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 in subsection (i)(5) of this section.
2. (b) The Section shall not issue a license authorizing activities under §13.61 of this title (relating to Licensing), or renew an existing license unless the applicant for license or license renewal provides proof of required insurance coverage with an insurance carrier authorized to do business in this state, or provides, on approval of the Section, proof of required insurance coverage issued by a surplus lines insurer that meets the requirements of the Texas Insurance Code, Article 1.14-2, and rules adopted by the Texas Department of Insurance under that article.
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 (i)(5) of this section, and paragraphs (1) - (3) of this subsection, the types and amounts of insurance specified in subsection (i)(5) 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.
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 certificate of insurance filed with the Section must have one of the endorsements specified in subsection (i)(5) of this section attached to the policy, and may not be cancelled without cancellation of the policy to which it is attached.
8. (h) Each endorsement issued and attached to a certificate of insurance noted in subsection (g) of this section requires the insurance carrier, noted as company on the certificate of insurance to give the Section 30 days' written notice before the insurance cancellation. The 30 days' notice commences to run from the date the notice is actually received by the Section.

9. (i) Cancellation of a certificate of insurance becomes effective on the occurrence of any of the following events and not before:

   1. (1) receipt by the Section of written notice stating the insurer's intent to cancel a policy of insurance and giving a minimum of 30 days' notice before the insurance cancellation;
   2. (2) receipt by the Section of an acceptable replacement insurance certificate;
   3. (3) voluntary surrender of a license and the rights and privileges conferred by the license;
   4. (4) receipt by the Section of a statement made by a licensee stating that the licensee is not actively engaging in any operations which require a particular type of insurance and will not engage in those operations unless and until all certificates of required insurance applicable to those operations are filed with the Section; or
   5. (5) the Railroad Commission of Texas' cancellation by order or after hearing.
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10. (j) Notwithstanding the requirement specified in Table 1 of this section that each licensee carry a policy of workers' compensation insurance, the licensee may protect its employees by obtaining accidental 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.
11. (k) 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).

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.