(a) The division shall audit certified self-insurers as frequently as necessary to assure compliance with the Texas Workers' Compensation Act and division rules, but shall audit each certified self-insurer at least once every three years.     
      (b) An audit may include, but not be limited to:      
        (1) any representation made on an application or in an annual report required by §114.15(b) of this title (relating to Revocation of Certificate of Authority to Self-Insure);       
        (2) payroll and classification;       
        (3) loss history;       
        (4) claims administration;       
        (5) loss reserves;       
        (6) interviews of the certified self-insurer, its agents, or employees regarding any matter within their knowledge and pertaining to the obligations of the certified self-insurer under the Act or division rules; and       
        (7) any other issue deemed appropriate by the division.       
      (c) A written report shall be provided to the certified self-insurer within 30 days after the audit is completed.     
      (d) A certified self-insurer's unreasonable refusal to make the required information available constitutes:      
        (1) grounds for revocation of the certificate; and       
        (2) a Class A administrative violation, with each day of noncompliance constituting a separate violation.       
     Source Note:        The provisions of this §114.11 adopted to be effective January 1, 1993, 17 TexReg 7896; amended to be effective May 9, 2004, 29 TexReg 4186; amended to be effective January 6, 2019, 44 TexReg 99