(a) CNG 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 containing 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 §13.63
of this title (relating to Qualification as Self-Insured).
(c) A licensee shall not perform any licensed activity
under §13.61 of this title (relating to Licensing) unless insurance
coverage required by this section is in effect.
(d) Except as provided in the column relating to Statements
in Lieu of Required Insurance Filing in Table 1, subsection (a) of
this section, and paragraphs (1) - (5) of this subsection, the types
and amounts of insurance specified in subsection (a) of this section
are required while engaging in any of the activities set forth in
this section or any activity incidental thereto.
  (1) A Category 3 licensee or applicant for license
or ultimate consumer that does not operate or contemplate the operation
of a CNG transport and does not transport or contemplate the delivery
of CNG cylinders by vehicle in any manner may file a CNG Form 1997B
in lieu of filing motor vehicle bodily injury and property damage
liability insurance form. The licensee or applicant for a license
must file the required insurance form with LP-Gas Operations before
operating a motor vehicle equipped with a CNG cargo container or transporting
CNG by vehicle in any manner.
  (2) A licensee or applicant for a license that does
not engage in or contemplate engaging in any operations which would
be covered by general liability insurance may file a CNG Form 1998B
in lieu of filing a general liability insurance form. The licensee
or applicant for a license must file the required insurance form with
LP-Gas Operations before engaging in any operations that require general
liability insurance.
  (3) A licensee or applicant for license that does not
employ or contemplate the hiring of an employee or employees to be
engaged in CNG related activities in Texas may file a CNG Form 1996B
in lieu of filing a workers' compensation insurance form, including
employer's liability insurance or alternative accident and health
insurance coverage. The licensee or applicant for a license must file
the required insurance form with LP-Gas Operations before hiring any
person as an employee engaged in CNG related work.
  (4) A licensee or applicant for a license that does
not engage in or contemplate engaging in any CNG operations that would
be covered by completed operations or products liability insurance,
or both, may file CNG Form 1998B in lieu of a completed operations
and/or products liability insurance form. The licensee or applicant
for a license shall file the required insurance form with LP-Gas Operations
before engaging in any operations that require completed operations
and/or products liability insurance.
  (5) A licensee may protect its employees by obtaining
accident and health insurance coverage from an insurance company authorized
to write such policies in this state as an alternative to workers'
compensation coverage. The alternative coverage shall be in the amounts
specified in Table 1 of this section.
(e) As evidence that required insurance has been secured
and is in force, insurance forms which are approved by the Texas Department
of Insurance shall be filed with LP-Gas Operations before licensing,
license renewal, and during the entire period that the license is
in effect. Any document filed with LP-Gas Operations in a timely manner
which is not completed in accordance with the instructions indicated
on the insurance forms supplied by LP-Gas Operations, but which complies
with the substantive requirements of this section and with the rules
adopted under this section, may be considered by LP-Gas Operations
to be evidence that required insurance has been secured and is in
force for a temporary period not to exceed 45 days. During this temporary
period, a licensee shall file with LP-Gas Operations an amended certificate
of insurance which complies with all procedural and substantive requirements
of this section and this chapter.
(f) All certificates filed under this section shall
be continuous in duration and shall remain on file with LP-Gas Operations
during the entire period that the license is in effect.
(g) Each licensee shall file CNG Form 1999 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.
(h) A state agency or institution, county, municipality,
school district, or other governmental subdivision may meet the requirements
relating to general liability and/or motor vehicle liability insurance
or workers' compensation coverage by filing CNG Form 1995 with LP-Gas
Operations as evidence of self-insurance, if permitted by the Texas
Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §116.036.

(i) Each licensee shall promptly notify LP-Gas Operations
of any change in insurance coverage or insurance carrier by filing
a properly completed revised Acord™ form; other form approved
by the Texas Department of Insurance that has been prepared and signed
by the insurance carrier containing all required information; or documents
demonstrating the applicant's compliance with the self-insurance requirements
set forth in §13.63 of this title (relating to Qualification
as Self-Insured). 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 §13.62 adopted to be effective November 15, 1990, 15 TexReg 5941; amended to be effective October 15, 1993, 18 TexReg 6457; amended to be effective November 29, 1993, 18 TexReg 8457; amended to be effective June 5, 2006, 31 TexReg 4604; amended to be effective November 12, 2007, 32 TexReg 8127; amended to be effective December 24, 2012, 37 TexReg 9917