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You are here: Home . bulletins . 2013 . cc5

COMMISSIONER'S BULLETIN # B-0006-13

March 19, 2013


To: ALL INSURANCE COMPANIES, CORPORATIONS, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS LICENSED TO WRITE FIRE AND ALLIED LINES, MULTIPLE PERIL CROP, FARMOWNERS MULTIPLE PERIL, HOMEOWNERS MULTIPLE PERIL, COMMERCIAL MULTIPLE PERIL, INLAND MARINE, MEDICAL MALPRACTICE, OTHER GENERAL LIABILITY, PRODUCTS LIABILITY, PRIVATE PASSENGER AUTOMOBILE, COMMERCIAL AUTOMOBILE, FIDELITY, AND SURETY IN THE STATE OF TEXAS


Re: TEXAS DISALLOWED EXPENSE CALL FOR CALENDAR YEAR 2012 EXPERIENCE

The Texas Department of Insurance issues the attached mandatory call to all companies writing property, residential, medical malpractice, other general liability, products liability, fidelity, surety, and automobile insurance in Texas. The purpose of this call is to collect information relating to disallowed expenses.

Section 2251.052 of the Texas Insurance Code prohibits considering disallowed expenses when determining individual company rates for lines of insurance regulated under TIC Chapter 2251. This call is designed to provide quantification of such "disallowed" expenses as defined under TIC §2251.002. Note that 28 TAC §5.9331(b)(1) provides that for filings made in accordance with TIC Chapter 2251, the following are no longer considered disallowed expenses: payments to advisory organizations licensed to do business in Texas for services authorized by Subchapter B, the development of statistical plans under TIC Chapter 1805, data collection and reporting, the development and distribution of prospective loss costs, supplementary rating information, policy forms and endorsements, research, the performance of inspections, and other reasonably related activities.

You must complete and return this call in accordance with the general instructions no later than April 19, 2013. Underlying data, individual source documents, and any other information used to develop your call response must be maintained in your records for a minimum of two years from the date of your submission to the department.

Reporting instructions, forms, and the affidavit can be found on the department's website at http://www.tdi.texas.gov/bulletins/index.html.

Submissions:

Upon completion of the form, please save the Excel file using the following naming standard:

For group filings, enter the file name as: GRP# DER2012.xls. For example: "GRP 1234 DER2012.xls." For individual company filings, enter the group number as "0" followed by the five-digit NAIC company number. For example: "GRP 0 12345 DER2012.xls." Please email the Excel file to datacall@tdi.texas.gov using the Excel file name as the subject, and fax the signed and notarized affidavit to 512-463-6122.

Failure to comply with the requirements of this call within the time limits specified may constitute a violation of the Texas Insurance Code, and may subject the insurer to the penalties provided by law.

Questions concerning this call should be directed to Kate Thompson in Data Services at 512-475-1878.

Gary Gola

Property and Casualty - Data Services

Forms and Instructions



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Last updated: 09/16/2014

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