Pursuant to the authority of Article 1.24, of the Texas Insurance Code (TIC), the department requests all companies writing property, residential and automobile insurance in Texas to submit information relating to disallowed expenses on the attached forms.
Article 5.101, Sec. 3, of the TIC, prohibits the consideration of certain incurred expenses in the determination of benchmark and individual company rates for lines of insurance regulated under the flexible rating program. This call is designed to provide quantification of such "disallowed" expenses on a countrywide basis.
This call must be completed and returned in accordance with the instructions by no later than April 1, 1999. Underlying data, individual source documents and other information utilized in the development of your call response must be maintained in your records for a minimum of two years after April 1, 1999.
Failure to comply with the requirements of this call within the time limits specified shall constitute a violation or violations of the TIC and shall subject the insurer to the penalties provided by law.
Questions concerning this call should be directed to Julie Jones at the Texas Department of Insurance at 512/475-3027.
Clare Pramuk, Director
Data Services Division
Mail Code 105-5D
Texas Disallowed Expense Call Instructions
This call requires that you submit countrywide direct written premiums and insurance expense exhibit data for all property and casualty lines combined if your company had writings in Texas for the year 1998 in one or more of the following lines:
- Residential Fire
- Residential Allied Lines
- Farmowners Multiple Peril
- Homeowners Multiple Peril
- Private Passenger Automobile
- Commercial Automobile
If your company did NOT have direct writings in Texas for 1998 in any of the above lines, you may satisfy the call by completing and returning only the Transmittal Form indicating a "NONE" filing and the signed affidavit.
Transmittal and Affidavit
When filling out the Transmittal form (page 3) you must include the name of the company/companies and the corresponding NAIC number(s) for each company for which you are submitting data. The Affidavit form (page 7) must be signed by the highest ranking company official with management and control authority over the development of the reported information and must be notarized.
Report of Insurance Expense Exhibit Data
Report all amounts to the nearest thousand as they are reported in the Insurance Expense Exhibit. If you are submitting a group filing you may do one of the following:
(1) file insurance expense exhibit data in aggregate amounts, or
(2) submit an insurance expense exhibit report for each company in your group.
An affidavit must be signed and submitted for each report of insurance expense exhibit. If you are filing as a group, please ensure that you list the company names and NAIC numbers on the transmittal form.
Retention of Records
The underlying data and other information utilized in the development of your call response must be maintained within your company´s records for a minimum of two years after April 1, 1999.
Acknowledgment of Receipt form
An Acknowledgment of Receipt form is included (page 8), and must be signed and returned to the Texas Department of Insurance, Data Services Division by March 8, 1999. You may send the form by mail to:
The Texas Department of Insurance
Data Service Division (MC105-5D)
P.O. Box 149096 or
333 Guadalupe, Tower 1
Austin, Texas 78701;
Or fax it to 512-463-6122
Disallowed Expense call on the Web
For a copy of this call please see our web site at www.tdi.state.tx.us and go to the Company information site under Data Calls.
If a TDI acknowledgment of receipt is desired, include a stamped, self-addressed envelope.
If you have any questions regarding this matter, please contact Julie Jones at the Texas Department of Insurance, Data Services Division at 512/475-3027.