If a certified self-insurer becomes an impaired employer, the commissioner shall protect the employees of such employer by promptly:
(1) calling the security deposit and placing the funds in an account for the impaired employer;
(2) notifying the Association or other entity designated by the commissioner to assume the liabilities of the impaired employer; to begin paying, pursuant to Texas Labor Code §407.127, benefits out of the impaired employer’s account; and, if necessary, to notify the Association to begin paying benefits out of its trust fund; and
(3) estimating the amount of any additional funds needed to supplement the security deposit and available assets of the impaired employer and advise the Association of the amount the Association will need to assess each certified self-insurer to cover the estimated liabilities once the impaired employer’s security account has been expended.
The provisions of this §114.14 adopted to be effective January 1, 1993, 17 TexReg 7896; amended to be effective May 9, 2004, 29 TexReg 4186; amended to be effective January 6, 2019, 44 TexReg 99.