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) Certificate--A Certificate of authority to self-insure issued by the Commissioners under the Texas Labor Code, §407.042, which entitles an employer to be a 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 the Texas Labor Code, §406.097, as added by House Bill 1089, 74th Legislature, 1995, §1.20, (Texas Workers' Compensation Act, 74th Legislature, Chapter 980, §120, 1995 Vernon's Texas Session Law Service, 4912, 4917).
   2. (2) Claims Contractor--Qualified claims servicing contractor.
   3. (3) Division--The division of self-insurance of the Texas Workers' Compensation Commission.
   4. (4) Excess Insurance--Insurance that an employer purchases to pay claim costs that exceed the employer's retention amount up to a specified limit.
   5. (5) Retention--All payments made 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.
   6. (6) Self-insurer--An employer who has been granted and holds a valid certificate.
   7. (7) 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.