If a self-insurer becomes an impaired employer, the director shall protect the employees of such employer by promptly:

1. (1) calling the security deposit and placing the funds in the impaired employer's account in the trust fund;
2. (2) notifying the association to assume the liabilities of the impaired employer and, pursuant to Texas Civil Statutes, Article 8308-3.70(c), to begin paying benefits out of the impaired employer's account with the trust fund; and
3. (3) estimating the amount of any additional funds needed to supplement the security deposit and available assets of the impaired employer and advise the association of the amount the association will need to assess each self-insurer to cover the estimated liabilities once the impaired employer's security account has been expended.

Source Note:The provisions of this §114.14 adopted to be effective January 1, 1993, 17 TexReg 7896.