IMPORTANT NOTICE
This bulletin is a follow-up to the Commissioner´s July 7, 1997 letter, Year 2000 Alert, to Texas licensed insurers and to Commissioner´s Bulletin No. B-0060-98 dated August 4, 1998 regarding Year 2000 (Y2K) endorsements. The purpose of this bulletin is to notify property and casualty insurers that the Texas Department of Insurance will begin in August of 1998, to survey companies by written questionnaire regarding Y2K loss control programs for policyholders. It is essential that insurers respond to the questionnaire as quickly as possible in order for the Department to evaluate the effect of Year 2000 problems for Texas policyholders.
The Department considers the Y2K issue to present a loss exposure for Texas policyholders that requires appropriate loss control under Texas statutes. Articles 5.06-4, 5.15-2, and 5.15-3 of the Texas Insurance Code require insurance companies writing commercial automobile liability insurance, professional liability insurance for hospitals, professional liability insurance for insureds other than hospitals and commercial general liability insurance to provide loss control based on risk, exposure, loss experience, and other considerations of the policyholders.
In addition to the survey questionnaire, the Department´s Loss Control Regulation Division will target on-site loss control evaluations of Texas insurance companies based on the Y2K exposure of policyholders. Insurers already scheduled for a loss control evaluation within the next six months under the current two-year evaluation schedule will be evaluated for policyholder Y2K exposure during this next scheduled evaluation. Insurers not scheduled for loss control evaluation may be scheduled for a modified loss control evaluation targeting Y2K exposures, or may be requested to submit additional loss control information to the Department.
Please deliver a copy of this bulletin to your Texas or regional loss control manager.
Information and questions regarding loss control evaluations of Y2K programs should be directed to Robert Dentino, Manager, Loss Control Regulation at 512-322-3435 or faxed to 512-305-7425.
Alexis Dick, Deputy Commissioner
Inspections Group
Mail Code 103-1A