Section 37.404 - Liability Requirements for Sudden and Nonsudden Accidental Occurrences(a) An owner or operator shall establish liability coverage for bodily injury and property damage to third parties caused by sudden or nonsudden accidental occurrences arising from operations of the facility or group of facilities. The owner or operator shall have and maintain liability coverage for sudden or nonsudden accidental occurrences, exclusive of legal defense costs. The owner or operator shall choose from one or more mechanisms as specified in Subchapter F of this chapter (relating to Financial Assurance Mechanisms for Liability) to meet the liability requirements for sudden or nonsudden accidental occurrences.(b) An owner or operator shall notify the executive director in writing within 30 days whenever: (1) a claim results in a reduction in the amount of financial assurance for liability coverage provided by a financial assurance mechanism authorized in Subchapter F of this chapter; or(2) a Certification of Valid Claim for bodily injury or property damage caused by a sudden or nonsudden accidental occurrence arising from the operation of a facility is entered between the owner or operator and third-party claimant for liability coverage under Subchapter F of this chapter; or(3) a final court order establishing a judgment for bodily injury or property damage caused by a sudden or nonsudden accidental occurrence arising from the operation of a facility is issued against the owner or operator, or a financial assurance mechanism that is providing financial assurance for liability coverage under Subchapter F of this chapter.30 Tex. Admin. Code § 37.404
The provisions of this §37.404 adopted to be effective March 21, 2000, 25 TexReg 2347