1. (a) Class A licensees shall maintain commercial general liability insurance at all times during a license period:

   1. (1) of at least $300,000 per occurrence (combined for property damage and bodily injury);
   2. (2) of at least $300,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage);
   3. (3) of at least $300,000 aggregate for products and completed operations, and
   4. (4) with a deductible no higher than $1,000.

2. (b) Class B licensees shall maintain commercial liability insurance at all times during a license period:

   1. (1) of at least $100,000 per occurrence (combined for property damage and bodily injury);
   2. (2) of at least $100,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage);
   3. (3) of at least $100,000 aggregate for products and completed operations, and
   4. (4) with a deductible no higher than $500.
3. (c) Insurance must be obtained from an admitted company or an eligible surplus lines carrier, as defined in the Texas Insurance Code, Article 1.14-2, or other insurance companies that are rated by A.M. Best Company as B+ or higher.
4. (d) A license applicant or licensee shall file with the Department a completed certificate of insurance or other evidence satisfactory to the Department when applying for an initial license, and upon request of the Department.

5. (e) Requests to waive the insurance requirements because the license holder does not contract with the public shall:

   1. (1) be submitted in writing to the Department;
   2. (2) contain a detailed explanation of the conditions under which the waiver is requested; and
   3. (3) be accompanied by a confirmation of employment by the current employer when working under the license of another contractor as an employee.
6. (f) A licensee who has received a waiver of insurance shall not perform or offer to perform air conditioning and refrigeration contracting under his or her license with the general public unless exempted under §6(g) of the Act.
7. (g) A licensee or an air conditioning and refrigeration contracting company shall furnish the name of the insurance carrier, policy number, name, address, and telephone number of the insurance agent with whom the licensee or company is insured to any customer who requests it.
8. (h) Failure to maintain insurance or failure to provide a certificate of insurance when requested is grounds for administrative penalties and license sanctions.

Source Note:The provisions of this §75.40 adopted to be effective July 21, 1999, 24 TexReg 5469; amended to be effective March 7, 2001, 26 TexReg 1833; amended to be effective March 27, 2002, 27 TexReg 2225.