The commissioner of insurance issued Commissioner's Order No. 2017-4959, dated February 23, 2017, adopting revised Texas workers' compensation classification relativities. The order decreased the classification relativities by an average of 10 percent overall from the July 1, 2016, level. The change for any given classification is between -32.5 percent and 12.5 percent.
For workers' compensation policies with effective dates on or after July 1, 2017, the order requires each workers' compensation insurer to adopt the revised classification relativities unless the insurer files an alternate classification rate basis. An alternate classification rate basis may include:
- an insurer's own independent, insurer-specific classification relativities, or
- the National Council on Compensation Insurance (NCCI) loss costs effective on July 1, 2017.
Insurers may not use the July 1, 2016, classification relativities or the July 1, 2016, NCCI loss costs as the basis of their rates for policies with effective dates on or after July 1, 2017.
Actions Required of Insurers
Insurance Code §2053.003 requires each insurer to file with TDI all rates, supplementary rating information, and reasonable and pertinent supporting information for risks written in this state.
Insurers currently writing workers' compensation insurance that plan to continue writing that coverage on or after July 1, 2017, must submit a rate filing to TDI no later than June 1, 2017. The rate filing must contain the information specified in the attached "Summary of Actions Required by Insurers 2017."
Insurers' rate filings should use the most recently available data and information. An insurer that is not currently writing workers' compensation insurance but plans to write its first policy with an effective date on or after July 1, 2017, must send its rate filing to TDI at least 30 days before the effective date of its first policy.
Filing Forms and Exhibits
The Property and Casualty Filings Made Easy Guide on the TDI website at www.tdi.texas.gov/pubs/pc/rspceasy.html is an aid for making rate filings in Texas. Insurers may provide the required information using the exhibits in the Filings Made Easy Guide, or in their own exhibits and formats.
Property and casualty insurers must comply with the filing requirements in Title 28, Texas Administrative Code, Part 1, Chapter 5, Subchapter M, Division 6. Section 5.9334 addresses the requirements for each rate filing submission. Each of these requirements (along with other categories of information that may be requested) is described in detail in §5.9332 (Categories of Supporting Information).
This bulletin and attachments are located on TDI's website at www.tdi.texas.gov/bulletins/index.html.
Where to Send Filings
Submit filings by SERFF, or mail or deliver them to Property and Casualty Intake at the appropriate address:
Texas Department of Insurance
Property and Casualty Intake
Mail Code 104-3B
P.O. Box 149104
Austin, TX 78714-9104
Texas Department of Insurance
Property and Casualty Intake (MC 104-3B)
Tower 1, Room 103
333 Guadalupe Street
Austin, TX 78701
For further information, please contact Nicole Elliott in the Property and Casualty Actuarial Office by phone at 512-676-6703 or by email at Nicole.Elliott@tdi.texas.gov.
Director and Chief Actuary
Property and Casualty Actuarial Office