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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and regulation of certain consolidated |
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insurance programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 2, Insurance Code, is amended by adding |
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Subtitle C to read as follows: |
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SUBTITLE C. PROGRAMS AFFECTING MULTIPLE LINES OF INSURANCE |
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CHAPTER 151. CONSOLIDATED INSURANCE PROGRAMS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 151.001. DEFINITIONS. In this chapter: |
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(1) "Administrator" means a person who operates and |
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manages a consolidated insurance program on behalf of a principal. |
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The term includes a person who, in the regular course of business, |
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operates and manages a consolidated insurance program as an agent |
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of a principal. |
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(2) "Consolidated insurance program" means a program |
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under which a principal, for a contractor or contractors on a |
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construction project, provides insurance coverages that are |
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bundled into one insurance program for a single construction |
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project or multiple construction projects. A consolidated |
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insurance program may include only one type of insurance. |
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(3) "Construction project" means construction, |
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remodeling, maintenance, or repair of improvements to real |
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property. |
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(4) "Construction project site" means the immediate |
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construction location and areas emanating from that location, such |
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as adjacent sidewalks, streets, storage areas, temporary |
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construction yards, and staging areas. |
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(5) "Contractor" includes: |
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(A) a prime contractor; |
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(B) a general contractor; |
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(C) a subcontractor; and |
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(D) any other person who receives insurance |
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coverage under an insurance policy or contract subject to this |
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chapter. |
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(6) "Insurance credit" means a discount on a contract |
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price offered to a principal by a contractor bidding on a |
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construction project contract in consideration of the principal |
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providing insurance coverage for the construction project that |
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covers the contractor. |
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(7) "Residential construction project" means a |
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construction project involving a single-family house, a duplex, a |
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triplex, a quadruplex, or a unit in a multi-unit structure used for |
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residential purposes: |
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(A) that is: |
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(i) owned by one or more adult persons; and |
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(ii) used or intended to be used as a |
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dwelling by one of the owners; or |
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(B) being constructed or intended to be newly |
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constructed with the intention of sale to a person and for a purpose |
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described by Paragraph (A). |
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Sec. 151.002. PRINCIPAL. (a) For purposes of this chapter, |
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"principal" means the person who procures the insurance contract or |
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policy. |
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(b) The principal under a consolidated insurance program is |
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the person responsible for the payment of the premium on the |
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insurance coverage. The principal is typically the first named |
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insured on the insurance contract or policy. |
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Sec. 151.003. RULES. The commissioner shall adopt rules in |
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the manner provided by Subchapter A, Chapter 36, as necessary to |
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implement and enforce the purpose and intent of this chapter and to |
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provide for the protection of policyholders, insureds, and workers |
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under a consolidated insurance program. |
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[Sections 151.004-151.050 reserved for expansion] |
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SUBCHAPTER B. GENERAL REQUIREMENTS FOR |
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CONSOLIDATED INSURANCE PROGRAM |
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Sec. 151.051. GENERAL REQUIREMENTS. An insurance contract |
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or policy issued under a consolidated insurance program must: |
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(1) provide coverages in the manner required by the |
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department under this code; and |
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(2) comply with the requirements adopted under this |
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chapter. |
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Sec. 151.052. REQUIRED COVERAGES. (a) An insurance policy |
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or contract issued under a consolidated insurance program must |
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provide coverages for all operations on the construction project |
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site that are necessary and incidental to the construction project |
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to the extent of the general type of insurance that is provided |
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under the policy or contract. |
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(b) This chapter may not be interpreted to prevent a |
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contractor from obtaining, and charging the cost of to the |
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principal, any insurance coverage not provided by the consolidated |
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insurance program to protect the contractor and the construction |
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project. |
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Sec. 151.053. NOTICE OF CERTAIN CHANGES. (a) Except as |
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provided by Subsection (b), after the execution of a construction |
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contract by the principal, the operations or coverages under the |
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consolidated insurance program may not be materially changed, |
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nonrenewed, or canceled without written notice provided to the |
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principal and all contractors. The notice required under this |
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subsection must be provided not later than the 60th day before the |
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effective date of the material change, nonrenewal, or cancellation. |
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(b) A notice to cancel coverage due to nonpayment of premium |
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is effective only after written notice provided to the principal at |
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least 10 days before the scheduled effective date of the |
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cancellation due to nonpayment of premium. |
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(c) If any coverage is canceled, the insurer or |
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administrator shall notify each contractor in writing that coverage |
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has been canceled. The notice under this subsection must be sent |
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not later than the effective date of the cancellation of coverage. |
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Sec. 151.054. RIGHTS OF CONTRACTOR. (a) If the operations |
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or coverages under a consolidated insurance program are materially |
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changed, nonrenewed, or canceled, and are not replaced by the |
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principal with equivalent operations or coverages, a contractor is |
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entitled to: |
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(1) an increase in the contractor's construction |
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project contract price to cover: |
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(A) the contractor's cost of insurance and |
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overhead costs for procurement of insurance to replace the coverage |
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provided by the consolidated insurance program; or |
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(B) the contractor's typical standard insurance |
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coverage for the same general type of coverages provided under the |
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consolidated insurance program; or |
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(2) suspend the contractor's construction project |
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contract without recourse or liability for damage to any person if: |
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(A) the contractor has made a reasonable effort |
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to obtain replacement insurance coverage; and |
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(B) the principal or another contractor does not |
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agree to a reasonable change in coverage, as provided by this |
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subsection. |
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(b) For purposes of Subsection (a), equivalent operations |
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or coverages includes coverages provided by, as applicable, an |
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insurer: |
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(1) that meets the requirements under Section 151.060; |
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or |
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(2) notwithstanding Section 151.060, with a financial |
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strength rating of at least A- and a financial size rating of at |
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least Class XI, as currently reported by the A. M. Best Company, if |
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replacement coverage is not available from an insurer that meets |
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the requirements adopted under Section 151.060. |
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(c) Subsection (a)(2) does not apply to construction work |
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that is not covered by the consolidated insurance program. |
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(d) A contractor who elects to suspend the contractor's |
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construction project contract under Subsection (a)(2): |
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(1) shall provide written notice of the suspension to |
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the principal and any other contractor covered under the |
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consolidated insurance program with whom the contractor has a |
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direct contractual relationship; and |
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(2) is entitled to payment for all properly performed |
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labor or properly furnished materials and equipment, including |
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overhead cost and profit for that labor, material, and equipment, |
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that is supplied by the contractor to the construction project |
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before the effective date of suspension of the contractor's |
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construction project contract. |
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(e) A contractor who suspends the contractor's construction |
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project contract under Subsection (a)(2) and is paid under |
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Subsection (d) is responsible for the labor, materials, and |
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equipment for which the contractor is paid as if the contract were |
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not suspended. |
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Sec. 151.055. COVERAGE OF CONTRACTORS; EFFECT OF SEPARATE |
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COVERAGE. (a) Each contractor on a construction project covered by |
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a consolidated insurance program must: |
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(1) be listed as an additional named insured on each |
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insurance policy and contract under the program; and |
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(2) have equal rights under the policy or contract |
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with the principal and other contractors, subject to industry |
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standard differences between a first-named insured and a named |
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insured. |
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(b) Subsection (a) does not apply to a policy or contract |
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that is issued individually in the name of the contractor as the |
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first-named insured under a consolidated insurance program. |
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(c) The principal or a contractor may not require a |
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contractor to obtain an additional insured endorsement on the |
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contractor's separately maintained insurance contract or policy |
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that is of the same general type as the insurance coverage provided |
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by the consolidated insurance program other than an insurance |
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policy or contract covering offsite work for ongoing operations |
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that is related to the project and that is not covered by the |
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consolidated insurance program. |
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(d) The coverages under the consolidated insurance program |
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must be primary and noncontributory to any insurance policy or |
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contract separately maintained by a contractor covered by the |
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consolidated insurance program that is of the same general type as |
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the insurance coverages provided by the consolidated insurance |
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program. |
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Sec. 151.056. COMPLIANCE BY PRINCIPAL AND OTHER |
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CONTRACTORS. (a) A principal under a consolidated insurance |
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program who does not comply with the requirements of this chapter |
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may not, directly or indirectly, including by deduction from a |
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payment or by requesting an insurance credit, charge a contractor |
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for any insurance coverage provided to the contractor by the |
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program. |
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(b) A contractor who contracts with a lower-tier contractor |
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may not charge the lower-tier contractor for any insurance coverage |
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if the principal has failed to comply with the requirements of this |
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chapter. |
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(c) For purposes of this section, noncompliance by a |
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principal includes material or significant matters and does not |
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include inadvertent errors that are not repeated in a way that would |
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cause a reasonable person to believe they are habitual or |
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premeditated. Dates set as deadlines in this chapter shall be |
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construed as material matters. |
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Sec. 151.057. SUBROGATION. (a) The principal and a |
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contractor do not have subrogation rights against each other for a |
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claim covered by the consolidated insurance program. |
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(b) A contractor and another contractor do not have |
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subrogation rights against each other for a claim covered by the |
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consolidated insurance program. |
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Sec. 151.058. APPLICATION TO GENERAL LIABILITY COVERAGE. |
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If a consolidated insurance program includes general liability |
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coverage, coverage for the construction project must be provided |
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for: |
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(1) a negligent act of a contractor, whether caused by |
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a direct act of the contractor or assumed under contract; and |
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(2) the contractor's ongoing operations and the |
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contractor's completed operations. |
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Sec. 151.059. DURATION OF GENERAL LIABILITY COVERAGE. (a) |
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A consolidated insurance program that provides general liability |
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coverage must continue completed operations insurance coverage |
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until the expiration of the limitations period for bringing an |
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action for damages as provided by Chapter 16, Civil Practice and |
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Remedies Code. |
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(b) A contractor's separately maintained insurance may not |
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exclude coverage for ongoing operations of the contractor for |
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warranty or punch-out work on a construction project covered by a |
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consolidated insurance program that occurs after the contractor has |
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received written notice from the principal, insurer, or |
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administrator that the consolidated insurance program has ended. |
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Sec. 151.060. INSURER REQUIREMENTS; INSURER RATINGS. (a) |
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All insurance coverages under a consolidated insurance program for |
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a residential or nonresidential construction project must be |
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provided by an insurer that has: |
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(1) a financial strength rating of at least A- and a |
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financial size rating of at least Class XIII, as currently reported |
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by the A. M. Best Company; or |
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(2) an equivalent rating made by a similar rating |
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organization recognized by the commissioner. |
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(b) Insurance policies or contracts providing coverage |
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under the consolidated insurance program shall be issued to the |
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first-named insured not later than the 30th day after the date on |
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which coverage has been bound or otherwise agreed to by the insurer. |
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(c) The requirements of this section must be maintained for |
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the duration of the construction project. |
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Sec. 151.061. INDEMNIFICATION. (a) On a construction |
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project covered by a consolidated insurance program, the |
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consolidated insurance program must provide liability insurance to |
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cover the obligation of a contractor insured under the consolidated |
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insurance program to indemnify, hold harmless, or defend another |
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person for any action that results in bodily injury or property |
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damage. |
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(b) The minimum liability insurance coverage required under |
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Subsection (a) must be equivalent to the coverage that would be |
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available under the general liability coverage provided by the |
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standard form promulgated by the Insurance Services Office and in |
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effect on January 1, 2008, or a more recent form adopted by the |
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commissioner by rule to replace that form. |
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(c) A contractor on a construction project on which a |
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consolidated insurance program is used and under which the |
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contractor is a participant in the program may not be required to |
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indemnify, hold harmless, or defend any claim for any action that |
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would be covered under the general liability coverage described by |
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Subsection (b) unless the general liability coverage provided by |
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the consolidated insurance program provides complete coverage for |
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such an obligation. A requirement that violates this subsection |
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that is included in a construction project contract is void. |
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Sec. 151.062. DEFENSE COVERAGE FOR CLAIM OR SUIT. (a) In |
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the event of a lawsuit or arbitration proceeding that is covered by |
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the consolidated insurance program, an insurance policy or contract |
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under the program must provide coverage for the defense of each |
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contractor. |
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(b) A contractor covered by a consolidated insurance |
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program has standing in any hearing or proceeding involving a |
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workers' compensation or liability claim, including any claim |
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adjustment and settlement negotiations, if that coverage is part of |
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the consolidated insurance program. The contractor is entitled to |
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representation at the hearing or proceeding by: |
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(1) an employee or agent of the contractor; and |
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(2) on the contractor's request, legal counsel covered |
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by the consolidated insurance program. |
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Sec. 151.063. PAYMENT OF CERTAIN DEDUCTIBLES, LOSSES, OR |
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PENALTIES. (a) Except as provided by Subsection (b), a principal |
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shall pay: |
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(1) any coverage deductibles or losses in a |
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retrospective rating plan or other loss-sensitive rating plan under |
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a consolidated insurance program; |
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(2) any penalties incurred under the program; and |
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(3) all deductibles applicable to any policy provided |
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under the consolidated insurance program. |
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(b) A principal may charge a contractor a small, reasonable |
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deductible for a property damage loss that is caused by the |
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contractor's direct negligence and is covered by the general |
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liability contract or policy of the consolidated insurance program |
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if the deductible amount and purpose are included in the disclosure |
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made at bid solicitation. The purpose of the deductible is to |
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encourage safe operations by the contractor. The deductible must |
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be in proportion to the size and severity of the loss, not to exceed |
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$5,000. |
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Sec. 151.064. PREMIUMS ASSESSED TO CONTRACTOR. If any |
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premiums for coverage under a consolidated insurance program on a |
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single or multiple construction project are assessed to a |
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contractor, the contractor's most recent experience modifier, as of |
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the date on which the construction project begins, must be used in |
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the computation of the premium to be assessed to the contractor. |
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The premium shall be adjusted annually to reflect any change in the |
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contractor's experience modifier. |
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Sec. 151.065. AUDIT REQUIREMENTS. (a) Except as provided |
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by Subsection (b), any required audit of a contractor covered by a |
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consolidated insurance program who is subject to a premium charge |
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for the coverage must be completed not later than the 60th day after |
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the date on which the contractor completes the work performed by the |
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contractor on the construction project. |
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(b) The audit completion date under Subsection (a) must be |
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extended by one day for each day the contractor subject to the audit |
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delays completion of the audit by failing to provide the auditor |
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with access to the contractor's records after the contractor has |
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received written notice from the administrator, insurer, or auditor |
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stating the date on which the audit is to be conducted. |
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Sec. 151.066. DATA REPORTS FOR WORKERS' COMPENSATION. (a) |
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The administrator shall report at least quarterly the loss and |
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payroll data that relates to a contractor in detail to the |
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contractor who is the subject of the report. |
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(b) The initial report under Subsection (a) must be sent not |
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later than the 30th day after the last day of the calendar quarter |
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on which work begins on the construction project, with subsequent |
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quarterly reports sent not later than the 15th day of the month |
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following the quarter covered by the report. |
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(c) The insurer shall report to the appropriate rating |
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bureau annually, not later than the 60th day after the ending date |
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of the experience rating period of a contractor who is the subject |
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of the report, the loss and payroll data that relates to the |
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contractor, with a final report not later than the 60th day after |
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the completion date of the construction project. |
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(d) A report under Subsection (c) must include data that has |
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been corrected after the investigation of any discrepancies |
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reported by a contractor. |
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(e) On receipt of written notice of any erroneous |
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information submitted to a rating bureau, the insurer shall notify |
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the rating bureau of the correct information not later than the 30th |
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day after the date on which the written notice is received by the |
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insurer. |
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(f) The completion date under Subsection (b), (c), or (e) |
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must be extended by one day for each day the contractor who is the |
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subject of the report delays completion of any necessary audit by |
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failing to provide the auditor with access to the contractor's |
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records after the contractor has received written notice from the |
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administrator, insurer, or auditor stating the date the audit is to |
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be conducted. |
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[Sections 151.067-151.100 reserved for expansion] |
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SUBCHAPTER C. COVERAGE LIMITS |
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Sec. 151.101. GENERAL REQUIREMENTS. Subject to Section |
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151.059, aggregate and per-occurrence limits of all insurance |
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coverages under a consolidated insurance program apply to all |
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contractors under the program for the term of each construction |
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project covered by the program. |
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Sec. 151.102. PER-OCCURANCE LIMITS. (a) For a residential |
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construction project, the per-occurrence limit must be not less |
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than the greater of: |
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(1) 20 percent of the overall construction project |
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value; or |
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(2) $5 million. |
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(b) For a nonresidential construction project that has an |
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overall construction project value that does not exceed $400 |
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million, the per-occurrence limit must be not less than the greater |
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of: |
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(1) 25 percent of the overall construction project |
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value; or |
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(2) $50 million. |
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(c) For a nonresidential construction project that has an |
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overall construction project value that exceeds $400 million, the |
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per-occurrence limit must be not less than $100 million. |
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Sec. 151.103. ANNUAL REINSTATEMENT OF LIABILITY LIMITS. The |
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consolidated insurance program must reinstate annually the |
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liability limits for each policy or contract subject to the program |
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or be replaced by other policies or contracts that provide |
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equivalent coverage and limits. This section does not apply to |
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completed operations coverage on completion of the construction |
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project. |
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Sec. 151.104. NOTICE REGARDING REDUCTION IN MONETARY LIMIT. |
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(a) The insurer shall notify all contractors in writing not later |
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than the 10th day after the date the total monetary limit of |
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liability coverage for any type of coverage issued under the |
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consolidated insurance program is reduced by: |
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(1) 50 percent; and |
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(2) each additional 10 percentage point reduction |
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after the initial 50 percent reduction. |
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(b) The reduction in monetary limit under Subsection (a) |
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shall be computed based on incurred losses and expenses. |
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(c) The notice under Subsection (a) must describe: |
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(1) the initial monetary limit of liability coverage; |
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and |
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(2) the monetary limit of liability coverage that |
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remains as of the notice date. |
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(d) For limits on coverages that have been extended by other |
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policies, the notice under Subsection (a) is required only if the |
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combined monetary limit of all policies providing the coverage has |
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been reached. |
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(e) The monetary limit of liability may not be reduced if |
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the insurer fails to comply with Subsection (a). |
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[Sections 151.105-151.150 reserved for expansion] |
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SUBCHAPTER D. DISCLOSURE REQUIREMENTS FOR ADMINISTRATION |
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OF CONSOLIDATED INSURANCE PROGRAM |
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Sec. 151.151. REQUIRED DISCLOSURE AT BID SOLICITATION. At |
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the time a principal or contractor is soliciting bids for a |
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construction project, the principal or contractor must disclose |
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prominently in the project plans, specifications, and any request |
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for bids or proposals that the project may be covered by a |
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consolidated insurance program subject to this chapter. |
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Sec. 151.152. GENERAL ELEMENTS OF BID SOLICITATION |
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DISCLOSURE. Each disclosure made under Section 151.151 must |
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include: |
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(1) the scope of coverage and limits for each |
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insurance policy or contract under the consolidated insurance |
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program, including an accurate specimen copy of full and complete |
|
declarations, policy conditions, limitations, coverages, and |
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endorsements; |
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(2) the scope of coverage and limits for each policy or |
|
contract of excess insurance covering the consolidated insurance |
|
program, including a statement that the excess policy or contract |
|
will follow form as to the primary policy or contract with any |
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material exceptions listed; and |
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(3) a complete description of the safety program |
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required by Subchapter E. |
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Sec. 151.153. REQUIRED DISCLOSURE PRIOR TO CONTRACT |
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EXECUTION. (a) A principal may establish for a construction |
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project a minimum construction contract amount for a contractor to |
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be included in a consolidated insurance program. |
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(b) A contractor who submits a price proposal for work on a |
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construction project under a consolidated insurance program is |
|
entitled to written notification from the principal or contractor |
|
of any material change in the consolidated insurance program not |
|
later than the 10th day before the date on which the contractor |
|
executes the contract for work on the construction project. |
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(c) After receipt of notice of any adverse material change |
|
under Subsection (b), a contractor may, without recourse or |
|
liability for damage to any person: |
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(1) withdraw the contractor's price proposal for work |
|
on the construction project; or |
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(2) modify the price for the insurance component of |
|
the proposal for work on the construction project. |
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(d) Not later than the seventh day before the date on which a |
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principal or contractor executes a contract for a construction |
|
project covered by a consolidated insurance program, the principal |
|
or contractor must make a written disclosure to the contractor that |
|
contains detailed information concerning the consolidated |
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insurance program. |
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Sec. 151.154. GENERAL ELEMENTS OF PRECONTRACT DISCLOSURE. |
|
Each disclosure made under Section 151.153 must include: |
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(1) the name and address of each insurer providing an |
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insurance policy or contract under the consolidated insurance |
|
program and identification of the coverage each insurer will |
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provide; |
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(2) the name, address, and telephone number of the |
|
insurance producer, if any, acting as agent for the insurer; |
|
(3) the name of the primary contact person of the |
|
insurance producer for the consolidated insurance program; |
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(4) the name, primary contact name, street address, |
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city, state, and zip code of the administrator of the consolidated |
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insurance program; |
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(5) a copy of each form, including enrollment forms, |
|
claim forms, and payroll forms, that a contractor may be required to |
|
submit to the principal, administrator, or insurer; |
|
(6) the number, frequency, and subject matter of any |
|
audits of the contractor required by the insurer, administrator, or |
|
principal; and |
|
(7) a detailed description of any differences in the |
|
items disclosed under Section 151.152 and the actual scope and |
|
limits of coverage for the consolidated insurance program, |
|
including any deviations from the specimen copy provided. |
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Sec. 151.155. FORMULA FOR INSURANCE CREDITS. (a) The |
|
disclosure required under Section 151.151 must include the formula |
|
to be used by a contractor in computing any insurance credits. |
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(b) The formula must include: |
|
(1) the discounts, credits, and rate variances used by |
|
the contractor; |
|
(2) examples of credit computations; and |
|
(3) a method to incorporate any scheduled credits, |
|
premium discounts, or other items of credit or discount that apply |
|
specifically to the contractor. |
|
(c) A principal may not require an insurance credit of a |
|
contractor for coverage provided under the consolidated insurance |
|
program that is of the same type as flat rate coverages maintained |
|
by the contractor. |
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Sec. 151.156. CONTRACT AWARD; BASIS. (a) The disclosure |
|
required under Section 151.151 must include a specific explanation |
|
of how any premium overruns or underruns will be applied and whether |
|
the contract award will be made on the basis that: |
|
(1) excludes the cost of insurance coverage; or |
|
(2) includes the cost of insurance coverage. |
|
(b) A contractor awarding a contract to another contractor |
|
must use the basis described under Subsection (a) for any |
|
contractor insured under the consolidated insurance program. |
|
[Sections 151.157-151.200 reserved for expansion] |
|
SUBCHAPTER E. SAFETY PROGRAM AND INJURED WORKERS |
|
Sec. 151.201. APPLICABILITY. This subchapter applies only |
|
if workers' compensation insurance coverage is a coverage provided |
|
by the consolidated insurance program. |
|
Sec. 151.202. SAFETY PROGRAM REQUIRED. (a) A principal |
|
shall adopt a comprehensive safety program designed to reduce the |
|
frequency and severity of worker injuries. The principal shall |
|
require participation in the safety program by all persons working |
|
on the construction project. |
|
(b) The safety program must include a program for detection |
|
of drug use and other substance abuse. |
|
(c) A qualified third-party safety company may administer |
|
and operate a safety program required under this section. |
|
Sec. 151.203. SAFETY PROFESSIONALS. (a) The principal, |
|
directly or through the principal's contract with a contractor, |
|
shall maintain a level of safety staffing and safety policies |
|
commensurate with the expected and actual hazards of the |
|
construction project. |
|
(b) A safety program conducted under this subchapter must |
|
have at least one qualified safety professional assigned to the |
|
construction project for primary safety responsibility. If the |
|
construction project value exceeds $25 million: |
|
(1) a safety professional must work not less than 40 |
|
hours weekly at the work site of the construction project; and |
|
(2) work may not take place at the work site without at |
|
least one qualified safety professional at the work site. |
|
(c) Except as provided by Subsection (d), to be qualified to |
|
serve as a safety professional under Subsection (b), a person must |
|
have demonstrable knowledge of 29 U.S.C. Chapter 15, and related |
|
regulations adopted by the federal Occupational Safety and Health |
|
Administration, and at least: |
|
(1) 10 years of primary safety responsibility |
|
experience in the construction industry; or |
|
(2) five years of primary safety responsibility |
|
experience in the construction industry and: |
|
(A) hold a bachelor of science degree conferred |
|
by an accredited institution of higher education, with a major in |
|
safety engineering, industrial hygiene, or a related field; |
|
(B) hold an associate's degree conferred by an |
|
accredited institution of higher education, with a major in safety |
|
engineering, industrial hygiene, or a related field; or |
|
(C) hold a current certification as a certified |
|
safety professional issued by an entity recognized by the |
|
commissioner. |
|
(d) To be qualified to serve as a safety professional under |
|
Subsection (b) for a nonresidential construction project that is |
|
solely for the maintenance or remodeling of an existing industrial |
|
plant facility that maintains an ongoing consolidated insurance |
|
program in its regular course of business for that maintenance or |
|
remodeling work at the industrial plant facility, a person must |
|
have demonstrable knowledge of 29 U.S.C. Chapter 15, and related |
|
regulations adopted by the federal Occupational Safety and Health |
|
Administration, and at least: |
|
(1) 10 years of primary safety responsibility |
|
experience in an industrial plant facility; or |
|
(2) five years of primary safety responsibility |
|
experience in an industrial plant facility and: |
|
(A) hold a bachelor of science degree conferred |
|
by an accredited institution of higher education, with a major in |
|
safety engineering, industrial hygiene, or a related field; or |
|
(B) hold an associate's degree conferred by an |
|
accredited institution of higher education, with a major in safety |
|
engineering, industrial hygiene, or a related field; or |
|
(C) hold a current certification as a certified |
|
safety professional issued by an entity recognized by the |
|
commissioner. |
|
Sec. 151.204. LIGHT DUTY FOR CERTAIN INJURED EMPLOYEES. The |
|
disclosure required under Section 151.151 must fully describe any |
|
light duty return-to-work program required for a contractor's |
|
injured employees. A return-to-work program must set forth a |
|
reasonable length of time any required light-duty program would be |
|
in place for any injured employee. The reasonable time period for |
|
light-duty work may vary due to the type of injury. |
|
Sec. 151.205. LIGHT DUTY STANDARDS. The consolidated |
|
insurance program may require the employer of an injured employee |
|
to provide alternative duty for an injured employee if: |
|
(1) the work status report, or similar report, of the |
|
department's division of workers' compensation completed by the |
|
injured employee's examining doctor specifies the injured |
|
employee's physical restrictions or limitations; |
|
(2) the examining doctor recommends that the injured |
|
employee return to work on a limited basis in compliance with the |
|
doctor's restrictions or limitations; |
|
(3) the alternate duty position is reasonably |
|
available and the activity provides a benefit for the employer; and |
|
(4) the cost to the contractor for any modifications |
|
to the workplace necessary in facilitating the injured employee's |
|
return to work based on restrictions or limitations identified by |
|
the examining doctor is reasonable. |
|
[Sections 151.206-151.250 reserved for expansion] |
|
SUBCHAPTER F. PROGRAM ADMINISTRATION |
|
Sec. 151.251. ADMINISTRATOR. (a) Each principal shall |
|
appoint a qualified administrator for the consolidated insurance |
|
program whose only duty is administration of the program. |
|
(b) To be eligible to serve as the administrator, a person |
|
must: |
|
(1) hold a risk manager license under Chapter 4153, a |
|
general property and casualty agent license under Chapter 4051, or |
|
another license as an insurance professional that is: |
|
(A) recognized as appropriate by the |
|
commissioner; and |
|
(B) issued under Title 13; and |
|
(2) have been licensed under this code for at least the |
|
five years preceding the date of the appointment as administrator. |
|
(c) Subsection (b) does not apply to a person that provides |
|
assistance to the administrator for support duties such as clerical |
|
or bookkeeping services. |
|
Sec. 151.252. POWERS AND DUTIES OF ADMINISTRATOR. (a) For |
|
purposes of this chapter, each contractor covered under the |
|
consolidated insurance program is considered a client of the |
|
administrator. An administrator shall comply in a timely manner |
|
with the requirements of this section. |
|
(b) The administrator shall administer the enrollment of |
|
all contractors covered by the consolidated insurance program as |
|
necessary to ensure immediate coverage. |
|
(c) The administrator shall: |
|
(1) maintain a current consolidated insurance program |
|
manual that contains a detailed description of the consolidated |
|
insurance program; and |
|
(2) provide all contractors with a current copy of the |
|
manual: |
|
(A) on the date of the contractor's enrollment in |
|
the program; and |
|
(B) not later than the seventh day after any |
|
updates are made to the manual. |
|
(d) The administrator shall issue a certificate of |
|
insurance on behalf of a contractor to represent the coverages and |
|
limits provided by the consolidated insurance program not later |
|
than the fifth day after receipt of a request from a contractor. |
|
(e) If the insurer has issued insurance policies or |
|
contracts, the administrator shall ensure that each contractor |
|
receives insurance policies or contracts, or renewal certificates |
|
for previously issued policies or contracts, for all coverages |
|
provided by the consolidated insurance program not later than the |
|
earlier of: |
|
(1) the 30th day after the date the contractor is |
|
enrolled in the program; or |
|
(2) the date the contractor begins work on the |
|
project. |
|
(f) The administrator shall coordinate: |
|
(1) any regular reporting required of the contractors |
|
and any audits required of the contractors; |
|
(2) all meetings with the insurer, whether with the |
|
principal, the contractors, or other parties; and |
|
(3) availability and communication between |
|
contractors and any on-site medical facilities. |
|
(g) The administrator shall maintain an organized paper and |
|
electronic file system that is available for immediate access. |
|
(h) The administrator shall establish and disseminate to |
|
contractors: |
|
(1) clear procedures for proper filing of claims; and |
|
(2) required loss-control procedures. |
|
(i) The administrator shall ensure that: |
|
(1) all insurance coverages provided by the |
|
consolidated insurance program are maintained; and |
|
(2) all contractors are notified in writing promptly |
|
of any changes or cancellation in coverages provided by the |
|
consolidated insurance program. |
|
(j) The administrator shall monitor the financial standing |
|
of the insurer as provided by Section 151.060 and shall provide |
|
written notice to the principal and all contractors of any |
|
significant negative change not later than the 10th day after the |
|
date of the negative change. |
|
(k) The administrator shall prepare and present to the |
|
principal on at least a monthly basis any required payroll reports, |
|
claim reviews, and loss-control reviews. |
|
(l) The administrator shall provide oversight and |
|
management of claims for the principal and any affected contractor |
|
until all claims are closed. |
|
Sec. 151.253. CONTRACTOR AS BENEFICIARY. For purposes of |
|
this chapter and insurance benefits under the consolidated |
|
insurance program, each contractor is considered a beneficiary of |
|
the administrator, and the administrator owes a fiduciary duty to |
|
each contractor that participates in the program. |
|
SECTION 2. Chapter 151, Insurance Code, as added by this |
|
Act, applies only to a consolidated insurance program for a |
|
construction project that begins on or after January 1, 2008. A |
|
consolidated insurance program for a construction project that |
|
begins before January 1, 2008, is governed by the law as it existed |
|
immediately before the effective date of this Act, and that law is |
|
continued in effect for that purpose. |
|
SECTION 3. This Act takes effect September 1, 2007. |