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COMMISSIONER'S BULLETIN # B-0018-14

July 30, 2014


To: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE IN THE STATE OF TEXAS, THEIR AGENTS AND REPRESENTATIVES, AND THE PUBLIC GENERALLY


Re: ADOPTION OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE STATISTICAL PLAN FOR WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE WITH TEXAS EXCEPTIONS

The commissioner of insurance issued Commissioner's Order No. 3455, dated July 29, 2014, adopting the National Council on Compensation Insurance (NCCI) Statistical Plan for Workers Compensation and Employers Liability Insurance with Texas exceptions, as proposed by the May 30, 2014, TDI staff petition (Reference No. W-0514-03-I), with no amendments. Carriers do not have to make a filing with TDI to use the NCCI Stat Plan with Texas exceptions.

The commissioner determined that adopting the NCCI Stat Plan with Texas exceptions is necessary to continue the process of Texas becoming an NCCI state for workers' compensation purposes; help align workers' compensation statistical data reporting requirements between Texas and other NCCI states; and replace the outdated Texas Workers' Compensation Statistical Plan (Texas Stat Plan) with a plan that provides more detailed information, particularly with regard to workers' compensation losses.

In addition to requiring more detailed information, particularly with regard to losses, there are several new requirements in the NCCI Stat Plan with Texas exceptions that are not part of the current Texas Stat Plan. The main differences between the NCCI Stat Plan and the Texas Stat Plan reporting requirements pertain to:

• electronic filing of statistical data
• fraudulent claims
• noncompensable claims
• accidents with one claimant and reportable losses under both workers' compensation and employers' liability
• deductible options and deductible credits
• the number of subsequent reports required for updating losses
• Nonextraordinary Loss Events
• Extraordinary Loss Events
• updated pension tables to use in setting case reserves of incurred indemnity amounts for certain workers' compensation claims
• an expanded list of fees and expenses included as part of the Allocated Loss Adjustment Expense and the Unallocated Loss Adjustment Expense, and identification of whether a claim was administered by a workers' compensation certified health care network.

Many carriers are already complying with the expanded reporting requirements, rather than submitting only the minimum information that the Texas Stat Plan requires. The carriers reporting in the expanded format in the NCCI Stat Plan would continue to report in that format after the commissioner adopts the NCCI Stat Plan with the Texas exceptions. The main differences listed above may require carriers to report additional data or to report data in a different way. Carriers have the option of entering the unit reports using NCCI's online system, which is available at no cost to the carrier. Carriers choosing this method avoid system changes and the associated costs.

The order specifies that the Texas Stat Plan will remain in effect for reporting statistical data only for Texas workers' compensation policies with an effective date before 12:01 a.m. on January 1, 2015. All carriers are required to use the NCCI Stat Plan with Texas exceptions for reporting statistical data for all Texas workers' compensation policies with an effective date on or after 12:01 a.m., January 1, 2015.

Finally, the order states that, as provided in Commissioner's Order No. 3142, dated March 21, 2014, the commissioner will consider any proposed future revisions to NCCI's manuals, including the NCCI Stat Plan with Texas exceptions, under either the procedure established in Insurance Code Article 5.96 or the following procedure: 1) NCCI makes a filing; 2) TDI publishes notice of the filing on the TDI website and distributes notice of the filing to subscribers to TDI's electronic newsletters, with at least a 30-day period for interested persons to submit comments or request a hearing; and 3) the commissioner issues an order approving the filing, approving the filing with changes, or rejecting the filing.

Commissioner's Order No. 3455 is effective on July 29, 2014, which is 15 days after the notice of adoption of the NCCI Stat Plan with Texas exceptions will be published in the Texas Register. Click on the link below to review the order in its entirety.

Contact me at 512-322-3459 or by email at nancy.moore@tdi.texas.gov if you have any questions.

Nancy Moore
WC Classification and Premium Calculation Team

Attachment: Commissioner's Order No. 3455



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Last updated: 09/28/2015

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