Tex. Labor Code Section 406.008
Cancellation or Nonrenewal of Coverage by Insurance Company; Notice


(a)

An insurance company that cancels a policy of workers’ compensation insurance or that does not renew the policy by the anniversary date of the policy shall deliver notice of the cancellation or nonrenewal to the division, and by certified mail, in person, or by electronic means in accordance with Chapter 35 (Electronic Transactions), Insurance Code, to the employer, not later than:

(1)

the 30th day before the date on which the cancellation or nonrenewal takes effect; or

(2)

the 10th day before the date on which the cancellation or nonrenewal takes effect if the insurance company cancels or does not renew because of:

(A)

fraud in obtaining coverage;

(B)

misrepresentation of the amount of payroll for purposes of premium calculation;

(C)

failure to pay a premium when due;

(D)

an increase in the hazard for which the employer seeks coverage that results from an act or omission of the employer and that would produce an increase in the rate, including an increase because of a failure to comply with:
(i)
reasonable recommendations for loss control; or
(ii)
recommendations designed to reduce a hazard under the employer’s control within a reasonable period; or

(E)

a determination made by the commissioner of insurance that the continuation of the policy would place the insurer in violation of the law or would be hazardous to the interest of subscribers, creditors, or the general public.

(b)

The notice required under this section shall be filed with the division.

(c)

Failure of the insurance company to give notice as required by this section extends the policy until the date on which the required notice is provided to the employer and the division.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 9.50(a), eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 3.027, eff. September 1, 2005.
Acts 2017, 85th Leg., R.S., Ch. 467 (H.B. 2112), Sec. 3, eff. June 9, 2017.

Source: Section 406.008 — Cancellation or Nonrenewal of Coverage by Insurance Company; Notice, https://statutes.­capitol.­texas.­gov/Docs/LA/htm/LA.­406.­htm#406.­008 (accessed Mar. 23, 2024).

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

Accessed:
Mar. 23, 2024

§ 406.008’s source at texas​.gov