§ 127A.003.Disclosure Requirements for Ongoing Insurance Policy

A practical relief provision, and it is available only on stated conditions.

A placement service whose disclosure states that an insurance policy provided for the subcontractor’s benefit remains in effect for a specified time period and with respect to a specified client or clients need not give a further disclosure for future services provided to that client or those clients.

The relief is earned by what the first disclosure said. A disclosure that named a period and named the clients supports the exemption; one that described a policy without specifying either does not.

That places the burden where it belongs. A service that wants to avoid repeating the exercise must state the durable facts up front.

The exemption is client-specific. Placing the same subcontractor with a different client requires a fresh disclosure, because the indemnity obligations and the insurance may differ entirely.

Two events end the exemption. The policy is no longer in effect, or the service is required to give a new disclosure because of a change concerning the policy under the following section.

The first is self-executing. Expiry ends the exemption whether or not anyone notices, so the service must track its own policy periods.

The second connects to the notice provision, which requires 30 days’ warning of cancellation, nonrenewal, or a material reduction in coverage.

Read together the three sections form a cycle: disclose before the first placement, stay silent while the disclosed facts hold, and disclose again when they change.