1. (a) The following words and terms are defined in the Texas Labor Code §407.001, and are so used in this chapter:

   1. (1) Association;
   2. (2) Director;
   3. (3) Impaired employer;
   4. (4) Incurred liabilities for compensation; and
   5. (5) Qualified claims servicing contractor.

2. (b) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

   1. (1) Applicant--an employer that applies for an initial certificate of authority to self-insure or, once initially certified, any subsequent certificate of authority to self-insure.
   2. (2) Certificate--A certificate of authority to self-insure issued by the commission under Texas Labor Code §407.042, which entitles an employer to be a certified self-insurer and is valid only for the persons, firms, or corporations named on the certificate. For a certificate of authority to self-insure delivered, issued for delivery, or renewed on or after January 1, 1996, a sole proprietor, partner, or corporate executive officer of a business may be specifically excluded from coverage pursuant to Texas Labor Code §406.097.
   3. (3) Certified self-insurer--A private employer that has been granted a certificate of authority to self-insure for payment of compensation, either currently or for a prior period.
   4. (4) Claims Contractor--A qualified claims servicing contractor.
   5. (5) Division--The division of self-insurance regulation of the Texas Workers' Compensation Commission.
   6. (6) Excess Insurance--Insurance that an employer purchases to pay claim costs that exceed the employer's retention amount up to a specified limit.
   7. (7) Retention--All payments that must be paid by a certified self-insurer before an excess insurance policy will respond to a loss for claims filed under the Workers' Compensation Act including: indemnity benefits, medical payments, death benefits and all other related claims expenses not otherwise covered by insurance.
   8. (8) Trust Fund--The Texas certified self-insurer guaranty trust fund created by the fee assessed by the Association for emergency payment of the compensation liabilities of an impaired employer.

Source Note:The provisions of this §114.2 adopted to be effective January 1, 1993, 17 TexReg 7896; amended to be effective November 6, 1995, 20 TexReg 8612; amended to be effective May 9, 2004, 29 TexReg 4186.