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You are here: Home . bulletins . 2015 . b-0006-15

COMMISSIONER'S BULLETIN # B-0006-15

March 27, 2015


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 2014 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 “disallowed” expenses, as defined under §2251.002.  28 Texas Administrative Code §5.9331(b)(1) provides that, for filings made in accord with Texas 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 27, 2015.  You must maintain in your records, for a minimum of two years following your submission to TDI, all underlying data, individual source documents, and any other information used to develop your data call response.

Reporting instructions, forms, and the Affidavit are on TDI’s website at http://www.tdi.texas.gov/bulletins/index.html.

Submissions:

On completion of the Excel-based form, please save the file using the following naming standard:

For group filings, enter the file name as:  GRP# DER2014.xls.  For example, “GRP 1234 DER2014.xls.” 

For individual company filings, enter the group number as “0” followed by the five-digit NAIC company number.  For example, “GRP 0 12345 DER2014.xls.” 

Please email the Excel file, using the Excel file name in the subject line, and an electronic copy of 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 be a violation of the Insurance Code, and subject the insurer to the applicable penalties provided by law.

Questions concerning this data call should be directed to Kate Thompson or Salina Perez in Data Services at 512-676-6690.

Iris Saenz
Property and Casualty Section - Data Services

Excel Form, Affidavit and Instructions



For more information contact:

Last updated: 03/27/2015

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