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You are here: Home . rules . 2005 . 1019a-059
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EXEMPT FILING NOTIFICATION COMMISSIONER'S ORDER NO. 05-0906

PURSUANT TO THE INSURANCE CODE

CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96

ADOPTION OF REVISED WORKERS´ COMPENSATION CLASSIFICATION RELATIVITIES AND AMENDMENTS TO THE TEXAS BASIC MANUAL OF RULES, CLASSIFICATION AND EXPERIENCE RATING PLAN FOR WORKERS´ COMPENSATION AND EMPLOYERS´ LIABILITY INSURANCE UPDATING EXPECTED LOSS RATE AND DISCOUNT RATIO TABLE

The Commissioner of Insurance adopts the amendments proposed by the Texas Department of Insurance staff in a petition filed on August 25, 2004 . Notice of the proposal (Reference No. W-0804-14-I) was published in the September 3, 2004 issue of the Texas Register (29 TexReg 8623). The amendments were considered at a public hearing held under Docket No. 2597 on October 7, 2004 at 9:30 a.m. in Room 100 of the William P. Hobby Building , 333 Guadalupe Street in Austin , Texas .

The Commissioner adopted the amendments proposed by staff with no changes to the proposed amendments as published in the Texas Register . The adopted amendments include revised Texas Workers' Compensation Classification Relativities (classification relativities) to replace those adopted in Commissioner´s Order No. 02-1122 dated October 28, 2002, and a revised table amending the Texas Basic Manual of Rules, Classification and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance (Basic Manual) concerning the Expected Loss Rates and Discount Ratios used in experience rating.

The Texas Department of Insurance received one comment concerning Docket No. 2597 that expressed support for staff´s petition proposing changes to workers compensation relativities.

The Commissioner has jurisdiction of this matter pursuant to Articles 5.60 and 5.96 of the Texas Insurance Code.

The Commissioner has determined that it is necessary to revise the classification relativities and the table in the Basic Manual as proposed by staff at the October 7, 2004 hearing so that they will be based on the most recent economic trends and experience data available.

The revised classification relativities and the amendments to the Basic Manual are on file in the Chief Clerk's Office of the Texas Department of Insurance under Reference No. W-0804-14-I and are incorporated by reference into Commissioner's Order No. 04-1001.

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

Consistent with the Texas Insurance Code Article 5.96(h), prior to the effective date of this action, the Texas Department of Insurance will notify all insurers affected by this action.

IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments proposed by staff to the classification relativities and the Basic Manual are adopted.

IT IS FURTHER ORDERED that the revised classification relativities are available for immediate use by insurers and that their use is mandatory for all policies with an effective date on or after January 1, 2005 unless the insurer makes an independent filing to justify insurer specific classification relativities on or before January 1, 2005.

IT IS FURTHER ORDERED that the amendments to the Basic Manual apply to all experience modifiers with an effective date on or after January 1, 2005.

FOR COPIES OF EXHIBIT A & B CONTACT (ChiefClerk@tdi.state.tx.us )



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