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You are here: Home . bulletins . 2014 . cc3

COMMISSIONER'S BULLETIN # B-0004-14

February 26, 2014


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


Re: REVISED NCCI ADVISORY LOSS COSTS BY CLASSIFICATION FOR WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE INSTRUCTIONS ON MAKING RATE FILINGS

The Texas Department of Insurance accepts the National Council on Compensation Insurance (NCCI) advisory loss cost filing with an effective date of June 1, 2014. Insurers may use NCCI's advisory loss costs as an alternative to the classification relativities. Insurers planning to adopt the June 1, 2014, advisory loss costs must comply with the requirements in the attached Summary of Actions Required by Insurers.

Additionally, TDI will not amend the June 1, 2013, workers' compensation classification relativities or the June 1, 2013, experience rating values, which are used in calculating workers' compensation experience modifiers.

For all workers' compensation policies written with an effective date on or after June 1, 2014, each workers' compensation insurer must use the June 1, 2013, classification relativities, its own independent insurer-specific classification relativities, or the June 1, 2014, NCCI loss costs. Insurers may not base their rates on the June 1, 2013, NCCI loss costs for policies with an effective date on or after June 1, 2014.

Insurers must continue to use the expected loss rates and discount ratios adopted by Commissioner's Order No. 2312 to calculate experience modifiers with an effective date on or after June 1, 2013.

Required Actions

Insurance Code Section 2053.003 requires each insurer to file with TDI all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in Texas. Insurers must submit the required documents as outlined in the Summary of Actions Required by Insurers no later than May 1, 2014.

Insurers that elect to continue using the June 1, 2013, TDI classification relativities with their existing and previously filed deviations may do so without submitting a filing. An insurer that is not currently writing workers' compensation insurance must complete and submit a filing and the attached Notice of Carrier Intent and Certification to TDI before the effective date of its first policy.

Insurers that fail to comply with the filing requirements in this bulletin may be subject to regulatory action.

Filing Forms and Exhibits

The Property and Casualty Filings Made Easy Guide on the TDI website at http://www.tdi.texas.gov/pubs/pc/rspceasy.html, specifies filing requirements. Insurers may provide the required information using the transmittal form and filing exhibits in the Filings Made Easy Guide, or their own forms and formats. Rate filings must include transmittal information, supplementary rating information, and pertinent supporting information for proposed changes in a company's deviation, loss cost multiplier, or other rating factors.


You may download this bulletin, the Summary of Actions Required by Insurers, and the Notice of Carrier Intent and Certification from the TDI website at www.tdi.texas.gov/bulletins/index.html.

You may also request copies by contacting the Property and Casualty Actuarial Office by phone at 512-475-3017 or by email at pcactuarial@tdi.texas.gov.

Where to Send Filings

Submit filings by SERFF, or mail or deliver to Property and Casualty Intake at the appropriate address:

Mail to:

Deliver to:

Texas Department of Insurance

Texas Department of Insurance

Property and Casualty Intake

Property and Casualty Intake (MC 104-3B)

Mail Code 104-3B

Tower 1, Room 103

P.O. Box 149104

333 Guadalupe Street

Austin, TX 78714-9104

Austin, TX 78701

TDI Contact

For further information or questions concerning this bulletin, please contact the Property and Casualty Actuarial Office by phone at 512-475-3017 or by email at pcactuarial@tdi.texas.gov.


J'ne Byckovski
Chief Actuary
Property and Casualty Actuarial Office

Attachments: Notice of Carrier Intent and Certification

Summary of Actions Required by Insurers



Last updated: 09/07/2014

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