1. (a) Pursuant to the Texas Natural Resources Code, Chapter 116, the Railroad Commission of Texas has adopted the minimum amounts of insurance required of those persons or businesses licensed by the License and Permit Section of the Gas Services Division (the Section) to do business in Texas. The minimum amounts of insurance and other insurance requirements are specified in Table 1 of this section.
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2. (b) Before the Section grants or renews a license, the applicant shall submit either:

   1. (1) a valid certificate of insurance; an insurance Acord^TM form; or any other form prepared and signed by the insurance carrier that contains all the information required by the certificate of insurance. The certificates or 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 Insurance Certificates in Table 1 in 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 a certificate of motor vehicle bodily injury and property damage liability insurance. The licensee or applicant for a license must file the required insurance certificate with the Section 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 for a period of time may file a CNG Form 1998B in lieu of filing a certificate of general liability insurance. The licensee or applicant for a license must file the required insurance certificate with the Section 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 certificate or workers' compensation insurance, including employer's liability insurance. The licensee or applicant for a license must file the required insurance certificate with the Section 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 certificate of completed operations and/or products liability insurance. The licensee or applicant for a license shall file the required insurance certificate with the Section 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, certificates of insurance which are approved by the Section shall be filed with the Section before licensing, license renewal, and during the entire period that the license is in effect. Any document filed with the Section in a timely manner which is not completed in accordance with the instructions indicated on the insurance certificate forms supplied by the Section, but which complies with the substantive requirements of this section and with the rules adopted under this section, may be considered by the Section 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 the Section an amended certificate of insurance which complies with all procedural and substantive requirements of this section and the rules adopted hereunder.
6. (f) All certificates filed under this section shall be continuous in duration.
7. (g) Each licensee shall give the Section written notice 30 calendar days before the cancellation of any insurance coverage. The 30-day period commences on the date the notice is actually received by the Section.
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 submitting evidence of self-insurance that complies with the requirements of §13.63 of this title (relating to Qualification as Self-Insured).
9. (i) Each licensee shall promptly notify the Commission of any change in insurance coverage or insurance carrier by filing a properly completed revised certificate of insurance; insurance Acord^TM form; other form prepared and signed by the insurance carrier that contains all the information required by the certificate of insurance; 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 the Commission 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.