Texas Labor Code
§ 407A.458 — EFFECT OF INSOLVENCY OF GROUP
LA § 407A.458Title 5. WORKERS' COMPENSATION · Part A. TEXAS WORKERS' COMPENSATION ACT · Ch. 407A. GROUP SELF-INSURANCE COVERAGE · Art. J. TEXAS SELF-INSURANCE GROUP GUARANTY FUND
Statute text
View on source(a)On determining that a group has become insolvent, the commissioner shall secure release of the surety bond or security deposit required under Section 407A.053 and shall promptly estimate:
(1)the amount of additional funds needed to supplement the bond or security deposit; and
(2)the assets of the insolvent group available to pay all incurred compensation liabilities.
(b)If the bond or security deposit and the available assets of the insolvent group are insufficient to cover all of the group's incurred compensation liabilities, the commissioner shall direct the insolvent group to immediately assess its members to cover all incurred liabilities under a schedule approved by the commissioner.
(c)If the assessments under Subsection (b) will be insufficient to cover the incurred liabilities, the commissioner shall estimate the additional funds necessary to cover the incurred liabilities for benefit compensation and related administration expenses for the insolvent group. On receipt of the commissioner's estimate, the board shall provide from the trust fund the additional funds needed for benefit compensation and related administrative expenses for the insolvent group.
(d)Disbursements from the trust fund under Subsection (c) shall be replenished:
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Legislative history
Added by Acts 2005, 79th Leg., Ch. 1055 (H.B. 1353), Sec. 1, eff. September 1, 2005.