(a) A licensee or registered manufacturer shall not perform any activity authorized by its license or registration under §13.61 of this title (relating to License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals) unless insurance coverage required by this section is in effect. CNG licensees, registered manufacturers, or applicants for license or manufacturer registration shall comply with the minimum amounts of insurance specified in Table 1 of this section, with the self-insurance requirements in §13.63 of this title (relating to Self-Insurance Requirements), or the irrevocable letter of credit requirements in §13.64 of this title (relating to Irrevocable Letter of Credit), if applicable. Registered manufacturers are not eligible for self-insurance. Before AFS grants or renews a manufacturer registration, an applicant for manufacturer registration shall submit the documents required by paragraph (1) of this subsection. Before AFS grants or renews a license, an applicant for license shall submit:
(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;
(2) properly completed documents demonstrating the applicant's compliance with the self‑insurance requirements in §13.63 of this title; or
(3) properly completed documents demonstrating the applicant's compliance with the irrevocable letter of credit requirements in §13.64 of this title.
(b) A licensee, applicant for license, or an ultimate consumer that does not operate or contemplate operating a motor vehicle equipped with a CNG cargo container or does not transport or contemplate transporting CNG by vehicle in any manner may file CNG Form 1997B in lieu of filing 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 insurance form with AFS before operating a motor vehicle equipped with a CNG cargo container or transporting CNG by vehicle in any manner.
(c) A licensee, registered manufacturer, or applicant for a license or manufacturer registration that does not engage in or contemplate engaging in any activities that would be covered by general liability insurance may file CNG Form 1998B in lieu of filing a general liability insurance form. The licensee, registered manufacturer, or applicant for a license or manufacturer registration shall file the required insurance form with AFS before engaging in any activities that require general liability insurance.
(d) A licensee or applicant for license that does not employ or contemplate employing anyone to be engaged in CNG related activities in Texas may file 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 shall file the required insurance form with AFS before hiring any person as an employee engaged in CNG related work.
(e) A licensee, registered manufacturer, or applicant for a license or manufacturer registration that does not engage in or contemplate engaging in any CNG activities 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, registered manufacturer, or applicant for a license or manufacturer registration shall file the required insurance form with AFS before engaging in any activities that require completed operations and/or products liability insurance.
(f) 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.
(g) Each licensee or registered manufacturer shall file CNG Form 1999 or other written notice with AFS 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 AFS.
(h) Each licensee or registered manufacturer shall promptly notify AFS of any change in insurance coverage or insurance carrier by filing a 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. Failure to promptly notify AFS of a change in the status of insurance coverage or insurance carrier may result in an enforcement action and an administrative penalty.
(i) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements of this section for workers' compensation, general liability and/or motor vehicle liability insurance. The requirements may be met by submitting evidence of self-insurance that complies with the requirements of §13.63 or §13.64 of this title. CNG Form 1995 may be filed as evidence of self-insurance, if self-insurance is permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §116.036.
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; amended to be effective February 15, 2021, 46 TexReg 1035