; Continuation Of Joint And Several Liability
(a) Each member of an insolvent group shall pay the amount of its assessment under this chapter to the commissioner not later than the 30th...
- Texas Section 407A.460 - Payment Of Benefits Through Guaranty Fund
(a) If the commissioner determines that the payment of benefits and claims administration shall be made through the guaranty fund, the guaranty fund assumes the...
- Texas Section 407A.461 - Possession Of Security By Guaranty Fund
On the assumption of obligations on behalf of an insolvent group by the guaranty fund under the commissioner's determination, the guaranty fund is entitled to...
- Texas Section 407A.462 - Release Of Claim Information To Guaranty Fund
If the guaranty fund has assumed compensation obligations on behalf of an insolvent group, information on a workers' compensation claim may be released to the...
- Texas Section 407A.463 - Guaranty Fund As Party In Interest
(a) The guaranty fund is a party in interest in a proceeding involving a workers' compensation claim against an insolvent group whose compensation obligations have...
- Texas Section 407A.464 - Preferences
(a) Benefit payments made by the guaranty fund under this subchapter are entitled to the same preference over other debts of the insolvent group as...
- Texas Section 407A.465 - Special Fund
Monies advanced by the association under this chapter do not become assets of the insolvent group but constitute a special fund advanced to the commissioner,...