1. (a) A Class A license requires commercial general liability insurance of at least:

   1. (1) $300,000 per occurrence (combined for property damage and bodily injury);
   2. (2) $300,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and
   3. (3) $300,000 aggregate for products and completed operations; and
   4. (4) in the event claims occur which reduce the required coverage to a level of $250,000 or less, the licensee shall reinstate the coverage to the original $300,000 amount or greater.

2. (b) A Class B license requires commercial general liability insurance of at least:

   1. (1) $100,000 per occurrence (combined for property damage and bodily injury);
   2. (2) $100,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and
   3. (3) $100,000 aggregate for products and completed operations; and
   4. (4) in the event claims occur which reduce the required coverage to a level of $75,000 or less, the licensee shall reinstate the coverage to the original $100,000 amount or greater.
3. (c) Insurance must be obtained from an admitted company or an eligible surplus lines carrier, as defined in Texas Insurance Code, Article 1.14-2.
4. (d) The certificate of insurance shall list all deductibles. Deductibles shall be limited to $500 for Class B licenses and to $1,000 for Class A licenses. Any contractor whose business affiliation is self-insured must provide an affidavit of responsibility and a certified financial statement.
5. (e) The certificate of insurance shall list all exclusions other than standard exclusions by admitted companies or shall state that there are none. Exclusions for subsidence not caused by natural occurrences are not acceptable.

6. (f) A license applicant or holder shall furnish to the department a certificate of insurance. The certificate shall:

   1. (1) contain the license holder's name, business name, and address as it appears on the license;
   2. (2) be submitted on the form furnished by the department and shall have all blanks filled;
   3. (3) reflect all assumed names used by the license holder and registered with this agency;
   4. (4) not be a binder or interim certificate of less than 60 days;
   5. (5) have an expiration date; and
   6. (6) also be issued to each municipality where air conditioning and refrigeration contracting is performed.
7. (g) Insurance coverage shall be maintained at all times and a new certificate shall be furnished each year. License holders whose proof of insurance expires or is canceled shall be notified by the department that they have an insurance violation. Failure to maintain coverage or to furnish the required proof shall be grounds for revocation of the license in accordance with Texas Civil Statutes, Article 9100.

8. (h) All 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 on which the waiver is being requested; and
   3. (3) contain confirmation of employment by employer when applicable.

Source Note:The provisions of this §75.40 adopted to be effective January 28, 1993, 18 TexReg 301; amended to be effective January 7, 1994, 18 TexReg 9929; amended to be effective August 1, 1994, 19 TexReg 5637; amended to be effective January 10, 1997, 22 TexReg 737.