(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.
The provisions of this §114.16 adopted to be effective January 6, 2019, 44 TexReg 99.