1. (a) Pursuant to the Texas Natural Resources Code, Chapter 116, the Commission has adopted the minimum amounts of insurance for LNG licensees authorized by the State of Texas specified in Table 1 of this section.
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2. (b) A licensee or applicant for license shall file a valid certificate of insurance as proof of insurance before the Commission grants or renews a license.

   1. (1) Certificate of insurance shall be valid only when issued by an insurance carrier authorized to do business in Texas, or 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.
   2. (2) Certificates of insurance filed with the Commission shall have one of the endorsements specified in Table 1 of subsection (a) of this section attached to the policy. Endorsements may not be cancelled without cancellation of the attached policy.
   3. (3) Certificates of insurance shall be continuous in duration and shall remain on file with the Commission during the entire period that the license is in effect.
   4. (4) Documentation other than a certificate of insurance may be accepted by the Commission as evidence of required insurance provided that the documentation contains the same information as required on a certificate of insurance. The alternative documentation may be accepted for a period not to exceed 45 days. During the temporary period, a licensee shall file with the Commission an amended certificate of insurance which complies with the requirements of this section.

   5. (5) Cancellation of a certificate of insurance becomes effective if:

      1. (A) the Commission receives written notice stating the insurer's intent to cancel a policy of insurance and giving a minimum of 30 calendar days' notice before such cancellation;
      2. (B) the Commission receives an acceptable replacement certificate of insurance;
      3. (C) the licensee voluntarily surrenders a license and the rights and privileges conferred by the license;
      4. (D) the Commission receives a statement made by the 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 insurance required for those operations are filed with the Commission; or
      5. (E) the Railroad Commission of Texas issues an order following a hearing related to a certificate of insurance.
3. (c) Each endorsement issued and attached to a certificate of insurance shall require the insurance carrier, noted as "company" on the certificate of insurance, to give the Commission 30 days' written notice before the insurance cancellation. The 30-day notice commences from the date the Commission receives the notice.
4. (d) A licensee or applicant for a license that employs or contemplates employing any employees in LNG activities shall file LNG Form 2996A with the Commission. A licensee or applicant for a license that does not employ or contemplate employing any employees in LNG activities shall file LNG Form 2996B in lieu of a certificate of workers' compensation, including employers' liability insurance, or alternative accident and health insurance. The licensee or applicant for a license shall file the required insurance certificate and forms with the Commission before hiring any employee.
5. (e) A Category 25 or 35 licensee or applicant for a license or ultimate consumer that operates or contemplates operating a motor vehicle equipped with an LNG transport container shall file LNG Form 2997A with the Commission. A Category 25 or 35 licensee or applicant for a license or ultimate consumer that does not operate or contemplate operating a motor vehicle equipped with an LNG transport container or does not transport or contemplate transporting LNG by vehicle in any manner shall file LNG Form 2997B in lieu of a certificate of motor vehicle bodily injury and property damage insurance if this certificate is not otherwise required. The licensee or applicant for a license shall file the required insurance certificate and forms with the Commission before operating a motor vehicle equipped with an LNG cargo container or transporting LNG by vehicle in any manner.
6. (f) A Category 15 licensee or applicant for a license that engages in or contemplates engaging in any LNG operations that would be covered by completed operations and product liability insurance shall file LNG Form 2998A with the Commission. A Category 15 licensee or applicant for a license that does not engage in or contemplate engaging in any LNG operations that would be covered by completed operations and product liability insurance shall file LNG Form 2998B in lieu of a certificate of completed operations and product liability insurance. The licensee or applicant for a license shall file the required insurance certificate and forms with the Commission before engaging in any operations that require completed operations and product liability insurance.
7. (g) A licensee or applicant for a license that engages in or contemplates engaging in any operations that would be covered by general liability insurance shall file LNG Form 2998A with the Commission. A licensee or applicant for a license that does not engage in or contemplate engaging in any operations that would be covered by general liability insurance shall file LNG Form 2998B in lieu of a certificate of general liability insurance. The licensee or applicant for a license shall file the required insurance certificate and forms with the Commission before engaging in any operations that require general liability insurance.
8. (h) Notwithstanding the requirements specified in Table 1 of subsection (a) of this section that each licensee carry a policy of workers' compensation insurance, the licensee may protect its employees by obtaining accident and health insurance coverage from an insurance company authorized to write such policies in Texas as an alternative to workers' compensation coverage. The alternative coverage shall be in the amounts specified in Table 1 of subsection (a) of this section.

Source Note:The provisions of this §14.2031 adopted to be effective May 26, 2003, 28 TexReg 4100.