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RULE §14.2031 Insurance Requirements


Published: 2015

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(a) LNG licensees or applicants for license shall comply
with the minimum amounts of insurance specified in Table 1 of this
section.
Attached Graphic
(b) Before LP-Gas Operations grants or renews a license,
the applicant shall submit either:
  (1) an insurance Acord™ form or any other form
approved by the Texas Department of Insurance that has been prepared
and signed by the insurance carrier and contains all required information.
The forms must be issued by an insurance company authorized or accepted
by the Texas Department of Insurance; or
  (2) properly completed documents demonstrating the
applicant's compliance with the self-insurance requirements in §14.2034
of this title (relating to Self-Insurance Requirements).
  (3) Certificates of insurance shall be continuous in
duration and shall remain on file with LP-Gas Operations during the
entire period that the license is in effect.
  (4) Documentation other than a certificate of insurance
may be accepted by LP-Gas Operations as evidence of required insurance
provided that the documentation contains the same information as required
on a certificate of insurance. The alternative documentation may be
accepted for a period not to exceed 45 days. During the temporary
period, a licensee shall file with LP-Gas Operations an amended certificate
of insurance which complies with the requirements of this section.
(c) Each licensee shall file LNG Form 2999 or other
written notice with LP-Gas Operations at least 30 calendar days before
the cancellation of any insurance coverage. The 30-day period commences
on the date the notice is actually received by LP-Gas Operations.
(d) A licensee or applicant for a license that does
not employ or contemplate employing any employees to be engaged in
LNG-related activities in Texas shall file LNG Form 2996B in lieu
of filing a workers' compensation insurance form, including employers'
liability insurance, or alternative accident and health insurance
coverage. The licensee or applicant for a license shall file the required
forms with LP-Gas Operations before hiring any person as an employee
engaged in LNG-related work.
(e) A Category 25 or 35 licensee, applicant for a license,
or an ultimate consumer that does not operate or contemplate operating
a motor vehicle equipped with an LNG cargo container or does not transport
or contemplate transporting LNG by vehicle in any manner shall file
LNG Form 2997B in lieu of a motor vehicle bodily injury and property
damage insurance form, if this certificate is not otherwise required.
The licensee or applicant for a license shall file the required forms
with LP-Gas Operations before operating a motor vehicle equipped with
an LNG cargo container or transporting LNG by vehicle in any manner.
(f) A Category 15 licensee or applicant for a license
that does not engage in or contemplate engaging in any LNG-related
operations in Texas that would be covered by completed operations
and product liability insurance shall file LNG Form 2998B in lieu
of filing a completed operations and product liability insurance form.
The licensee or applicant for a license shall file the required forms
with LP-Gas Operations before engaging in any operations that require
completed operations and product liability insurance.
(g) A licensee or applicant for a license that does
not engage in or contemplate engaging in any LNG-related operations
that would be covered by general liability insurance shall file LNG
Form 2998B in lieu of a general liability insurance form. The licensee
or applicant for a license shall file the required forms with LP-Gas
Operations before engaging in any operations that require general
liability insurance.
(h) Notwithstanding the requirements specified in Table
1 of subsection (a) of this section that each licensee carry a policy
of workers' compensation insurance, the licensee may protect its employees
by obtaining accident and health insurance coverage from an insurance
company authorized to write such policies in Texas as an alternative
to workers' compensation coverage. The alternative coverage shall
be in the amounts specified in Table 1 of subsection (a) of this section.

(i) Each licensee shall promptly notify LP-Gas Operations
of any change in insurance coverage or insurance carrier by filing
a properly completed revised certificate of insurance; insurance Acord™
form; other form prepared and signed by the insurance carrier that
contains all the information required by the certificate of insurance;
or documents demonstrating the applicant's compliance with the self-insurance
requirements set forth in §14.2034 of this title (relating to
Self-Insurance Requirements). Failure to promptly notify LP-Gas Operations
of a change in the status of insurance coverage or insurance carrier
may result in an enforcement action and an administrative penalty.


Source Note: The provisions of this §14.2031 adopted to be effective May 26, 2003, 28 TexReg 4100; amended to be effective November 12, 2007, 32 TexReg 8128; amended to be effective December 24, 2012, 37 TexReg 9921