Proposed Action on Rules
EXEMPT FILING NOTIFICATION PURSUANT TO THE INSURANCE CODE CHAPTER 5, SUBCHAPTER
L, ARTICLE 5.96 ADOPTION OF NEW AND/OR ADJUSTED 2003 MODEL LPRIVATE PASSENGER
AUTOMOBILE PHYSICAL DAMAGE RATING SYMBOLS FOR THE TEXAS AUTOMOBILE RULES AND
RATING MANUAL
The Commissioner of Insurance adopted amendments proposed by Staff to the
Texas Automobile Rules and Rating Manual (the Manual). The amendments consist
of new and/or adjusted 2003 model Private Passenger Automobile Physical Damage
Rating Symbols and revised identification information. Staff’s petition
(Ref. No. A-0303-07-I) was published in the March 14, 2003 issue of the
The new and/or adjusted symbols for the Manual’s Symbols and Identification
Section reflect data compiled on damageability, repairability, and other relevant
loss factors for the 2003 model year of the listed vehicles.
The amendments as adopted by the Commissioner of Insurance are shown in
exhibits on file with the Chief Clerk under Ref. A-0303-07-I, which are incorporated
by reference into Commissioner’s Order No. 03-0269.
The Commissioner of Insurance has jurisdiction over this matter pursuant
to Insurance Code Articles 5.10, 5.96, 5.98, and 5.101.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the Manual
is amended as described herein, and the amendments are adopted to become effective
on the 60th day after publication of the notification of the Commissioner’s
action in the
Texas Register
.
TRD-200302472
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: April 15, 2003
ADOPTION OF AMENDMENTS TO THE TEXAS BASIC MANUAL OF RULES, CLASSIFICATIONS
AND EXPERIENCE RATING PLAN FOR WORKERS’ COMPENSATION AND EMPLOYERS’
LIABILITY INSURANCE
The Commissioner of Insurance has adopted the amendments proposed by the
Texas Department of Insurance (TDI) staff in a petition filed on February
24, 2003. Notice of the proposal (Reference No. W-0203-05-1) was published
in the March 7, 2003 issue of the
Texas Register
(28 TexReg 21280). No hearing was requested on this matter. The Texas
Department of Insurance received no comments concerning the proposed amendments.
The Commissioner adopted the amendments proposed by staff with one grammatical
change to the proposed amendments as published in the Texas Register. The
adopted amendments to the Texas Basic Manual of Rules, Classifications and
Experience Rating Plan for Worker’s Compensation and Employers’
Liability Insurance (the Manual), provides insurers licensed in Texas to write
workers’ compensation insurance with the rules, classifications, endorsements,
forms and experience rating plan applicable to Texas workers’ compensation
policies. The purpose of these proposed amendments to the Manual is to set
forth guidelines for implementation of the Terrorism Risk Insurance Act of
2002.
The adopted amendments to the Manual are as follows:
1. Amend Rule III E- Calculation of Total Estimated Policy Cost- Item 4
of the workers’ compensation policy to include the Terrorism Premium,
if applicable, in the calculation of total estimated policy cost.
2. Amend Rule VI E- Minimum Premium- Number 5, Adjustment Upon Audit to
indicate that if a policy is written on an "if any" basis, no Terrorism Premium
will be charged unless the policy develops premium during the policy period
or at audit.
3. Amend Rule VI I- Schedule Rating to provide that premium for the Terrorism
Risk Insurance Act of 2002 is not subject to schedule rating.
4. Amend Rule VI to add Section J- Terrorism Premium pursuant to the Terrorism
Risk Insurance Act of 2002 to provide that premium charged for losses covered
under the Terrorism Risk Insurance Act of 2002 is based on the policy’s
total payroll as defined by Rule V B, Remuneration- Payroll. The amendment
further describes how the Terrorism premium should be determined, states that
Terrorism premium is not subject to modifications, states that Terrorism premium
is not included in standard premium, states that if a policy is written on
an "if any" basis, no Terrorism premium will be charged unless the policy
develops premium during the policy period or at audit and states that Terrorism
premium does not apply to Code 0913.
5. Amend Rule VII B- Premium Discount Number 1 to indicate that Terrorism
Premium is excluded from determination of the standard premium.
6. Amend Rule XV D- Domestic Workers- Residences Number 2c to indicate
that Terrorism Premium does not apply to Code 0913.
7. Amend Rule XVII- Premium Incentives for Small Employers to add Section
F to indicate that Terrorism Premium is not subject to the premium incentive
for small employers.
8. Amend Procedures A- Policy Issuance Number 6 to include Terrorism premium,
if applicable, as item to be indicated on the Information Page of the policy.
9. Renumber Section XIV- Forms Applicable for Use In Connection With the
Experience Rating Plan of the Experience Rating Plan to Section XV to accommodate
adding a new Section XIV.
10. Add new Section XIV- Terrorism Premium pursuant to the Terrorism Risk
Insurance Act of 2002 to the Experience Rating Plan to indicate that Terrorism
Premium is not subject to experience rating.
The adopted amendments to the Manual are on file in the chief Clerk’s
Office of the Texas Department of Insurance under Reference No. W-0203-05-1
and are incorporated by reference into Commissioner’s Order No. 03-0273.
The Commissioner has jurisdiction of this matter pursuant to Articles 5.60
and 5.96 of the Texas Insurance Code.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments
proposed by staff to the Manual be and hereby are adopted.
IT IS FURTHER ORDERED that the proposed amendments to the Texas Basic Manual
of Rules, Classifications and Experience Rating Plan for Workers’ Compensation
and Employers’ Liability Insurance will go into effect 15 days after
notice of adoption is published in the
Texas Register
. Adopted Amendments to WC Manual
TRD-200302486
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: April 16, 2003
TEXAS DEPARTMENT OF INSURANCE EXEMPT FILING NOTIFICATION PURSUANT TO THE
INSURANCE CODE CHAPTER 5, SUBCHAPTER L, ARTICLE 5.96 ADOPTION OF AMENDMENTS
TO THE TEXAS WORKERS’ COMPENSATION STATISTICAL PLAN
The Commissioner of Insurance has adopted the amendments proposed by the
Texas Department of Insurance (TDI) staff in a petition filed on February
24, 2003. Notice of the proposal (Reference No. W-0203-06-I) was published
in the March 7, 2003 issue of the
Texas Register
(28 TexReg 2128). No hearing was requested on this matter. The Texas
Department of Insurance received no comments concerning the proposed amendments.
The Commissioner adopted the amendments proposed by staff with no changes
to the proposed amendments as published in the Texas Register. The adopted
amendments to the Texas Workers’ Compensation Statistical Plan (the
Plan) provide insurers licensed in Texas to write workers’ compensation
insurance with the necessary instructions for the reporting of statistics
to the Texas Department of Insurance. The purpose of the adopted amendments
to the Plan is to set forth the guidelines for implementation of the Terrorism
Risk Insurance Act of 2002.
The adopted amendments to the plan are as follows:
1.Add Item 16 to Exposure and Premium Reporting Instructions to explain
how Terrorism Premiums are to be reported using statistical code 9740.
2.Amend Statistical Code listing to include statistical code 9740 for Terrorism
Premiums. Add statistical code 9740 for Terrorism Premiums to the Statistical
Code listing.
3.Remove references to statistical code 0020 for the "Texas old Program"
from Exposure and Premium Reporting Instructions. Delete references to statistical
code 0020 of the "Texas Old Program" from Exposure and Premium Reporting Instructions.
The adopted amendments to the Plan are on file in the Chief Clerk’s
Office of the Texas Department of Insurance under Reference No. W-0203-06-l
and are incorporated by reference into Commissioner’s Order No. 03-0274.
The Commissioner has jurisdiction of this matter pursuant to Articles 5.60
and 5.96 of the Texas Insurance Code.
IT IS THEREFORE THE ORDER of the Commissioner of Insurance that the amendments
proposed by staff to the Plan be and hereby are adopted.
IT IS FURTHER ORDERED that the proposed amendments to the Texas Workers’
Compensation Statistical Plan will go into effect 15 days after notice of
adoption is published in the
Texas Register
.
TRD-200302487
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: April 16, 2003
Final Action on Rules
Final Action on Rules