Tex. Labor Code Section 407A.457
Trust Fund; Schedule

(a)

Each group shall contribute an amount, based on the total amount of income benefit payments made in this state for the preceding reported calendar year, to create, over a period of 10 years beginning January 1, 2006, a trust fund of at least $1 million for:

(1)

the emergency payment of the compensation liabilities of an insolvent group; and

(2)

the administrative expenses of the guaranty fund.

(b)

The board may adopt provisions in the plan of operation that provide for the indexing of the amount of the trust fund to a risk analysis.

(c)

At least annually, the board shall adopt a year-by-year schedule of assessments to meet the funding goal of the trust fund.

(d)

The board may:

(1)

defer assessments if the fund equals or exceeds $2 million; and

(2)

allow the trust fund to accrete based on its investment earnings.

(e)

The contribution required for the first year after a group is issued a certificate of approval under this chapter shall be based on the group’s estimated income benefit payments for the group’s first year of operation.

(f)

Each group certified under this chapter shall make contributions under this section to the trust fund, and the board shall provide a mechanism in the plan of operation to ensure that all groups contribute equitably to the trust fund.

(g)

The board shall administer the trust fund in accordance with the plan of operation adopted by the board and approved by the commissioner.
Added by Acts 2005, 79th Leg., Ch. 1055 (H.B. 1353), Sec. 1, eff. September 1, 2005.

Source: Section 407A.457 — Trust Fund; Schedule, https://statutes.­capitol.­texas.­gov/Docs/LA/htm/LA.­407A.­htm#407A.­457 (accessed Jun. 5, 2024).

407A.001
Definitions 407A.002
Application of Chapter 407A.003
Merger of Groups 407A.004
Group Not Insurer 407A.005
Certificate of Approval Required 407A.006
Service of Process 407A.007
Hearings 407A.008
Rules 407A.009
Certificate of Authority Required for Certain Administrators and Service Companies 407A.051
Application for Initial Certificate of Approval 407A.052
Issuance of Certificate of Approval 407A.053
Financial Requirements 407A.054
Excess Insurance Requirements 407A.055
Premium Requirements 407A.056
Indemnity Agreement Requirements 407A.057
Additional Performance Bond Requirements 407A.101
Certificate of Approval 407A.151
Board Membership 407A.152
Board General Powers and Duties 407A.153
Prohibited Activities 407A.154
Group Funds 407A.201
Admission of Employer as Member 407A.251
Financial Statement 407A.252
Examination 407A.301
Maintenance Tax for Division and Research Functions of Department 407A.302
Maintenance Tax for Department 407A.303
Collection and Payment of Taxes 407A.304
Premium Tax 407A.351
Rates 407A.352
Audits 407A.353
Refunds 407A.354
Premium Payment Plan 407A.355
Deficits 407A.401
Prohibited Solicitation 407A.402
Fines 407A.403
Cease and Desist Orders 407A.404
Revocation of Certificate of Approval 407A.451
Definitions 407A.452
Guaranty Fund 407A.453
Board of Directors 407A.454
Immunity 407A.455
Board General Powers and Duties 407A.456
Plan of Operation 407A.457
Trust Fund 407A.458
Effect of Insolvency of Group 407A.459
Collection of Assessments from Group Members 407A.460
Payment of Benefits Through Guaranty Fund 407A.461
Possession of Security by Guaranty Fund 407A.462
Release of Claim Information to Guaranty Fund 407A.463
Guaranty Fund as Party in Interest 407A.464
Preferences 407A.465
Special Fund
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Accessed:
Jun. 5, 2024

§ 407A.457’s source at texas​.gov