1. (a) All contractors contracting and providing coverage under Article 3.50-4A, Insurance Code, shall:

   1. (1) administer enrollment;
   2. (2) adjudicate all claims related to the coverage, except for eligibility of participant under the statute, which shall remain the responsibility of the Teacher Retirement System as trustee;
   3. (3) coordinate services under the insurance coverages provided under Insurance Code Article 3.50-4A; and
   4. (4) account for any premiums collected and disbursed under the coverages.

2. (b) To be eligible to bid on providing long-term care insurance, a carrier must:

   1. (1) have had during the preceding calendar year at least $10 million of long-term care premium income;
   2. (2) currently have capital and surplus of at least $500 million; and
   3. (3) currently have at least three ratings within the top four rating categories as defined by the major insurance industry rating agencies. If a carrier is not rated, it may satisfy this requirement by showing that the carrier has twice the minimum financial requirements as stated in paragraphs (1) and (2) of this subsection.

3. (c) To be eligible to bid on providing optional permanent life insurance a carrier must:

   1. (1) have had at least $200 million of individual life premium income during the last calendar year;
   2. (2) currently have capital and surplus of at least $500 million; and
   3. (3) currently have at least three ratings within the top four rating categories as defined by the major insurance industry rating agencies. If a carrier is not rated, it may satisfy this requirement by showing that the carrier has twice the minimum financial requirements as stated in paragraphs (1) and (2) of this subsection.

4. (d) To be eligible to bid on providing disability insurance a carrier must:

   1. (1) have had during the preceding calendar year at least $50 million of short-term and long-term disability combined premium income;
   2. (2) currently have capital and surplus of at least $500 million; and
   3. (3) currently have at least three ratings within the top four rating categories as defined by the major insurance industry rating agencies. If not rated, a carrier may satisfy this requirement by showing that the carrier has twice the minimum financial requirements as stated in paragraphs (1) and (2) of this subsection.

Source Note:The provisions of this §41.15 adopted to be effective May 10, 2000, 25 TexReg 4189; amended to be effective March 12, 2003, 28 TexReg 2113.