SECTION 72.24. Approval of Assurance Organization

(a) An applicant or license holder may enter into an agreement with a commission-approved assurance organization to act on behalf of an applicant or license holder in accomplishing the provisions of this chapter and the Code.

(b) The authorization of an assurance organization to act on its behalf does not relieve an applicant or license holder from the applicant or license holder's ultimate responsibility to comply with each of its obligations pursuant to this chapter and the Code.

(c) An assurance organization desiring to become approved by the commission shall submit to the department:

(1) a letter requesting approval by the commission;

(2) evidence that the assurance organization meets the qualifications set forth in Texas Labor Code, §91.001(2-a); and

(3) an explanation of how the assurance organization will certify each of the criteria and obligations required of applicants and license holders in this chapter and the Code.

(d) No later than 30 days after the assurance organization submits all of the required information to the department, the department shall notify the assurance organization in writing whether or not the assurance organization has been approved.

(e) If the department recommends not approving the assurance organization, it shall detail the deficiencies in the writing referenced in §72.24(d). The assurance organization may correct the deficiencies.

(f) The assurance organization's approval shall remain in effect until such time as either the department, after written notice, terminates the approval, or until such time as the assurance organization, after written notice, withdraws or terminates its status as a commission-approved assurance organization.

(g) For so long as the assurance organization is approved, the assurance organization shall notify the department annually, in writing, on the anniversary of its approval date, whether any of its standards of accreditation have changed during the previous year.

(h) The department shall make available to the public a current list of all commission-approved assurance organizations.

(i) The department shall notify the assurance organization in writing if the department becomes aware of information which indicates that the assurance organization is failing to adequately monitor or provide compliance assistance as intended by the Code and this chapter. The department shall include such deficiencies in its written notification.

(j) The assurance organization shall respond to the department within 30 days of its receipt of the notification in §72.24(h), and both shall attempt to resolve the matters of concern. If the matters are not resolved within a reasonable time, the department may elect to recommend that the assurance organization's approval be terminated.

(k) If the assurance organization desires to withdraw or terminate its status as an approved assurance organization in Texas, it shall give the department not less than 60 days written notification of said intent, and shall agree to cooperate with the department and any license holders or applicants that have an agreement with the assurance organization in the termination process.

(l) In all matters concerning the relationship between the commission and either a commission-approved assurance organization, or an assurance organization desiring to become approved, including disputed matters, the decision of the executive director shall be binding on all parties.

Source Note: The provisions of this §72.24 adopted to be effective September 1, 2010, 35 TexReg 7784