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COMMISSIONER'S BULLETIN # B-0005-14

March 18, 2014


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 DATA CALL FOR CALENDAR YEAR 2013 EXPERIENCE

The Texas Department of Insurance issues the attached mandatory data 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 data call is to collect information relating to disallowed expenses.

Texas Insurance Code §2251.003 identifies which insurers must submit this information. Section 2251.052 prohibits considering disallowed expenses when determining individual company rates for lines of insurance regulated under Insurance Code Chapter 2251. This data call is designed to provide quantification of such "disallowed" expenses as defined under §2251.002. Note that 28 Texas Administrative Code §5.9331(b)(1) provides that, for filings made in accord with Insurance Code 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 Insurance Code 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 data call in compliance with the general instructions no later than April 18, 2014. You must maintain in your records, for a minimum of two years following your submission to the department, all underlying data, individual source documents, and any other information used to develop your data call response.


Reporting instructions, forms, and the Affidavit can be found on the department's website at 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# DER2013.xls. For example, "GRP 1234 DER2013.xls."

For individual company filings, enter the group number as "0" followed by the five-digit NAIC company number. For example, "GRP 0 12345 DER2013.xls."

Please email the Excel file using the Excel file name as the email subject and the signed and notarized affidavit to datacall@tdi.texas.gov.

Failure to comply with the requirements of this data 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 data call should be directed to Kate Thompson in Data Services at 512-475-1878.

C. H. Mah

Property and Casualty Section

Forms



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Last updated: 09/28/2015

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