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You are here: Home . bulletins . 2015 . b-0005-15

COMMISSIONER'S BULLETIN # B-0005-15

March 09, 2015


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: REVISED WORKERS’ COMPENSATION CLASSIFICATION RELATIVITIES—INSTRUCTIONS ON MAKING RATE FILINGS

The commissioner of insurance issued Commissioner’s Order No. 3848, dated March 5, 2015, adopting revised Texas workers’ compensation classification relativities.  The order decreased the classification relativities an average of 5 percent overall from the June 1, 2013, level.  The change for any given classification is between +19 percent and -29 percent.

 

For workers’ compensation policies with effective dates on or after July 1, 2015, the order requires each workers’ compensation insurer to adopt the revised classification relativities unless

  • the insurer files to use its own independent insurer-specific classification relativities, or
  • the insurer files to use the National Council on Compensation Insurance (NCCI) loss costs effective on July 1, 2015.  NCCI’s loss costs are available for insurers to use as an alternative rate basis to the classification relativities. 

Insurers may use the revised classification relativities before July 1, 2015, if they submit a filing to the Texas Department of Insurance thirty days before the selected effective date.

 

Insurers may not use the June 1, 2013, classification relativities or the June 1, 2014, NCCI loss costs as the basis of their rates for policies with effective dates on or after July 1, 2015.

 

Actions Required of Insurers

 

Texas 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 this state.

 

Insurers currently writing workers’ compensation insurance that plan to continue writing that coverage on or after July 1, 2015, must submit the following no later than June 1, 2015:

  • Notice of Carrier Intent and Certification (CI), and
  • A rate filing supporting its proposed deviation if the insurer intends to base its rates on the revised classification relativities or its own independent insurer-specific classification relativities, or its proposed loss cost multiplier if it intends to base its rates on the NCCI advisory loss costs.  See the “Summary of Actions Required by Insurers” exhibit for more details.

Insurers’ rate filings should use the most recently available data and information.  It is not generally sufficient to refer to the filing the insurer made in response to Commissioner’s Bulletin No. B-0015-14.

 

An insurer that is not currently writing workers’ compensation insurance but plans to write its first policy with an effective date on or after July 1, 2015, must send its CI and rate filing to TDI before the effective date of its first policy.

Filing Forms and Exhibits

 

The Property and Casualty Filings Made Easy Guide on the TDI website at www.tdi.texas.gov/pubs/pc/rspceasy.html specifies rate filing requirements.  Insurers may provide the required information using the exhibits in the Filings Made Easy Guide, or their own forms and formats. 

 

On November 16, 2014, TDI adopted new rules outlining new filing requirements for property and casualty insurers.  The rules are published in Title 28, Texas Administrative Code, Part 1, Chapter 5, Subchapter M.  Section 5.9334(f) addresses the requirements for every rate filing submission.  Each of these requirements (along with other categories of information that may be requested) is described in detail in §5.9332 (Categories of Supporting Information).

 

This bulletin and the documents listed below are located on TDI’s website at www.tdi.texas.gov/bulletins/index.html. 

 

Summary of Actions Required by Insurers

Notice of Carrier Intent and Certification (CI)

Exhibit A:  Revised Classification Relativities

 

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

Property and Casualty Intake

Mail Code 104-3B

P.O. Box 149104

Austin, TX 78714-9104

Texas Department of Insurance

Property and Casualty Intake (MC 104-3B)

Tower 1, Room 103

333 Guadalupe Street

Austin, TX 78701

TDI Contact

 

For further information, or if you have questions concerning this bulletin, please contact Nicole Elliott in the Property and Casualty Actuarial Office by phone at 512-676-6703 or by email at nicole.elliott@tdi.texas.gov.

J’ne Byckovski
Chief Actuary
Property and Casualty Actuarial Office
 

Attachments

Summary of Actions Required by Insurers
Notice of Carrier Intent and Certification (CI)
Exhibit A:  Revised Classification Relativities



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Last updated: 03/25/2015

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