1. (a) Initial licensing.

   1. (1) An insurance company seeking to obtain its initial license to write workers' compensation insurance in Texas shall file with the division a plan describing the accident prevention services that the company will provide. The plan shall describe how the company will meet all requirements listed in §166.4(c) of this title (relating to Required Accident Prevention Services).

      1. (A) The division shall evaluate the plan's compliance with the requirements listed in §166.4(c) of this title (relating to Required Accident Prevention Services) and resolve any discrepancies with the insurance company. If the insurance company disagrees with the evaluation rendered by the division, the insurance company may request a hearing as provided by Chapter 145 of this title (relating to Hearings under the Administrative Procedure and Texas Register Act).
      2. (B) Upon completion of the evaluation and successful resolution of any disputes, the division shall issue a letter of approval to the insurance company and the Texas Department of Insurance.
      3. (C) The insurance company receiving the approval of the plan shall notify the division, in writing, within 30 days of the start date of the first written policy having exposures in Texas.
   2. (2) The insurance company's accident prevention services will be inspected initially by the division no sooner than six months nor longer than one year after the effective date of the first policy having Texas exposures.
   3. (3) An insurance company seeking license to act exclusively as a workers' compensation excess insurer or reinsurer is not required to submit an accident prevention services plan, but must provide to the division a legally binding document confirming it will not act as a primary insurer. Should the insurance company subsequently elect to become a primary insurer, it will submit an accident prevention services plan as described in subsection (a) of this section for evaluation and approval prior to writing insurance as a primary provider.
2. (b) Notification to the commission when resuming writing of workers' compensation insurance. Any insurance company which has not written workers' compensation insurance with exposures in Texas for 12 months or more shall notify the division, in writing, within 60 days of writing its first such policy.

Source Note:The provisions of this §166.2 adopted to be effective September 1, 1995, 20 TexReg 5248.