Commissioner’s Bulletin # B-0051-04

EFFECTIVE DATE: February 1, 2005

The purpose of this bulletin is to notify all regulated entities and other interested parties submitting form and rate filing fees under Chapters 3 and 11 of the Texas Administrative Code that the Filing and Operations Division of the Life, Health & Licensing Program is preparing to implement a billing system pursuant to 28 TAC §§7.1301 and 7.1302 on February 1, 2005.

The Commissioner adopted the above-referenced rule with changes on May 5, 2003, under Commissioner's Order No. 03-0350. The rule, which took effect June 1, 2003 may be viewed on the Texas Department of Insurance website at www.tdi.state.tx.us/rules/parules.html.

With the adoption of §7.1302 and implementation of a billing system, the Department will no longer require the regulated entity to submit the fee(s) with the filing; instead, the department will bill the entity monthly by itemized invoice.

• Life and Health insurers submitting filings requiring a fee pursuant to 28 TAC §§3.1 et seq.; and
• HMOs submitting filings requiring a fee pursuant to 28 TAC §11.301(4)(A), (B), and (L) and (5)(C), (G), (K), (M), and (N).

The rule requires the Department to mail the invoice to the regulated entity's last billing address on file with the Life, Health and HMO Filings Intake Division and include the name of the billing contact person and an itemization of all filings and fee amounts for which the processing of the form has been completed (e.g., approved, disapproved, withdrawn, or exempted).

If there is a change to a regulated entity's billing address or billing contact person, the regulated entity must submit written notification of the change to the Texas Department of Insurance, Filings Intake Division, Mail Code 106-1E, P.O. Box 149104, Austin, Texas 78714-9104 or 333 Guadalupe, Austin, Texas 78701, or by emailing lifehealth@tdi.state.tx.us.

An invoice issued by the Department is due and payable upon receipt by the designated billing contact person.

In the event an invoice becomes past due 120 days or more, the Department will place a hold on the regulated entity's filing fee account with the Department. The Department may elect not to place a hold on a regulated entity's filing fee account if, as determined by the Department, extenuating circumstances exist beyond the control of the regulated entity which impede the regulated entity's ability to pay an overdue amount (e.g., natural disasters).

If the Department places a hold on a regulated entity's filing fee account, the regulated entity shall be subject to the following:

• the regulated entity must pay the amount past due, 120 days or more, plus any other filing fee amounts that have been billed and not paid, before the Department may remove the hold from the regulated entity's filing fee account;
• the Department will process filings received prior to the date the hold is placed on the regulated entity's filing fee account in accordance with the requirements of §§3.1, et seq., and §11.301 until the processing of the form has been completed (e.g., approved, disapproved, withdrawn, or exempted); and
• the Department will reject filings received by the department on or after the date the hold is placed on the regulated entity's filing fee account until all filing fee amounts for which an invoice has been issued are paid and cleared.

A regulated entity is not required to attach a filing fee to a filing submitted on or after the implementation of the billing system established by the rules. The Department will credit any filing fee submitted with a filing to the regulated entity's departmental filing fee account.

The regulated entity may submit one check to cover one or more invoices. However, to promote efficient administration and processing of payment, it is important that the regulated entity include with the check the "returned" portion of the billing invoice.

Questions regarding the new billing system may be directed to Ms. Belinda Reveles via phone at 512-305-7290 or via e-mail at LIFEHEALTH@tdi.state.tx.us.