Section 114.16 - Withdrawal from Self-Insurance(a) Insuring agreements under Labor Code § 407.045(a-1) filed for the commissioner's approval as a part of an adequate program to withdraw from self-insurance must meet the following criteria: (1) The form of an insuring agreement must be that of a standard workers' compensation policy providing statutory limits with an approved company specific endorsement under Texas Insurance Code § 2052.002(b) providing coverage for all open, reopened, and incurred but not reported claims against the self-insured employer for the entire period of time it operated as a certified self-insurer.(2) The insurance policy must be issued by an insurance company as defined by Texas Labor Code § 401.011(28) that has not been determined to be in hazardous financial condition by the commissioner of insurance pursuant to Chapter 8 of this title (relating to Hazardous Condition).(3) The policy period must be retrospective providing coverage for the entire period of time the employer operated as a certified self-insurer.(4) The policy as endorsed must be noncancelable by either the insurance company or the certified self-insured employer for any reason.(5) The insurance company issuing an insuring agreement that covers all the workers' compensation liabilities of a certified self-insurer becomes the workers' compensation insurance carrier for the liabilities covered for all purposes of the Texas Workers' Compensation Act and division rules.(b) Withdrawals from self-insurance must comply with all applicable statutes and all applicable rules promulgated by the commissioner of insurance and the commissioner of workers' compensation.(c) Notwithstanding the security deposit requirements in § 114.4 of this title (relating to Security Deposit Requirements), the commissioner may review and approve modifications to previously approved withdrawals from self-insurance, including modifications to security deposit requirements.(d) The commissioner retains discretionary authority to approve, disapprove, or require modification of any proposed program for withdrawal from self-insurance presented by a certified self-insurer.28 Tex. Admin. Code § 114.16
Adopted by Texas Register, Volume 44, Number 01, January 4, 2019, TexReg 0099, eff. 1/6/2019