SECTION 13.562. Deposit or Letter of Credit Required

(a) Initial deposit or letter of credit. Before receiving a certificate of approval, a PEO applying for a certificate of approval must establish a deposit of at least 25 percent of the attachment point of the aggregate limit included in the plan's stop-loss insurance agreement or establish a letter of credit for that amount.

(b) Proof of deposit. The commissioner adopts by reference both Statutory Deposit Transaction Form, Form No. FIN407 (rev.1115), and Declaration of Trust Form, Form No. FIN453 (rev.1115). Both forms are available on TDI's website. An applicant must give proof of its deposit on both TDI's Statutory Deposit Transaction Form and TDI's Declaration of Trust Form.

(c) Continuing deposit or letter of credit. An approved PEO sponsoring a plan must maintain a deposit or letter of credit of at least 25 percent of the attachment point of the aggregate limit included in the plan's stop-loss insurance agreement.

(d) Deposit to be held for TDI's control. Any deposit must be held for TDI's control and may not be withdrawn or substituted without the commissioner's approval.

Source Note: The provisions of this §13.562 adopted to be effective May 17, 2016, 41 TexReg 3479