1. (a) This rule applies to employers whose employees are not exempt from coverage under the Workers' Compensation Act (the Act), and to insurance carriers. It does not apply to self-insured political subdivisions, employers whose only employees are exempt from coverage under the Act, and certified self-insurers.

2. (b) Employers are required to provide Form TWCC-5 to the commission by certified mail or personal delivery as follows:

   1. (1) if the employer elects not to be covered by workers' compensation insurance, the earlier of the following:

      1. (A) 30 days after receiving a commission request for the filing of a TWCC-5 and annually thereafter on the anniversary date of the original filing;
      2. (B) 30 days after hiring an employee who is subject to coverage under the Act, and annually thereafter on the anniversary date of the original filing;
   2. (2) if the employer cancels coverage without purchasing a new policy or becoming a certified self-insurer, within 10 days after notifying the insurance carrier and annually thereafter on the anniversary of the cancellation date of the workers' compensation policy; or
   3. (3) if the employer is principally located outside of Texas, within 10 days after receiving a written request from the commission for information about the coverage status of its Texas operations.

3. (c) When an employer elects to cancel coverage, the effective date of that cancellation shall be the later of:

   1. (1) 30 days after filing the TWCC-5 with the commission; or
   2. (2) the cancellation date of the policy.
4. (d) The insurance coverage shall be extended until the effective date of withdrawal as established in subsection (c) of this section, and the employer is obligated to pay premiums which accrue during this period.

5. (e) Insurance carriers are required to provide Form TWCC-20 to the commission by certified mail or personal delivery:

   1. (1) within 10 days after the effective date of the policy or endorsement and annually thereafter no later than 10 days after the anniversary date of the policy and, if the employer has multiple business locations, the Form TWCC-20-1;
   2. (2) 30 days prior to the date on which the cancellation or nonrenewal becomes effective if the insurance carrier cancels, or does not renew, an employer's workers' compensation policy on the anniversary date; or
   3. (3) 10 days prior to the date on which the cancellation becomes effective if the insurance carrier cancels an employer's workers' compensation policy in accordance with Article 8308-3.28(c).

6. (f) Insurance coverage remains in effect until the end of the policy period, the beginning date of a new policy, or until the commission and the employer receive the TWCC-20 and the later of:

   1. (1) the date 30 days after receipt of the notice required by Article 8308-3.28(b);
   2. (2) the date 10 days after receipt of the notice required by Article 8308-3.28(c); or
   3. (3) the effective date of the cancellation if later than the dates in paragraph (1) or (2) of this subsection.
7. (g) In no event shall this rule serve to extend coverage beyond the end of the policy period.
8. (h) An insurance carrier may elect to have a servicing agent process and file all coverage information, but the insurance carrier remains responsible for meeting all filing requirements of this rule.
9. (i) Failure to provide notice as required by this rule is an administrative violation and may subject the employer and/or the insurance carrier to administrative penalties.

Source Note:The provisions of this §110.1 adopted to be effective September 15, 1993, 18 TexReg 5884.