The Texas Department of Insurance, Division of Workers Compensation (TDI-DWC) approved one initial application and 13 renewals of certificates of authority, to self-insure for workers compensation claims for a one-year period under the TDI-DWC Self Insurance Program to 14 companies employing approximately 188,000 employees in Texas.
Under Texas law, certain large, private companies can self-insure for workers compensation claims, while retaining the protection of the Texas Workers Compensation Act for the company and for its employees. To qualify, a company must have a minimum workers compensation insurance unmodified manual premium of $500,000 and meet other requirements subject to annual review.(WCxKit)
According to the Texas Department of Insurance, certified self-insurance is a program that allows private employers in Texas to self-insure for their workers compensation losses – it is allowed because workers compensation coverage is not mandatory in Texas. Employers wanting to self-insure apply to the TDI-DWC and, if approved, pays its own workers compensation losses.
The companies affected by the most recent self-insurance certificates are:
- AAA Cooper Transportation, Dothan, AL
- American Electric Power Company Inc., Heath, OH
- Archer-Daniels-Midland Company, Decatur, IL
- Baker Concrete Construction Inc., Monroe, OH (new to program)
- FedEx Ground Package System, Inc., Pittsburgh, PA
- Hyatt Corporation, Chicago, IL
- Limited Brands Inc., Columbus, OH
- Lockheed Martin Corporation, Fort Worth
- Parker-Hannifin Corporation, Cleveland, OH
- Poly-America L.P., Grand Prairie
- Sam Kane Beef Processors Inc., Corpus Christi
- Union Tank Car Company, Chicago, IL
- VF Corporation, Greensboro, NC
- Wal-Mart Associates Inc., Bentonville, AR
Among the qualifications for self-insurance in Texas are the following:
- A private employer with operations in Texas.
- An estimated unmodified manual insurance premium of at least $500,000 in Texas, or at least $10,000,000 nationwide.
- Presentation of audited financial statements.
- Qualifying Credit/Debt ratings.
- A qualifying Tangible Net Worth to Long Term Debt ratio of 1.5 to 1, with Minimum Tangible Net Worth of $5 million.
- Posting of a minimum security deposit of $300,000.
- Posting of excess insurance in the amount of $5 million per occurrence.
- Submission of an “Application for Certificate of Authority” to SIR; and
- Payment of a non-refundable $1,000 application fee.
In other news, the TDI-DWC will be hosting some educational sessions on pharamacy closed formulary. The sessions are open to are for all Texas workers compensation participants, including health care providers, pharmacists, insurance carriers, claim adjusters, case managers, and attorneys. The free sessions provide information on the new TDI-DWC pharmacy closed formulary rules, adopted in December 2010 for both certified workers compensation network (network) and non-network claims with dates of injury on or after Sept. 1, 2011. The sessions will provide information on the definition and application of both the open and closed formularies.(WCxKit)
For more details, visit the TDI-DWC Events and Training Calendar on the TDI website at www.tdi.texas.gov/wc/events/index.html.
- Abilene Nov. 10, 2011
- Amarillo Oct. 25, 2011
- Austin Oct. 20, 2011
- Beaumont Nov. 17, 2011
- Bryan Nov. 30, 2011
- Corpus Christi Nov. 3, 2011
- Dallas* Nov. 8, 2011
- El Paso Oct. 18, 2011
- Houston** Nov. 15, 2011
- Laredo Nov. 3, 2011
- Lubbock Oct. 25, 2011
- Lufkin Nov. 17, 2011
- Midland Nov. 10, 2011
- San Angelo Nov. 10, 2011
- San Antonio Oct. 27, 2011
- Tyler Nove. 30, 2011
- Waco Nov. 30, 2011
- Weslaco Oct. 25, 2011
- Wichita Falls Nov. 30, 2011
This information was provided by attorney Stuart Colburn, a Shareholder at Downs Stanford in Austin, Texas. Colburn has extensive experience in all phases of dispute resolution before the Texas Department of Insurance, Division of Workers Compensation and in district courts across the state. Stuart represents clients regarding workers compensation, non-subscription, subrogation, and bad faith litigation. He is the founder and the first chairman of the State Bar of Texas (SBOT) Workers Compensation Section; course coordinator for the SBOT the Advanced Workers Compensation Seminar; and course coordinator for the Texas Workers Compensation Forum. He can be reached at: scolburn@downsstanford.com
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
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