Guide for Loss Control/Risk Management Evaluations
New! The Texas Department of Insurance has scheduled a stakeholder meeting to discuss comments on the informal working draft rule on loss control information and services. For more information, please see the TDI January Calendar.
Definition of Loss Control
TDI's Role in Loss Control Regulation
TDI's Inspection Process
Lines of Insurance Subject to Evaluation
Loss Control Forms
Texas Insurance Code (TIC) and Texas Administrative Code (TAC)
Helpful Documents for Insurance Carriers
Loss control is a risk management technique that seeks to reduce the possibility that a loss will occur and reduce the severity of those that do occur. A loss control program should help policyholders reduce claims, and insurance companies reduce losses through safety and risk management information and services.
Every two years, TDI's Loss Control Program is responsible for reviewing and evaluating insurance companies' loss control/risk management programs for Texas policyholders. TDI ensures that the insurance companies are capable of providing pertinent loss control information and services.
TDI Loss Control inspections includes the following process:
- reviewing the components of the companies' Texas loss control programs
- selecting representative insured files from each insurance company based on the account's adverse loss experience (loss frequency and severity) for each policy period subject to review
- verifying that the company monitors the insured's risks, exposures, and loss experience throughout the policy period and identifying accounts for consideration of services
- verifying the company's risk management resources available to assists their insureds
- verifying that the company provides appropriate loss control information and services to address and assist their policyholders in reducing and preventing losses
- verifying the qualifications of the individuals providing loss control services
- providing a rating of adequate or inadequate at the conclusion of the inspection
- referring companies with inadequate ratings to TDI's Enforcement Section to take appropriate action.
For tips for a successful inspection and common inspection errors, please see the Loss Control Tips presentation.
TDI's Loss Control Program evaluates insurance companies writing the following lines of insurance in Texas:
- commercial automobile
- commercial general liability
- professional liability for insureds other than hospitals
- medical professional liability for insureds other than hospitals
- professional liability for hospitals.
NOTE: Use your arrow keys to scroll through the Texas Administrative Code rules to locate the applicable section.
Texas Insurance Code (TIC):
- Sec. 1952.058. Loss Control Information and Services Required. -- for insurers desiring to write commercial automobile liability insurance.
- Sec. 1903.003. Loss Control Services Required. -- for insurers desiring to write professional liability insurance for hospitals.
- Sec. 1903.051. Loss Control Information Required. -- for insurers desiring to write professional liability insurance for insureds other than hospitals, general liability insurance, or medical professional liability insurance for insureds other than hospitals.
Texas Administrative Code (TAC):
- 28 TAC, Chapter Five, Subchapter A, Automobile Insurance, §§5.301-5.311 -- loss control information for commercial liability insurance.
- 28 TAC, Chapter Five, Subchapter B, §§5.1701 - 5.1713 -- standards for providing loss control services for professional liability insurance for hospitals.
- 28 TAC, Chapter Five, Subchapter B §§5.1721 - 5.1731 -- Loss Control Information -- for professional liability insurance for insureds other than hospitals, for general liability insurance, or for medical professional liability insurance for insureds other than hospitals.
The Texas Department of Insurance, Loss Control Program
333 Guadalupe Street - Austin, TX 78701
P.O. Box 149221 MC 103-9A - Austin, TX 78714-9221
For more information, contact:
Last updated: 01/13/2017