• Increase Text Icon
  • Decrease Text Icon
  • Email Icon
  • Print this page
You are here: Home . rules . 2002 . 0115-059
Archived File – for Reference Use.
Links and contact information may be outdated.

EXEMPT FILING NOTIFICATION PURSUANT TO THE INSURANCE CODE

CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96

The Commissioner of Insurance (Commissioner) adopted amendments to the Texas Commercial Lines Statistical Plan - Farm & Ranch and Farm & Ranchowners modules (Stat Plan) as proposed by the staff of the Texas Department of Insurance (Staff).

The Commissioner has jurisdiction over this matter pursuant to Insurance Code, Article 5.96 and §§38.204 and 38.207. Article 5.96 authorizes the Commissioner to prescribe, promulgate, adopt, approve, amend, or repeal standard and uniform manual rules, rating plans, classification plans, statistical plans and policy and endorsement forms for fire and allied lines of insurance. Section 38.204 provides that a designated statistical agent shall collect data from reporting insurers under a statistical plan adopted by the Commissioner. Section 38.207 authorizes the Commissioner to adopt rules necessary to accomplish the purposes of the subchapter regarding statistical data collection.

The adopted amendments allow the reporting of experience relating to the use of the Insurance Services Office´s (ISO´s) recently approved policy forms. The adopted amendments:

· add options to the Policy Forms field of the Stat Plan for ISO´s new policy forms.

· add options to the subline field that are applicable to ISO´s new policy forms.

· add a field to report the actual dollar amount of the deductible that is associated with a particular policy and a field to indicate whether wind coverage is included. With the addition of this new field, the current deductible field is no longer necessary and therefore is deleted.

· add a field to capture risk classification information specific to ISO´s new policy forms.

· add a field to capture rating modification factor information specific to ISO´s new policy forms.

· add a field to capture company loss cost multiplier information specific to ISO´s new policy forms.

· expand the cause of loss options to match those available under ISO´s new policy forms.

· delete the tenure discount field as it is no longer applicable.

· delete the fire rate field as it is no longer applicable.

· delete the optional credit field as it is no longer used.

· amend the types of submission media to reflect electronic media types that are currently available.

Staff´s petition (Ref. P-1102-42-I) proposing the amendments was filed with the Chief Clerk of the Texas Department of Insurance (Department) on November 8, 2002, and notice of the filing was published in the November 22, 2002 issue of the Texas Register (27 Tex Reg 0493).

The Department received no comments regarding Staff´s proposed amendments.

The amendments as adopted by the Commissioner are filed with the Department´s Chief Clerk under Ref. No. P-1102-42-I and are incorporated by reference by Commissioner´s Order 03-0023.

Consistent with the Insurance Code, Article 5.96(h), prior to the effective date of this action, the Department will notify all insurers writing the affected lines of insurance in this state of this action.

This notification is made pursuant to the Insurance Code, Article 5.96, which exempts action taken under this article from the requirements of the Administrative Procedure Act (Government Code, Title 10, ch. 2001).

IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments to the Texas Statistical Plan for Residential Risks as described herein, be adopted to be effective for second quarter 2003 experience reporting for all affected insurers.



For more information, contact:

Contact Information and Other Helpful Links