Texas Labor Codes 5.76-4

code, refuse to insure any risk that tenders the necessary premium and any applicable accident prevention service fees.

(b) If an applicant to the company would be rejected for workers' compensation insurance under the company's underwriting standards, the risk may not be rejected, but shall be insured at a higher premium as provided by the company's requirements. The risk may be required to meet other conditions considered necessary to protect the company's interests.

(c) The company shall develop statistical and other information as necessary to allow the company to distinguish between its writings in the voluntary market and its writings as the insurer of last resort.

(d) The company shall decline to insure any risk if insuring that risk would cause the company to exceed the premium-to-surplus ratios established by Article 5.76-3 of this code or if the risk is not in good faith entitled to insurance through the company. For purposes of this subsection only, "good faith" means honesty in fact in any conduct or transaction.

(e) The department shall develop and publish classification relativities specifically designed for the risks insured under this article.

(f) The company and the Texas workers' compensation insurance facility may exchange information relating to actual or suspected fraud by any applicant, policyholder, claimant, agent, or insurer with respect to workers' compensation insurance policies issued by, or applications for coverage submitted to, the facility or the company. That information may be kept confidential and is not subject to disclosure under the open records act, Chapter 424, Acts of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes).

(g) If the company suspects fraud or identifies conditions that may result in acts of fraud, the company may require an applicant for workers' compensation insurance coverage who is identified as a risk for purposes of Subsection (b) of this article to insure all business entities that are commonly owned or commonly controlled by the applicant.

(h) The company shall report the statistical and other information developed under Subsection (c) of this article on request to the Research and Oversight Council on Workers' Compensation, or to any successor entity for research and oversight of the workers' compensation system of this state.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 12, Sec. 18.18, eff. Jan. 1, 1994. Subsec. (d) amended by Acts 1993, 73rd Leg., ch. 685, Sec. 15.03, eff. Sept. 1, 1993; Subsec. (f) added by Acts 1993, 73rd Leg., ch. 885, Sec. 7, eff. Jan. 1, 1994; Subsecs. (g), (h) added by Acts 1995, 74th Leg., ch. 94, Sec. 16, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 1195, Sec. 2.01, eff. Sept. 1, 2001.