CHAPTER 2055. GROUP PURCHASE OF WORKERS' COMPENSATION INSURANCE COVERAGE
INSURANCE CODE
TITLE 10. PROPERTY AND CASUALTY INSURANCE
SUBTITLE E. WORKERS' COMPENSATION INSURANCE
CHAPTER 2055. GROUP PURCHASE OF WORKERS' COMPENSATION
INSURANCE COVERAGE
Sec. 2055.001. DEFINITION. In this chapter, "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.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.0591(b), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.001 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.0591(b), eff. September 1, 2007.
Sec. 2055.002. CERTIFICATION PROGRAM. (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, Sec. 17, eff. April 1, 2007.
Redesignated from Labor Code, Section 406A.002 by Acts 2007, 80th
Leg., R.S., Ch.
730, Sec. 3B.0591(a)(2), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.002 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Sec. 2055.003. FORMATION OF GROUP. (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, Sec. 17, eff. April 1, 2007.
Redesignated from Labor Code, Section 406A.003 by Acts 2007, 80th
Leg., R.S., Ch.
730, Sec. 3B.0591(a)(2), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.003 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Sec. 2055.004. PLAN OF OPERATION. (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, Sec. 17, eff. April 1, 2007.
Redesignated from Labor Code, Section 406A.004 by Acts 2007, 80th
Leg., R.S., Ch.
730, Sec. 3B.0591(a)(2), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.004 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Sec. 2055.005. GROUP PURCHASE AUTHORIZED. 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, Sec. 17, eff. April 1, 2007.
Redesignated from Labor Code, Section 406A.005 by Acts 2007, 80th
Leg., R.S., Ch.
730, Sec. 3B.0591(a)(2), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.005 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Sec. 2055.006. POLICY RATES. 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, Sec. 17, eff. April 1, 2007.
Redesignated from Labor Code, Section 406A.006 by Acts 2007, 80th
Leg., R.S., Ch.
730, Sec. 3B.0591(a)(2), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.006 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Sec. 2055.007. GROUP DISCOUNT. (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, Sec. 17, eff. April 1, 2007.
Redesignated from Labor Code, Section 406A.007 by Acts 2007, 80th
Leg., R.S., Ch.
730, Sec. 3B.0591(a)(2), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.007 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Sec. 2055.008. APPLICABILITY OF OTHER LAW. (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).
(b) A member of a group is not subject to the discounts and
surcharges established under Subchapter F, Chapter 2053.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.0591(c), eff. September 1, 2007.
Redesignated from Labor Code, Section 406A.008 by Acts 2007, 80th
Leg., R.S., Ch.
921, Sec. 9.0591(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.0591(c), eff. September 1, 2007.