1. (a) CNG licensees or applicants for license shall comply with the minimum amounts of insurance specified in Table 1 of this section.
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2. (b) Before LP-Gas Operations grants or renews a license, the applicant shall submit either:

   1. (1) An insurance Acord™ form; or any other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier containing all required information. The forms must be issued by an insurance company authorized or accepted by the Texas Department of Insurance; or
   2. (2) properly completed documents demonstrating the applicant's compliance with the self-insurance requirements in §13.63 of this title (relating to Qualification as Self-Insured).
3. (c) A licensee shall not perform any licensed activity under §13.61 of this title (relating to Licensing) unless insurance coverage required by this section is in effect.

4. (d) Except as provided in the column relating to Statements in Lieu of Required Insurance Filing in Table 1, subsection (a) of this section, and paragraphs (1) - (5) of this subsection, the types and amounts of insurance specified in subsection (a) of this section are required while engaging in any of the activities set forth in this section or any activity incidental thereto.

   1. (1) A Category 3 licensee or applicant for license or ultimate consumer that does not operate or contemplate the operation of a CNG transport and does not transport or contemplate the delivery of CNG cylinders by vehicle in any manner may file a CNG Form 1997B in lieu of filing motor vehicle bodily injury and property damage liability insurance form. The licensee or applicant for a license must file the required insurance form with LP-Gas Operations before operating a motor vehicle equipped with a CNG cargo container or transporting CNG by vehicle in any manner.
   2. (2) A licensee or applicant for a license that does not engage in or contemplate engaging in any operations which would be covered by general liability insurance may file a CNG Form 1998B in lieu of filing a general liability insurance form. The licensee or applicant for a license must file the required insurance form with LP-Gas Operations before engaging in any operations that require general liability insurance.
   3. (3) A licensee or applicant for license that does not employ or contemplate the hiring of an employee or employees to be engaged in CNG related activities in Texas may file a CNG Form 1996B in lieu of filing a workers' compensation insurance form, including employer's liability insurance or alternative accident and health insurance coverage. The licensee or applicant for a license must file the required insurance form with LP-Gas Operations before hiring any person as an employee engaged in CNG related work.
   4. (4) A licensee or applicant for a license that does not engage in or contemplate engaging in any CNG operations that would be covered by completed operations or products liability insurance, or both, may file CNG Form 1998B in lieu of a completed operations and/or products liability insurance form. The licensee or applicant for a license shall file the required insurance form with LP-Gas Operations before engaging in any operations that require completed operations and/or products liability insurance.
   5. (5) A licensee may protect its employees by obtaining accident and health insurance coverage from an insurance company authorized to write such policies in this state as an alternative to workers' compensation coverage. The alternative coverage shall be in the amounts specified in Table 1 of this section.
5. (e) As evidence that required insurance has been secured and is in force, insurance forms which are approved by the Texas Department of Insurance shall be filed with LP-Gas Operations before licensing, license renewal, and during the entire period that the license is in effect. Any document filed with LP-Gas Operations in a timely manner which is not completed in accordance with the instructions indicated on the insurance forms supplied by LP-Gas Operations, but which complies with the substantive requirements of this section and with the rules adopted under this section, may be considered by LP-Gas Operations to be evidence that required insurance has been secured and is in force for a temporary period not to exceed 45 days. During this temporary period, a licensee shall file with LP-Gas Operations an amended certificate of insurance which complies with all procedural and substantive requirements of this section and this chapter.
6. (f) All certificates filed under this section shall be continuous in duration and shall remain on file with LP-Gas Operations during the entire period that the license is in effect.
7. (g) Each licensee shall file CNG Form 1999 or other written notice with LP-Gas Operations at least 30 calendar days before the cancellation of any insurance coverage. The 30-day period commences on the date the notice is actually received by LP-Gas Operations.
8. (h) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements relating to general liability and/or motor vehicle liability insurance or workers' compensation coverage by filing CNG Form 1995 with LP-Gas Operations as evidence of self-insurance, if permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §116.036.
9. (i) Each licensee shall promptly notify LP-Gas Operations of any change in insurance coverage or insurance carrier by filing a properly completed revised Acord™ form; other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier containing all required information; or documents demonstrating the applicant's compliance with the self-insurance requirements set forth in §13.63 of this title (relating to Qualification as Self-Insured). Failure to promptly notify LP-Gas Operations of a change in the status of insurance coverage or insurance carrier may result in an enforcement action and an administrative penalty.

Source Note:The provisions of this §13.62 adopted to be effective November 15, 1990, 15 TexReg 5941; amended to be effective October 15, 1993, 18 TexReg 6457; amended to be effective November 29, 1993, 18 TexReg 8457; amended to be effective June 5, 2006, 31 TexReg 4604; amended to be effective November 12, 2007, 32 TexReg 8127; amended to be effective December 24, 2012, 37 TexReg 9917.