|(a) General qualifications. LP-Gas Operations may approve
the application of a CNG licensee to qualify as a self-insurer if
such licensee furnishes a true and accurate statement of its financial
condition and other evidence which establishes to the satisfaction
of LP-Gas Operations the ability of such licensee to satisfy its obligations
for the minimum insurance requirements specified in §13.62 of
this title (relating to Insurance Requirements). This section shall
not apply to LP-Gas Operations' licensing requirements for worker's
compensation insurance, including employer's liability coverage.
(b) Applicant guidelines. In addition to filing a CNG
Form 1027, Application for Qualification as Self-Insurer, an applicant
applying for self-insurer status covering general liability, including
premises and operations coverage, shall submit materials that will
allow LP-Gas Operations to determine whether:
(1) the net worth of the applicant is adequate in relationship
to the size of operations and the extent of its request for self-insurance
authority. The applicant should demonstrate that it will maintain
a net worth sufficient to ensure that it will be able to meet its
statutory obligations to the public to pay all claims relating to
general liability, including premises and operations coverage in the
event of a claim;
(2) the applicant has a sound self-insurance program.
The applicant shall demonstrate that it has established, and will
maintain an insurance program that will protect the public against
all claims involving CNG activities to the same extent as the minimum
limits applicable pursuant to §13.61(a)(6) and (7) of this title
(relating to Licensing). Such a program may include, but not be limited
to, one or more of the following: reserves; sinking funds; third party
financial guarantees; parent company or affiliate sureties; excess
insurance coverage; or other similar arrangements;
(3) the applicant presents evidence that it meets the
requirements for motor carrier self-insurance promulgated by the Texas
Department of Transportation.
(c) Other securities or agreements. LP-Gas Operations
may consider applications for approval of other securities or agreements,
or may require any other document(s) which may be necessary to ensure
such application satisfies that the security or agreement offered
will afford adequate security for protection of the public.
(d) Periodic reports. Semiannual reports and annual
statements reflecting the applicant's financial condition and status
of its self-insurance program shall be filed with LP-Gas Operations
during the period of its self-insurer status by March 10 and September
10 of each year.
(e) Duration of self-insurer status. LP-Gas Operations
may approve the applicant as a self-insurer for any specific time
period, or for an indefinite period until revoked by LP-Gas Operations.
(f) Revocation of a self-insurer status. LP-Gas Operations
may at any time, upon 10 days notice to the applicant, require the
applicant to appear and demonstrate that it continues to have adequate
financial resources to pay all general liability, including premises
and operations coverage claims, and that it remains in compliance
with the other requirements of this section. If the applicant fails
to so demonstrate, its self-insurer status shall be revoked and it
may be ineligible for self-insurance in the future.
(g) A state agency or institution, county, municipality,
school district, or other governmental subdivision may meet the requirements
for general liability and/or motor vehicle liability insurance or
workers' compensation coverage of §13.62 of this title if permitted
by the Texas Workers' Compensation Act, Texas Labor Code, Title 5,
Subtitle A; and the Texas Natural Resources Code, §116.036, by
submitting a CNG Form 1995 to LP-Gas Operations.
|Source Note: The provisions of this §13.63 adopted to be effective November 15, 1990, 15 TexReg 5941; amended to be effective November 29, 1993, 18 TexReg 8457; amended to be effective June 5, 2006, 31 TexReg 4604; amended to be effective December 24, 2012, 37 TexReg 9917