1. (a) General qualifications. The commission will give consideration to and may approve the application of a compressed natural gas (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 the commission 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 the division's licensing requirements for worker's compensation insurance, including employer's liability coverage.

2. (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 the commission to determine whether:

   1. (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. (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. (3) evidence of motor vehicle self-insurability accepted by the Transportation Division of the Railroad Commission of Texas may be submitted to the division for consideration in determining self-insurability.
3. (c) Other securities or agreements. The commission 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.
4. (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 the commission during the period of its self-insurer status by March 10 and September 10 of each year.
5. (e) Duration of self-insurer status. The commission may approve the applicant as a self-insurer for any specific time period, or for an indefinite period until revoked by the commission.
6. (f) Revocation of a self-insurer status. The commission 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.
7. (g) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements for workers' compensation coverage of §13.62 of this title (relating to Insurance Requirements) by submitting evidence of self-insurance permitted by the state Workers' Compensation Act, Texas Civil Statutes, Article 8308-1.01, et seq.; Texas Civil Statutes, Articles 8309b, 8309d, 8309g, 8309g-1, and 8309h; and the Texas Natural Resources Code, §116.036, by submitting a CNG Form 1995 to the commission.
8. (h) 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 in §13.62 of this title (relating to Insurance Requirements) by submitting a CNG Form 1995 as evidence of self-insurance coverage if permitted by the state Workers' Compensation Act, Texas Civil Statutes, Article 8308-1.01, et seq.; Texas Civil Statutes, Article 8309b, 8309d, 8309g, 8309g-1, and 8309h; and the Texas Natural Resources Code, §116.036.

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.