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House Bill 1353 |
House Author: Cook, Robby |
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Effective: 9-1-05 |
Senate Sponsor: Duncan |
House Bill 1353 amends the Labor Code to create the Texas self-insurance group guaranty fund as a nonprofit association that provides for the payment of workers' compensation insurance benefits for injured employees covered by a group of private employers that is certified to self-insure for workers' compensation insurance coverage but that has been declared insolvent. The bill requires each group desiring certification to participate as a member of the guaranty fund. The guaranty fund is managed by a board of directors, and the bill specifies representation on the board and sets out the powers and duties of the board to take certain actions, including the requirement to create and maintain a trust fund for paying the workers' compensation liabilities of an insolvent group and the control and investment of money in the fund. The bill requires each group to contribute a certain amount to the trust fund. It specifies a process for disbursements from the trust fund if a group becomes insolvent and the required assessments on the group's members are insufficient to cover the incurred liabilities. The bill provides that if the guaranty fund has assumed compensation obligations on behalf of an insolvent group, the fund is entitled to immediate possession of any assets of the insolvent group and the fund has the same rights and defenses as the insolvent group regarding a workers' compensation claim. The bill further provides that a security deposit may be deposited with the commissioner of insurance in lieu of a bond in certain circumstances relating to the initial certificate of approval to organize as a workers' compensation self-insurance group.