Tex. Labor Code Section 406.007
Termination of Coverage by Employer; Notice

(a)

An employer who terminates workers’ compensation insurance coverage obtained under this subtitle shall file a written notice with the division not later than the 10th day after the date on which the employer notified the insurance carrier to terminate the coverage. The notice must include a statement certifying the date that notice was provided or will be provided to affected employees under Section 406.005 (Employer Notice to Employees; Administrative Violation).

(b)

The notice required under this section shall be filed with the division in accordance with Section 406.009 (Collecting and Maintaining Information; Monitoring and Enforcing Compliance).

(c)

Termination of coverage takes effect on the later of:

(1)

the 30th day after the date of filing of notice with the division under Subsection (a); or

(2)

the cancellation date of the policy.

(d)

The coverage shall be extended until the date on which the termination of coverage takes effect, and the employer is obligated for premiums due for that period.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 9.49(a), eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 3.026, eff. September 1, 2005.
Acts 2017, 85th Leg., R.S., Ch. 467 (H.B. 2112), Sec. 2, eff. June 9, 2017.

Source: Section 406.007 — Termination of Coverage by Employer; Notice, https://statutes.­capitol.­texas.­gov/Docs/LA/htm/LA.­406.­htm#406.­007 (accessed May 26, 2025).

406.001
Definition 406.002
Coverage Generally Elective 406.003
Methods of Obtaining Coverage 406.004
Employer Notice to Division 406.005
Employer Notice to Employees 406.006
Insurance Coverage and Claim Administration Reporting Requirements 406.007
Termination of Coverage by Employer 406.008
Cancellation or Nonrenewal of Coverage by Insurance Company 406.009
Collecting and Maintaining Information 406.010
Claims Service 406.011
Austin Representative 406.012
Enforcement of Subchapter 406.031
Liability for Compensation 406.032
Exceptions 406.033
Common-law Defenses 406.034
Employee Election 406.035
Waiver of Compensation Prohibited 406.051
Security by Commercial Insurance 406.052
Effect of Other Insurance Coverage 406.053
All States Coverage 406.071
Extraterritorial Coverage 406.072
Principal Location 406.073
Agreement on Principal Location 406.074
Interjurisdictional Agreements 406.075
Effect of Compensation Paid in Other Jurisdiction 406.091
Exempt Employees 406.092
Alien Employees and Beneficiaries 406.093
Legally Incompetent Employees 406.094
Certain Persons Licensed by Texas Real Estate Commission 406.095
Certain Professional Athletes 406.096
Required Coverage for Certain Building or Construction Contractors 406.097
Executive Employees of Certain Business Entities 406.098
Volunteer Emergency Service Members and Personnel 406.121
Definitions 406.122
Status as Employee 406.123
Election to Provide Coverage 406.124
Cause of Action 406.125
Restriction of Unsafe Work Practices Unaffected 406.126
Exemption 406.127
Effect of Certain Contracts of Hire 406.141
Definitions 406.142
Application 406.143
Provision of Workers’ Compensation Insurance 406.144
Election to Provide Coverage 406.145
Joint Agreement 406.146
Wrongful Inducement Prohibited 406.161
Definitions 406.162
Scope 406.163
Liability of Labor Agent 406.164
Elective Coverage of Employer and Family Members 406.165
Not Applicable to Independent Contractors
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 406.007. Termination of Coverage by Employer; Notice's source at texas​.gov