2005 Texas Labor Code CHAPTER 406A. GROUP PURCHASE OF WORKERS\' COMPENSATION INSURANCE COVERAGE

LABOR CODE

CHAPTER 406A. GROUP PURCHASE OF WORKERS' COMPENSATION INSURANCE 
COVERAGE


	§ 406A.001. DEFINITIONS.                                                    

Text of section effective April 1, 2007
	In this chapter:                                                               
		(1)  "Business entity" means a business enterprise 
owned by a single person or a corporation, organization, business 
trust, trust, partnership, joint venture, association, or other 
business entity.
		(2)  "Commissioner" means the commissioner of 
insurance.                    
		(3)  "Department" means the Texas Department of 
Insurance.                  

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.002. CERTIFICATION PROGRAM.                                          

Text of section effective April 1, 2007
	(a)  The department shall:                                                     
		(1)  maintain a certification program for groups 
organized under this chapter;  and
		(2)  issue certificates of approval to eligible 
business entities authorizing formation and maintenance of a group.
	(b)  The commissioner by rule shall adopt forms, criteria, 
and procedures for issuing certificates of approval to groups under 
this chapter.

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.003. FORMATION OF GROUP.                                             

Text of section effective April 1, 2007
	(a)  On receipt of a certificate of approval issued by the 
department under this chapter, two or more business entities or two 
or more members of a trade association may join together to form a 
group to purchase individual workers' compensation insurance 
policies covering each member of the group.
	(b)  To be eligible to join a group, a business entity must:                   
		(1)  be engaged in a business pursuit that is the same 
as or similar to the other business entities participating in the 
group as determined by the department;  or
		(2)  be a member of the same trade association as the 
other business entities participating in the group.

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.004. PLAN OF OPERATION.                                              

Text of section effective April 1, 2007
	(a)  A group shall:                                                            
		(1)  adopt a plan of operation;  and                                          
		(2)  file a copy of the plan of operation with the 
department.              
	(b)  The plan of operation must include:                                       
		(1)  provisions governing the composition and 
selection of a governing board;
		(2)  the methods for administering the group;  and                            
		(3)  guidelines governing the workers' compensation 
insurance coverage obtained by the group that include provisions 
governing:
			(A)  the payment of premiums;                                                
			(B)  the distribution of discounts;  and                                     
			(C)  the methods for providing risk management.                              

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.005. GROUP PURCHASE AUTHORIZED.                                      

Text of section effective April 1, 2007
	A group certified under this chapter may purchase individual 
workers' compensation insurance policies covering each member of 
the group from any insurer authorized to write workers' 
compensation insurance in this state.

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.006. POLICY RATES.                                                   

Text of section effective April 1, 2007
	Rates for policies purchased under this chapter must be 
computed using manual rules and rates.  The department shall 
determine any experience rating factor that must be applied to 
those policies as provided by the commissioner by rule.

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.007. GROUP DISCOUNT.                                                 

Text of section effective April 1, 2007
	(a)  A group that purchases a policy under this chapter is 
entitled to any premium or volume discount that would be applicable 
to a policy of the combined premium amount.
	(b)  A group shall apportion any discount or policyholder 
dividend received on workers' compensation insurance coverage 
among the members of the group according to a formula adopted in the 
plan of operation for the group.

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.          


	§ 406A.008. APPLICABILITY OF OTHER LAW.                                     

Text of section effective April 1, 2007
	(a)  A group established under this chapter is entitled to 
any deviation applicable under Section 2052.004, 2053.051, or 
2053.052(a) or (b), Insurance Code.
	(b)  A member of a group is not subject to the discounts and 
surcharges established under Subchapter F, Chapter 2053, Insurance 
Code.

Added by Acts 2005, 79th Leg., ch. 727, § 17, eff. April 1, 2007.