(a) The upper limit of liability for a contract or policy of excess insurance shall be in the amount required by the commissioner. The minimum amount the commissioner may require is $5 million per occurrence.
(b) A contract or policy of excess insurance must be issued by an insurance company authorized by the State of Texas to transact such business and shall include the following provisions:
(1) cancellation requires notice to the division in the form and manner prescribed by the commissioner at least 60 days before termination;
(2) non-renewal requires notice to the division, in the form and manner prescribed by the commissioner at least 60 days before the end of the policy;
(3) the Association must be named as an additional insured on the excess policy and may assume the rights and responsibilities of the certified self-insurer under the policy when the certified self-insurer is declared to be impaired; and
(4) all of the following benefits to which the injured employee is entitled under the Texas Workers' Compensation Act must be applied toward reaching the retention amount:
(A) payments made by the certified self-insured employer;
(B) payments due and owing by the certified self-insured employer;
(C) payments made on behalf of the certified self-insured employer by any form of security as required by the Act or division rules; and
(D) payments made by the Association pursuant to Texas Labor Code §407.121 and §407.127.
(c) The commissioner will not issue a certificate before the excess insurance carrier has submitted to the division evidence of a qualifying excess insurance policy that meets the requirements of this section.
(d) The certified self-insurer who elects to cancel or chooses not to renew a policy of excess insurance shall notify the division 60 days prior to the cancellation or termination in the form and manner prescribed by the commissioner.
The provisions of this §114.5 adopted to be effective January 1, 1993, 17 TexReg 7896; amended to be effective March 13, 2000, 25 TexReg 2088; amended to be effective May 9, 2004, 29 TexReg 4186; amended to be effective January 6, 2019, 44 TexReg 99.