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Texas Statutes (Last Updated: January 4, 2014) |
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LABOR CODE |
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Title 2. PROTECTION OF LABORERS |
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Subtitle E. REGULATION OF CERTAIN OCCUPATIONS |
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Chapter 91. STAFF LEASING SERVICES |
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Subchapter D. POWERS AND DUTIES OF LICENSE HOLDER |
Sec. 91.042. WORKERS' COMPENSATION INSURANCE; ADMINISTRATIVE VIOLATION
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(a) A license holder may elect to obtain workers' compensation insurance coverage for the license holder's assigned employees through an insurance company as defined under Section 401.011(28) or through self-insurance as provided under Chapter 407.
(b) If a license holder maintains workers' compensation insurance, the license holder shall pay workers' compensation insurance premiums based on the experience rating of the client company for the first two years the client company has a contract with the license holder and as further provided by rule by the Texas Department of Insurance.
(c) For workers' compensation insurance purposes, a license holder and the license holder's client company shall be coemployers. If a license holder elects to obtain workers' compensation insurance, the client company and the license holder are subject to Sections 406.034 and 408.001.
(d) If a license holder does not elect to obtain workers' compensation insurance, both the license holder and the client company are subject to Sections 406.004 and 406.033.
(e) After the expiration of the two-year period under Subsection (b), if the client company obtains a new workers' compensation insurance policy in the company's own name or adds the company's former assigned workers to an existing policy, the premium for the workers' compensation insurance policy of the company shall be based on the lower of:
(1) the experience modifier of the company before entering into the staff leasing arrangement; or
(2) the experience modifier of the license holder at the time the staff leasing arrangement terminated.
(f) On request, the Texas Department of Insurance shall provide the necessary computations to the prospective workers' compensation insurer of the client company to comply with Subsection (e).
(g) On the written request of a client company, a license holder that elects to provide workers' compensation insurance for assigned employees shall provide to the client company a list of:
(1) claims associated with that client company made against the license holder's workers' compensation policy; and
(2) payments made and reserves established on each claim.
(h) The license holder shall provide the information described by Subsection (g) in writing from the license holder's own records, if the license holder is a qualified self-insurer, or from information the license holder received from the license holder's workers' compensation insurance provider following the license holder's request under Section 2051.151, Insurance Code, not later than the 60th day after the date the license holder receives the client company's written request. For purposes of this subsection, information is considered to be provided to the client company on the date the information is:
(1) received by the United States Postal Service; or
(2) personally delivered to the client company.
(i) A license holder that fails to comply with Subsection (g) or (h) commits a Class D administrative violation as provided by Section 415.011.