1. (a) General qualifications. The commission will give consideration to and may approve the application of a motor bus company to qualify as a self-insurer if such carrier furnishes a true and accurate statement of its financial condition and other evidence that establishes the ability of such motor bus carrier to satisfy its obligations for bodily injury and property damage liability, without affecting the stability or permanency of the business of such motor bus company. In lieu of other proof, the commission may accept evidence of the qualifications of a motor bus company as a self-insurer under the regulations of the Interstate Commerce Commission.

2. (b) Applicant guidelines. In addition to filing an application as prescribed by the commission, an applicant for self-insurer status covering bodily injury and property damage claims involving motor vehicles 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 its operations and the extent of its request for self-insurance authority. The applicant shall 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 motor vehicles in the event of loss.
   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 motor vehicles to the same extent as the minimum security limits applicable under this title. A self-insurance 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 equivalent arrangements.
   3. (3) The applicant has an adequate ongoing safety program. Applicant shall submit evidence of an adequate ongoing safety program that is in substantial compliance with the safety regulations adopted by the commission.
3. (c) Other securities or agreements. The commission may consider applications for approval of other securities or agreements and may approve any such application if satisfied that the security or agreement offered will afford adequate security for protection of the public.
4. (d) Periodic reports. Annual statements, semi-annual reports, and any other reports required by the commission reflecting the applicant's financial condition and status of its self-insurance program may be filed with the commission during the period of the motor bus carrier's self-insurer status.
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 under the provisions of subsection (f) of this section.
6. (f) Revocation of self-insurer status. The commission may at any time, upon ten days' notice to the self-insurer, require the self-insurer to appear and demonstrate that it continues to have adequate financial resources to pay all claims involving motor vehicles for bodily injury and property damage liability, and that it remains in compliance with the other requirements of this section, and any previous orders issued by the commission. If the applicant fails to so demonstrate, its self-insurer status may be revoked.

Source Note:The provisions of this §5.207 adopted to be effective July 18, 1995, 20 TexReg 4917.