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You are here: Home . bulletins . 1998 . b-0017-8
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COMMISSIONER'S BULLETIN # B-0017-98

February 23, 1998


To:


Re: Texas Disallowed Expense Call; Request to all companies writing property, residential and automobile insurance in Texas to submit information relating to disallowed expenses due no later than April 1, 1998

Texas Disallowed Expense Call

Pursuant to the authority of Article 1.24, of the Texas Insurance Code (TIC), the department requests all companies writing property, residential and automobile insurance in Texas to submit information relating to disallowed expenses on the attached forms.

Article 5.101, Sec. 3, of the TIC, prohibits the consideration of certain incurred expenses in the determination of benchmark and individual company rates for lines of insurance regulated under the flexible rating program. This call is designed to provide quantification of such "disallowed" expenses on a countrywide basis.

This call must be completed and returned in accordance with the instructions by no later than April 1, 1998. Underlying data, individual source documents and other information utilized in the development of your call response must be maintained in your records for a minimum of two years after April 1, 1998.

Failure to comply with the requirements of this call within the time limits specified shall constitute a violation or violations of the TIC and shall subject the insurer to the penalties provided by law.

Questions concerning this call should be directed to Julie Jones at the Texas Department of Insurance at 512/475-3027.

Sincerely,

Clare Pramuk, Director

Data Services Division

Mail Code 105-5D

Enclosures

CP/JJ


Texas Disallowed Expense Call

Instructions:

1. Companies with direct written premiums in Texas in 1997 in one or more of the following lines must complete the Report of Insurance Expense Exhibit Data for the written lines and for all property and casualty lines combined:

  • Residential Fire
  • Residential Allied Lines
  • Farmowners Multiple Peril
  • Homeowners Multiple Peril
  • Private Passenger Automobile
  • Commercial Automobile

In addition, the Transmittal form and Affidavit must be completed.

2. Companies having no Texas direct written premium in 1997 in any of the above lines may satisfy the call by completing and returning the Transmittal Form with a "NONE" and affidavit.

3. Companies filing as a group must list names and NAIC numbers on the transmittal and acknowledgment forms.

4. This call requires the reporting of countrywide experience.

5. Report all amounts to the nearest thousand as they are reported in the Insurance Expense Exhibit.

6. The highest ranking company official must sign the affidavit with management and control authority over the development of the reported information. The affidavit must be notarized.

7. Underlying data and other information utilized in the development of your call response must be maintained in your records for a minimum of two years after April 1, 1998.

8. Return Acknowledgment form by March 6, 1998, by mail or fax.

9. If a TDI acknowledgment of receipt is desired, include a stamped, self addressed envelope.

10. Questions regarding this call should be directed to Julie Jones at the Texas Department of Insurance at 512/475-3027.

11. The completed call forms and affidavit must be returned on or before April 1, 1998 to:

Send Calls to:

Julie Jones

Texas Department of Insurance

Data Services (MC 105-5D)

PO. Box 149096

Austin, Texas 78714-9096

Fax Number: (512)-463-6122



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