Texas Nonsubscription

Texas is unique among the states in allowing employers to not participate (be nonsubscribers) in the Workers Compensation system. Legal authority for this employer option resides in the original Workmen's Compensation act passed in 1913. That language remains unchanged and is the basis for today's nonsubscription products. The act provides that if an employer elects to participate in nonsubscription, he must give up certain common law defenses to suits for negligence. These certain defenses are not germane in today's legal climate and the loss of these defenses does nothing to remove the burden of proof from the employee as to the employee's injury being incurred during the course and scope of employment and as to the injury being due to the negligence of the employer.

Combined Independent Agencies (CIA) has long been the recognized leader in nonsubscription providing insurance products and support services to those employers electing to become non-subscribers for their Texas employee injury exposure. These products and services provide indemnity for an employer's expenses under an ERISA employee welfare plan designed to provide maximum employer control of claims cost, administration, and choice of medical and service providers. Subject to a binding arbitration provision, these nonsubscription policies also provide defense and legal liability expense coverage for suits in Federal court for ERISA benefits and in State court.