# 28 Tex. Admin. Code § 13.511: 28 TAC § 13.511. Regulated PEOs; Approval Required, DIVISION 1. PURPOSE AND DEFINITIONS

> Texas · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T28_P1_C13_S13_511

## Section

- **Citation:** 28 Tex. Admin. Code § 13.511
- **Heading:** 28 TAC § 13.511. Regulated PEOs; Approval Required, DIVISION 1. PURPOSE AND DEFINITIONS
- **Jurisdiction:** Texas
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Texas Administrative Code / Title 28 INSURANCE / Part 1 TEXAS DEPARTMENT OF INSURANCE / Chapter 13 MISCELLANEOUS INSURERS AND OTHER REGULATED ENTITIES / 28 TAC § 13.511

## Text

(a) PEOs subject to this subchapter. This subchapter
 applies to a PEO sponsoring a self-funded employee health benefit
 plan if:
(1) its primary business location is in this state;
 or
(2) a majority of the eligible employees of at least
 one of its clients are employed in this state; or
(3) the primary business location of at least one of
 its clients is in this state, where no other state contains a majority
 of that employer's eligible employees.
(b) PEOs not subject to this subchapter. This subchapter
 does not apply to a PEO sponsoring an employee health benefit plan
 that consists only of benefits provided through a group insurance
 policy or evidence of coverage that guarantees the payment of claims
 for all eligible benefits issued by a carrier authorized to do business
 in this state.
(c) License and certificate of approval required. A
 PEO to which this subchapter applies may not offer a self-funded employee
 health benefit plan unless the PEO is:
(1) licensed and in good standing with TDLR; and
(2) has a certificate of approval from TDI issued under
 this subchapter.
(d) Insurance Code Chapter 846. Insurance Code Chapter
 846, concerning Multiple Employer Welfare Arrangements, does not apply
 to a plan sponsored by a PEO unless:
(1) a PEO that does not have a certificate of approval
 to sponsor a PEO plan under this subchapter performs activities that
 require a certificate of authority under Chapter 846; or
(2) an approved PEO files a withdrawal plan that is
 approved by the commissioner, and relinquishes its certificate of
 approval as a PEO plan sponsor under this subchapter.

## Nearby sections

- [28 Tex. Admin. Code § 13.510 28 TAC § 13.510. Purpose, DIVISION 1. PURPOSE AND DEFINITIONS](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T28_P1_C13_S13_510.md)
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- [28 Tex. Admin. Code § 13.534 28 TAC § 13.534. Application Review, Approval, and Denial, DIVISION 3. CERTIFICATE OF APPROVAL](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T28_P1_C13_S13_534.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T28_P1_C13_S13_511. Check the current official text before relying on it. Not legal advice.