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) Before the License and Permit Section of the Gas Services Division (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 §14.2034 of this title (relating to Self-Insurance Requirements).
   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.
3. (c) Each licensee shall give the Section written notice 30 calendar days before the cancellation. The 30-day period commences on the date the notice is actually received by the Section.
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.
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 §14.2034 of this title (relating to Self-Insurance Requirements). 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 §14.2031 adopted to be effective May 26, 2003, 28 TexReg 4100; amended to be effective November 12, 2007, 32 TexReg 8128.