(a) Annual recalculation. An approved PEO must recalculate the required amount of its letter of credit every year, not later than 60 days after negotiating the plan's stop-loss insurance agreement for the current plan year, using the formula stated in §13.562(b) of this title (relating to Deposit or Letter of Credit Required).
(b) Changes to letter of credit.
  (1) If a letter of credit is not renewed or replaced, the commissioner must not be prevented from withdrawing the balance of the letter of credit and placing that sum in trust to secure continuing obligations until the commissioner has received a renewal letter of credit or an acceptable substitute.
  (2) If a letter of credit is not renewed or replaced, or if it is suspended, the approved PEO and the issuing qualified financial institution must give the commissioner immediate notice of the nonrenewal, replacement, or suspension.

Source Note: The provisions of this §13.566 adopted to be effective May 17, 2016, 41 TexReg 3479