Senate Bill 224, 88th Legislature, 2023, made changes to the Motor Vehicle Crime Prevention Authority (MVCPA) fee. By law, insurers must pay a fee to the MVCPA. TDI's rule (Title 28 Texas Administrative Code §5.205) allows—but does not require—insurers to recoup all or part of that fee from policyholders.
SB 224 increases the fee from $4 to $5 per motor vehicle each year, effective for fees due on or after the effective date of the bill (May 29, 2023). Insurance policies issued, delivered, or renewed on or after May 29, 2023, will be subject to the increased fee.
FAQs
When can insurers start collecting the new MVCPA fee?
The new $5 fee will apply to policies delivered, issued for delivery, or renewed on or after May 29, 2023. The comptroller will update its form, the Insurance Motor Vehicle Crime Prevention Authority Semiannual Fee Report, to reflect the increased fee for policies effective May 29, 2023, and later.
Do insurers need to file rates?
Rule §5.205 requires insurers to submit a rate and rule filing if they will pass on any of the fee to policyholders. The filing should include the manual page or fee schedule showing the name and amount of the fee. If the only change in the filing is the amount of the fee, the insurer is not required to provide supporting information and rate filing exhibits.
Do insurers need to file forms?
An insurer needs to file forms only if its previously approved forms cite the $4 fee. If the forms were filed with brackets for the fee amount, the insurer does not need to refile its forms at this time. To continue using any form that cites the $4 fee, the insurer must file an amended version that changes the $4 fee to $5 or add brackets to indicate a variable amount. This includes declarations pages, endorsements, and other forms. To add the MVCPA fee to a form that does not include the $4 fee amount, the insurer must file the form.
Insurers have the option to file forms now to change the disclosure language to include a statement that the fee helps to fund the detection and prevention of catalytic converter thefts. Alternatively, insurers may choose to postpone the change until after TDI updates Rule §5.205 to include the new disclosure requirements.
If an insurer needs to make a form filing, TDI will review and approve revised forms more quickly if the insurer:
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- Makes no changes other than to:
- replace the $4 with $5 or brackets
- add a statement that the fee helps to fund the detection and prevention of catalytic converter thefts
- Adds the following statement to the Filing Description field (under the General Information tab) in SERFF:
- Makes no changes other than to:
The only changes to the forms in this filing are to update the MVCPA fee amount or replace it with brackets [and to add a statement that the fee helps to fund the detection and prevention of catalytic converter thefts].
Will TDI update the rule?
TDI plans to update the rule that requires the MVCPA pass-through fee notice.
Questions?
For rate/rule filing questions call the Property and Casualty Actuarial Office at 512-676-6700 or send your questions to PCActuarial@tdi.texas.gov.
For form filing questions call the Property and Casualty Lines Office at 512-676-6710 or send your questions to PropertyCasualty@tdi.texas.gov.