(a) The division shall request review and approval of the Association by forwarding a summary of the relevant application information after the division deems the application complete and finds the applicant’s financial information required under §114.3 of this title (relating to Application Form and Financial Information Requirements) reflects one of the following qualifying financial ratings:
(1) Dun & Bradstreet rating of 3A1 or better;
(2) Standard & Poor’s rating of BBB or better;
(3) Moody’s rating of Baa or better; or
(4) minimum tangible net worth of $5 million with a ratio of tangible net worth to long-term debt of 1.5 to one or greater.
(b) The division may audit information supplied by an employer applying for a certificate.
(c) The division shall recommend an applicant for certification only with approval of the application by the Association. Failure of the Association to respond within 120 days after the Association’s receipt of the information provided for in subsection (a) of this section will be deemed as the Association’s approval of an applicant to be a certified self-insurer.
(d) Within a reasonable time after approval by the Association of a completed application, the division will recommend to the commissioner approval or denial of the application at a public meeting for self-insurance business (generally quarterly) that follows the completion of an application and the approval process described in subsection (c) of this section.
The provisions of this §114.7 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.